Technology is often dubbed the “great equalizer,” but traditionally only lenders with unlimited budgets have had access to the best technology. However, that has now changed in regard to auto loan originations. Loan origination systems leveraging SaaS and “pay by use” are allowing the smallest lenders to access big lender functionality and gain scale efficiencies. The software that meets the needs of large auto lending institutions and processes thousands of complex applications monthly is now affordable and feasible for small and mid-size lenders. The technological advances adopted by newer technology loan origination software and cloud computing have finally made this possible.
Small lenders can now provide the same and sometimes even better levels of service to meet the complex requirements of dealers and consumers. They don’t have to buy a big expensive system to be efficient. Auto lenders of any size can have all their data in one easy-to-manage system with automated communication to and from dealers and predefined and compliant tools that can work from anywhere.
Here are just a few ways technology has improved the ability for auto lenders to meet customer needs:
Eliminating the need for faxing and paper. Literally everything can be transmitted electronically and backed up for easy access at any time. No need for paper documentation. It may be a bit scary to let go of paper files, but it’s more efficient and secure to do so. Dealers, banks and lenders are embracing the ease, security and efficiency offered by paperless communication.
Allowing automatic tracking of the application life cycle. No more worry about determining what to save, print or file. All changes are electronically time stamped and tracked to the specific user and deal. Documents required for each deal are stored within the applicant’s profile and decision data. Auditable and complete files are kept on every application including all notifications, concurrences and communications.
Enabling system changes without waiting for vendors or developers. Now with browser-based configuration tools, you can log in to your system from anywhere and make changes to anything you are authorized to maintain in the system. Administrators can update settings such as rules and scorecards in minutes and track and test all changes within the system. Today’s LOS software puts lenders in control. With today’s technology, customization of drop downs, screens, fields and user access are quick, compliant and simple.
Connecting third-party data out of the box. Data mapping to third-party data providers, bureaus, valuation services, servicing providers and reporting services can be done quickly and easily. Connecting to outside data providers does not require a long process of planning and integration development. New LOS technology now allows lenders to decide what is needed as a part of the basic setup and incorporate that data based on lender-defined rules.
Offering easy access from smart phones and other mobile devices. LOS systems are now designed to make access on the go available to sales reps and other users from smart phones and tablets. Dealers expect fast decisions and knowledgeable sales reps, so making application and decision data secure and easy to access remotely is key to keeping service levels high.
Creating scalable functionality to easily grow with demand. Lenders can grow within the system with no need to change vendors, install upgrades or endure long development projects. New LOS technology allows lenders to add integration, data, and process enhancements as needed to meet increasing volume with ultimate efficiency. No new hardware or software is needed.
Defying conventional wisdom, small and mid-size auto lenders can now afford all the same tools as large lenders. Technology is truly leveling the playing field so that even more complicated lender requirements can be met to automate intricate processes and make quick changes in response to market and customer demands. It might be time to ask if your company is utilizing current technology fully and if not, what is it costing you in time, paper, and service delays?
Stephanie Alsbrooks is CEO and creator of Big Boy Technology.
defi SOLUTIONS provides configurable loan origination systems, loan management and servicing, analytics and reporting, and a wide range of technology-enabled BPO services. If you’re struggling with the limitations of your current lending technology solutions, take the first step in realizing the benefits of modern technology. Contact our team today or register for a demo.