When looking for software to help manage their loan portfolios, lenders should look for solutions that decrease their dependency on manual labor. As with other industries, digital solutions can dramatically reduce the chance of human error, leading to higher revenue. The right loan management system will allow lenders to expand their businesses without increasing risk while improving data security.
Automation
Automation can improve an array of mundane tasks that used to be done manually, increasing operational efficiency while decreasing turnaround times. A modern loan management system streamlines processes, accelerating the application and decisioning phases of originations by applying automated decision rules. This, in turn, lowers the chance of mistakes and increases customer satisfaction.
These loan management systems can also automate many accounting tasks like invoicing and even identify accounts in or about to go into default. Automation also helps lenders maintain financial documents for compliance and tax purposes. Ideally, a loan management system should allow lenders to customize which processes to automate, allowing changes to be easy when circ*mstances warrant.
Integration
Another area in which today’s loan management systems excel is their ability to integrate with software applications, including legacy systems and enterprise software. By integrating with other lending software, new insights can be gleaned from customer data. This allows lenders to target specific markets for their products, among other capabilities.
Integrated lending platforms provide a multi-faceted solution that can streamline:
- Credit assessments
- Funds disbursal
- Loan originations
- Onboarding of new customers
- Repayments
- Underwriting
One of the primary beneficiaries of integrated loan management systems involves a better experience for customers, significantly improving turnaround time for decisions along with general efficiency. By supporting third-party integrations, lenders can customize their software to meet their own needs and customers’ specific needs.
Integrations of any loan management system should allow lenders to connect instantly to credit bureaus and other entities that help establish creditworthiness. Modern lending platforms allow lenders to regularly receive updates to credit data so that they can leverage it via analytics software to glean insights into multiple aspects of their business operations. This provides an added layer of assessment with which they can establish the trustworthiness of loan applicants.
Analytics
AI and machine learning technologies paired with analytics software provide lenders with a powerful tool to easily develop new products and services, evaluate trends in specific markets and predict customer behavior. Analytics has become vital for any business that deals with vast amounts of data, which makes it particularly useful within the lending industry. Through reports that present insights from this data, lenders can take action to acquire more customers, better follow market trends, establish key performance indicators, identify bottlenecks in processes, and enhance productivity throughout their operations.
Accessibility & Responsiveness
Businesses are using financial technology (fintech) to make their products or services more accessible to their customers. This is especially important for customer-centric industries like consumer lending, where a customer’s experience has become increasingly important. By making their products more accessible and their businesses more responsive to the needs of their customers, lenders increase the likelihood that customers will return or provide positive word-of-mouth advertising.
This growing proliferation of lending software apps for smartphones and other mobile devices has made it easier for loan applicants and borrowers to better access lenders’ products. Cloud-based infrastructure supports fintech, enabling access via various operating systems and mobile devices. In contrast to the legacy loan management systems that use a siloed approach to data storage, modern fintech makes loan processing less labor-intensive.
For lenders looking to build their portfolios and better serve their customers, defi SOLUTIONS offers a complete loan management software platform that includes originations, managed servicing, accessibility via mobile devices, and capabilities to integrate with a wide variety of products.
defi offers solutions that include:
- A loan origination system that’s configurable, flexible, reliable, and scalable.
- Managed servicing of auto loans and leases through chatbots, conversational AI technology, virtual assistants, and other digitally-oriented interactions to offer the best user experience to lenders’ customers.
- Mobile solutions that allow customers to interact via any connected device so that customers can conduct business when and where they like.
- Integrations with third-party vendors who supply software to assist with compliance, risk, payments, reporting, servicing, and vehicle valuations while connecting lenders with credit bureaus, alternative data, and other data sources.
In addition to the above technology, defi also offers a means to streamline servicing of lenders’ products throughout the lifecycle of a loan. By offering account administration, collateral and default management, customer care, and other services, defi seeks to provide holistic solutions for consumer lenders.
Our defi MANAGED SERVICING provides a single hub, digital interactions, and intelligent virtual assistants to bring everything together for you.
defi MANAGED SERVICING uses AI and Contact Center as a Service to boost operations and processes related to auto loans, leases, and leased vehicle dispositions, reducing budgetary expenses and improving customer service.
We offer you a choice of end-to-end auto loan servicing or à la carte services, such as loan and lease customer service, lease maturity management, remarketing, and backup servicing.
