When talking about loan origination and servicing software, lending companies have many options to choose from, and depending on the type of loan your business offers there are specific features you should consider at the time of selecting a Loan Management system for your business or even if you’re looking to design your own loan management system, too.
Given the highly competitive market in the lending industry, providing the best loan origination and servicing service is crucial if you are looking to stand out. Having the best appropriate loan process tool can make the difference between being at the top of the game or being just one of the many options for borrowers to choose from, with nothing to differentiate your business from the rest.
So, what features should you pay attention to when shopping for your premium Loan Origination and Servicing System? Let’s have a look.
Best Features for a Loan Management System
To design a loan management system that can provide all the tools to help you streamline the complete loan process, it needs to include the most important features that would not only help you complete a deal faster but would also offer more accurate customer data and analytical insights to thrive in today’s market.
We will break these features up a little and explain why you should have them.
The goal of every business is to grow and diversify its products and services. Many loan systems are already fixed and very hardcoded, making it difficult for the software to support businesses as they grow and expand. The best loan management systems for your organization should have scalable modules that would match the changes that come to your business as it grows or would allow you to introduce new products and services created to meet the latest market’s needs.
2. Cloud-based software.
For some businesses, having an on-demand IT team to support the implementation of new software is not an option. For this matter, a good feature of a great loan management system is its ease of deployment.
Having cloud-based loan management software can facilitate the deployment for lenders. It guarantees quick implementation, provides software flexibility, you can contact your services provider’s IT department for support, and in most cases, these cloud-based systems include frequent upgrades and automatic updates.
Most importantly, being on the cloud allows your team to access the software from anywhere with an internet connection and get access to any information faster.
3. Easy to use software.
Time is of the essence in the lending industry, and finding a tool that can help your team be up and running in no time is important, but it is also essential that the LMS you select can be an easy-to-use software that would not require a lot of time of training for the staff.
So, a successful user adoption of your new system is key when selecting the best loan management software for your business.
4. Centralized approach.
Having a centralized place to host all the different stages of a loan lending lifecycle is ideal. One of the many pain points this industry faces is the lack of enough systems that work really great from beginning to end on the loan process, especially for the small lending business that can’t afford to have multiple different systems to store and retrieve borrower’s data.
Selecting software that supports all the loan management system modules, from origination to servicing and syndication, will save your company a crazy amount of money per month and give your organization a 360-degree view of a loan applicant’s profile. You can see the lending stage of the application, who is handling the case, and all related information from anywhere.
5. Integrated functionalities.
There are multiple modules that lenders need to consider approaching to complete the lending lifecycle, like onboarding, the credit assessment, underwriting, funding, and more.
By having a system that either offers all these modules already built into the platform, allows for customizable modules, or even supports the integration of third-party apps, it can easily reduce the burden off lenders’ shoulders, save time for your team, and improve customer experience, which makes it an important feature when looking for the perfect loan system.
6. Credit assessment.
An accurate credit assessment is a key step for a successful lending deal. So, finding a software that can provide a way to assess the creditworthiness of applicants by pulling the information from all credit bureaus or providing accurate information in a timely manner is an ideal feature of a lending management system. Fortunately, some systems offer these integrations to add more efficiency and a complete view of the applicant’s credit scores.
7. Management of lending rates.
A sound loan management system should involve the management of lending rates for any type of loan, automatically calculate commissions and origination fees or apply period-specific base lending rates based on the borrower’s credibility.
8. Mobile ready.
New-age borrowers are looking for the easiest and fastest way to apply for and receive loans from lenders. With the competitiveness of this market, lenders can’t have the luxury of being stuck in outdated software.
If you want to keep up with current trends and stay ahead of the market, you need a loan management system that can be accessed from anywhere and on any device. Especially now that most borrowers have access to smartphones and tablets, being mobile-ready is a critical feature for your loan software.
When managing sensitive borrowers’ data, it is essential for lenders to ensure they adhere to data security best practices. For this reason, the lending software of their choice should allow the business to establish centralized data storage that can be accessed by only authorized people with the proper permissions.
Furthermore, as a lender, you must ensure the loan management software complies with the industry’s privacy standards and has the highest compliance certifications and measures.
Finally, we are certain that every lender runs its own organization in a specific way, and every business has its own uniqueness. You must select a loan management system that is easy to configure and dynamic so that you can determine what is best for your business and make the changes you need to ensure that it fits the way your business works without having to write APPEX and code to change the configuration.
To keep up with the emerging trends in the financial market, you need to streamline the complete lending process, so it can be faster and easier and caters to your business needs. While researching the best LMS platform, take into account the key features: scalability, customization, centralized, easy to use, cloud-based, and adhering to data security best practices.
At Cloudsquare, partners in the lending industry work with our premium loan origination system, FundSuite. This LMS is built on the Salesforce platform, specifically designed for lenders, servicers, brokers, and businesses working on funding loans. We help you accelerate your business by streamlining the complete loan management process, from origination to servicing, underwriting, and syndicating.
Get in touch with one of our Salesforce experts and ask for a demo to peek at all the features our loan management software offers and how it can benefit your organization.