Today’s ever-changing lending industry is burdened with regulations and unpredictable volumes of business data. To keep up with the evolving demands of the market, lenders continually need fresh processes and workflows. It is imperative that the lending industry starts encouraging innovation in mortgage origination software to mitigate risks and help close more loans with fewer resources. With the advent of mobility and agile-enabled software solutions, mortgage origination, documentation, verification and approvals have become lot more easy. However, one bottleneck that is still only evolving is e-signatures.
Quicker closing may be one of the benefits of lenders going mobile, but customers get to experience something even better. When they have a gamut of information, that too personalized, on their “palmtops”, it is a real game changer. The idea of being able to check eligbility and apply for loans in a totally secure manner is something whose time has come. For many lenders, this is an alarm-clock moment. New generation pureplay online-only lenders like QuickenLoans have disrupted the market for traditional players. Mortgage origination software can give headway to lending industries and help them successfully negotiate large volumes of data compliance.
5 must have features of Loan Origination System (LOS)
Here is a bucket list of innovative features that LOS should definitely incorporate:
- Prescreening: The tool should allow for automatic checks on applicant eligibility and credit.
- Underwriting & credit analysis: The tool should have software for underwriting and also be able to rank customers based on an internal scoring engine.
- 360-degree dashboard: The tool should provide configurable, operational, and investigative reports & dashboards.
- Integration with third-party applications: The tool should allow seamless integration with bank’s third-party and legacy applications.
- Interface: LOS should have robust workflow for disbursal of loans, thus reducing scope for errors.
Benefits: A Quick Snapshot
There are a host of benefits that lenders can derive by investing in LOS. Let’s break them down into 3 buckets:
- Profits: Loan origination systems lead to faster loan disbursements, reduce scope for error, and also minimize operational costs. All this adds up to increased profits.
- Better customer experience: By implementing advanced LOS, lenders can interact better with consumers through multiple channels. Streamlined operations enable faster response to customer queries. Presence on social media platforms further adds to customer delight.
- Analytical knowledge: Analytics give businesses a fair amount of insight into each transaction and helps in predicting trends. It goes a long way in helping businesses make relevant decisions and resource allocations.
An interesting research on banks and lenders showed that people prefer ‘online’ presence over ‘convenient branch location’. This implies a huge focus on digital and mobile lending. Lenders need to steadily increase the breadth and depth of their digital footprint to stay put in the market.
The idea of attracting customers can be a simple one if technology advances in tandem with people’s habits. These changing times are marked by people choosing increasingly convenient devices to perform transactions, connect with people, and hire services.
By going mobile, lenders will be able to be where there customers love to stick around. It is a direct approach and should be refined in order to make customer experience secure and easy. Platform-based development of banking technology is going a long way to make everyone’s life easier.
Putting it together
It’s time to let go of antiquated methods to carry out lending. The digital age has opened up a sea of opportunities to leverage novel technologies for closing loans. Businesses that fail to catch up will struggle. It’s time to start thinking how we can make the lending market more dynamic, scalable, integrated, secure, and comprehensive.