Today, customers are more knowledgeable and more demanding than ever. They are aware of all the options available to them and, if a lending organization is not able to process a loan application within a desirable time frame, they are quick to switch to some other organization that can very well do so. Banks and financial institutions need to realize that to maintain loyalty customers demand convenience apart from attractive interest rates.
Often banks are challenged by the manual processing of loans, creating spiraling labor costs and backlogs of files preventing loans from closing on schedule. This translates into loss of business to competition. For this reason, many Indian banks and financial institutions are now following the footsteps of their global counterparts in automating their lending processes, covering the entire loan life cycle – from loan origination through loan application process, risk assessment, decision-making, monitoring, and management control of approved loans.
An automated loan processing solution allows these lending organizations to close more qualified loans faster with improved operational efficiency. It virtually eliminates the tedious sorting of both paper and electronic files and dramatically minimizes the costly manual data entry.
The key benefits of an efficient loan origination software include:
- Reduction in processing time by
- – Optimal work distribution
- – Immediate identification of bottlenecks and deviations
- – Parallel processing of loan application documents
- Greater customer satisfaction through quicker response and new product offerings
- Efficient document management and tracking of status across the bank
- Improved performance monitoring using audit trails and ability to drill down to granular details
- Minimized manual entry of critical loan information
- Enhanced accuracy of data entered into the loan system
- Better compliance with regulatory requirements
- Reduced turnaround and processing times
- Easy handling of fluctuations in loan volume
Thus, automation enables lending organizations to process more qualified loans each day – and at a lower cost per loan – providing these organizations the much needed advantage to stay competitive, in a dynamic business environment.