The general purpose of loan management software is two-fold. First, the software streamlines the lending process from the application to the final decision and terms. Second, quality loan servicing software reduces errors by handling repetitive tasks such as collections.
Good software has dozens of features to make lending easier, but there are seven essential features every piece of loan management software should have as a baseline.
Process automation
Robot process automation (RPA) saves time by handling routine tasks. Any repetitive process that follows a programmable set of instructions can and should undergo automation by software developers.
Not only does RPA save users time, but it also eliminates human error that can slow down the lending process or grind it to a halt.
Simple deployment
A loan management system should integrate into existing systems and be easy to deploy. The last thing a growing lender needs are bottlenecks caused by new software that doesn’t work well within its existing framework.
Cloud-based loan management software only requires an internet connection without the days or weeks to integrate a new system into a work environment. Lenders don’t need dedicated IT departments to troubleshoot and smooth the edges when using a cloud-based software system.
Scalability
Software that grows with a lender’s business won’t hold a company back as it succeeds. Good lending software needs to scale and let users add new products and services. Software should never cause limitations on what a lender can offer borrowers.
One of the most significant benefits of cloud-based software is its scalability. A business experiencing fast growth won’t need to invest in more servers or equipment to keep up with demand when using a cloud-based storage solution.
Custom options
Lenders should be able to customize loan management software to meet their needs. The software should adapt to a lender’s business practices and not the other way around.
Examples of customization include proprietary credit assessments that a lender uses to judge creditworthiness beyond FICO scores or extra steps in the lending process.
Centralized storage
Storing all a lender’s information in a central location means that anyone with access can pull anything they need at a moment’s notice.
Storing all information about a borrower in one place gives a complete picture of that loan’s process and streamlines decision-making and the workflow relating to that loan.
Visibility
Creating multiple accounts with custom restrictions on what each user and group of users can see lets everyone access the information they need. This feature puts reports in front of the people who need them while others see only the information relevant to their assigned roles.
Responsive and mobile-friendly
Loan management software should be a responsive design that’s clear on any platform, whether a computer, tablet or phone. Borrowers want the convenience of using phones to handle their accounts, and legacy lending software doesn’t translate to a good mobile user experience.
In conclusion
Borrowers shop for loans at online lenders more today because the process is fast and straightforward, thanks to technology and automation.
Using loan management software with the right features like scalability and customization allows lenders to process loans more efficiently with fewer errors.
