Must check points while selecting your LOS

loan origination

Today’s customers have no patience for the mounds of paperwork and lengthy processes, redundant requests or lack of process transparency when applying for loans. Many banks still struggle with manual processes, duplication of data entry and data entry errors when processing loan applications. So, selecting the right loan servicing package for your servicing business can be a make-or-break decision.  Whether yours is a small company currently tracking loan portfolios through Excel spreadsheets or a large, established lender with a loan servicing system that’s not living up to its promise, you probably already know that implementing a quality software system will save time and increase productivity. Here are some points that are must check while selecting LOS (loan origination software):

Hassle free Online Applications and Portal

In person meetings, lengthy application forms, detailed reference checks, physical signatures etc. are all being junked in favour of a seamlessly integrated, fully on-line process that is not only faster, but more secure and compliant than anything the industry has witnessed till date.

A key requirement for the front end of any LOS is to provide the borrower with convenient, online access to apply, submit documents and check loan status. The application process, for both the borrower and the bank staff, should be streamlined and offer clear gathering of data, straightforward selection of products and services, and simple navigation. A solid borrower portal should support strong communication and interaction with the customer, electronic upload of documents, secure   e-mail and/or communication capabilities, disclosure and documentation review and real-time loan status updates.

Cross Sell opportunity

In addition to improving the application process, cross-sell opportunities should be well integrated using a combination of institutional data (i.e., core, data warehouse, etc.) and real-time trade line information to present a “qualified” cross-sell opportunity at the right time in the process. Cross-sells should be highly dynamic and reportable, allowing the organization to understand what is being cross-sold well and by whom. A system’s ability to provide a crisp story around customer acquisition and cross-sell during the application process has become a huge area of focus in selections as of late. As a result, Retail and Marketing are becoming just as involved as Lending in the selection process to ensure this front-end customer experience is spot-on.

Paperless Processing and workflow

Out of all potential lending process improvements, paperless processing truly yields the most potential for positive benefits and can radically transform an organization. However, it is also a massive cultural shift for most shops to absorb. Since e-processing dramatically alters the existing processes, there is a pre-conceived notion that it will impact the staff’s ability to provide good customer service. In fact, paperless processing should free up staff from manual tasks, loan checking, and compliance and QC efforts and streamline communication to allow for more time to provide hands-on service. A good system will support a 100% paperless environment including digital communication and document transfer with the client and seamless integration to image archive and/or imbedded doc archive functionality for doc storage and retrieval.

Integration with other various Internal Systems

Integration of the LOS system with the bank’s core system was challenging part in past, but in today’s modern origination systems all needs gets solid integration with title, flood, auto-valuations, insurance, appraisals, etc., with real-time, two-way communication where applicable. The LOS should be fully integrated to eliminate the need to manually enter data or browse out to third party Web sites. The days of manually re-keying data for these providers and printing hard copies for safekeeping in the file should be well behind us.

Account Opening

Another cost of entry for an LOS provider is the ability to offer new account opening at the time of loan application. The ability to capture an applicant and get him into a new deposit account (and/or cross-sell) is critical. The system should be able to fully support customer verification (field of membership for credit unions).

To stay competitive and reduce costs in this difficult environment, banks needs to focus on automating their business processes and business rules so that they can streamline and optimize their loan origination operations.

How Insight Consultants can help you?

Achieving efficiency in loan life cycle management has been a challenge.  Insight Consultants proved to be an expert in the loan origination software development. We have set a milestone in its journey of technological leadership by successfully developing a flagship Loan Origination Software ‘CreditCore’, for one of our clients. Our solution is completely cloud hosted web based application which ensure a better experience to its users. It supports decisions across the entire retail lending lifecycle by automating origination and decisioning workflows, assesses credit risks, calculating pricings and manages the integration with third party data providers. Our LOS is very much adaptable and responsive to the extent that organizations can independently run most of the changes without too much dependency on us.

We know that the Banking processes, as well as, the information needed are unique. Compliance is stringent and that the needs of bankers are different. We understand that one size does not fit all and each LOS brings with it, its own set of “quirks”. Each “Off the Shelf” solution will not fully meet the needs of the customer. So, we will collaborate on the best solution that will work best for your business.

The ever-changing, heavily-regulated, and competitive landscape of the mortgage sector demands solutions that are highly flexible and will provide organisations with the kind of operational agility required to not only achieve business objectives, but also ensure regulatory compliance. At Insight Consultants, we recognise and understand the challenges the mortgage industry faces, and we harness our technical expertise and industry experience to build and maintain next-generation lending platforms and business solutions across the mortgage lending life cycle. Our in-depth mortgage industry experience helps us to craft flexible solutions that keep up with industry trends and organisational objectives.

We have technical expertise in building cutting-edge software applications for both small mortgage lenders and medium financial product companies, which uniquely positions us to help deliver desired results.  We look at a client’s business problem in a systematic manner that eventually gives both, Insight Consultants and the client, a clear view of what’s required and why, what needs to be done about it, and how its impact in your organisation can be measured for success. We help you get a sense of your business, through Radical Rooting, our home-grown approach to help businesses place premium on the future value of a solution or idea before counting costs.

Reach out to us to maintain a competitive advantage in the loan cycle management

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