Due to the increasing demand for high amounts of loans by individuals, loan processing has become difficult for banks and financial institutions. The processes involved in issuing a loan such as acquiring a borrower, processing their information, vetting their credit standing, documentation, and lastly approval or disapproval of loan is automated. Loan origination software has evolved and now offers robust solutions and efficiency thanks to leading providers such as BankPoint. This software uses the latest cloud and web technologies to quickly implement all the steps, enhance customer experience, improve decision–making hence eliminating hectic paperwork. Therefore, the automated loan origination system has accelerated all stages of the loan cycle. It gives you the ability to quickly evaluate the applications, carry out the underwriting process, and fund the loan.
Loan origination software equips you with all the tools needed to ensure customer satisfaction reducing processing time. This automated system manages the complete loan application process from application origination till funding. Here are key features of the automated loan origination system:
1. Configuration
Loan origination software allows lenders to configure the software to configure a full set of credit rules and guidelines to be automated. Lenders can also model their own verification training manual and set up decision making parameters based on their own credit policies and programs.
2. Data Entry
The database of loan origination software has made the entry of transferring application information into the computer system as easy as possible.
3. Decision Making
Automation has simplified the decision-making process by applying different rules that applications must meet to qualify for a loan. This allows lenders to focus on higher valued processes rather than brainstorming on making optimal decisions.
4. Loan Underwriting
The loan origination software has user-friendly interfaces that are quick to navigate helping to make faster and more accurate decisions.
5. Verification and Funding
The automated loan origination system establishes a set of verification processes that need to be completed before a loan will be funded. During the verification, it also ensures that the customer has successfully undergone the KYC process. Thus, it is made sure that there are no loose ends on the customer’s side.
An automated loan origination software platform is built to streamline and improve your loan application screening, decision making, verification, underwriting, and funding processes. Below listed are some aspects where you are benefited by replacing manual steps with automated decision rules for your lending practice:
1. Improve the speed and accuracy of loan applications hence facilitating customer experience.
2. Process a larger number of loan applications within a short period of time.
3. Eliminates the chances of human error which leads to faster and better-quality evaluation decisions.
4. Avoids delays and costs associated with paperwork.
5. Regularly analyzes processes and loan performance for continually improving efficiency and profitability.
BOTTOM LINE
Automated loan origination systems allow asset-based finance factoring to modernize the loan origination process and help companies to meet their short-term cash requirements. Automation has drastically increased productivity, reduced costs, and improved the quality and consistency of consumer products and services. Thus automation has hugely benefited the lenders as well as consumers by improving the quality and consistency of consumer products and services. Hence, lenders must indulge in modern loan processing solutions to be successful in the competitive auto lending industry.
Recognize the advantages of automation and get benefited throughout the lending process.
