It's important to choose a loan management system that covers a wide range of applications. Be it asset financing or mortgage documentation, an LMS needs to provide complete coverage. It should also include financial advancing solutions such as consumer loans or commercial leasing among others. An ideal loan management solution should be efficient in these broad areas while still being affordable. This wide application in various financial scenarios is what makes an LMS software an invaluable resource to the company.
Complex loan solutions and facilities are not favourites among most consumers and rarely do they go for such financial products. To boost account management function and enhance operational efficiency, you need an LMS that is simple to configure and set up as per the business's specific requirements.
The LMS should be such that it meets the needs of the business and its clients. It should also be capable of helping the business meet its objectives. The LMS should not just meet the current needs of the business but should be able to cater for the future needs of the company as well. It must also cater for compound and simple interest rate calculation with ease.
A centralised loan management system brings together data from multiple sources such as digital files and other documents. Such a system ensures that the loan department gets a singular and holistic view of all applications, regardless of where the application came from.
Loans can also be used to update credit score information, and allow the loan department to comment, upload and collaborate information with MFI representatives and branches via the loan management system.
The streamlined and fast way of sanctioning the loan is the most preferred discourse for clients and they are usually quick to appreciate the benefits of this non-banking route. In many cases, it removes the need to sort tons of documents or papers and reduces the cost involved in the process.
The fast sanctioning and approval of the loans is an added benefit to get financial assistance in the event of a contingency and in the process save the valuable energy and time of the clients. Such speed in an institution is an asset and the secret to attracting lots of clients.
The accessibility of the LMS is of utmost significance for processing loans. The system brings together all client data, including links to digital files, enabling a robust business monitoring and review process through authenticated access. This enables financial institutions to access the required files from third-parties at a much faster rate and without having to seek repeated approval.
Technology has changed how we pretty much do everything nowadays. This change is simply unprecedented and shocking at the same time. The civil society fraternity is constantly evolving to keep up with new technological advancements. The MFIs should not be left behind in this rapid evolution and should use their available resources to stay ahead in the tech race. A loan management system can assist them in this endeavour of gaining a technological edge.
During post-application stages, the LMS checks the transfer status and manages the movement of the funds to a client's servicing systems.
Lending company Max Funding say,”an effective LMS should leverage technology to offer the best possible experience of processing and disbursing loans”. They suggest,”the system should also make use of technology to reinforce the non-banking financial institution's client support’’.
Cloud storage is taking over the lending sector by storm. The use of cloud-based storage systems is no longer a reserve for big banks and other huge lenders. These systems are now used by many non-banking financial institutions because of their reduced operational costs, lower capital outlay, and wider range of data sources. These systems have enabled clients to enjoy better services by making processes more efficient, productive, feasible and cost-effective.
A good LMS should function seamlessly with other systems such as an ERP or CRM. It should also offer remote sales team with accurate and up to date data so that conversion can take place smoothly.
All these processes demand that the LMS be linked to third-party application for enhanced functionality of the loan processing activities. This feature enables plenty of data to be auto-populated. This saves on time that would have been used to fix errors and streamline the loan application process.
Micro-services are currently the talk of the town. They have enriched the industry with software solutions that have well-structured operations and interfaces. This technology is commonly referred to as micro-services architecture. It is currently being used in many loan management systems to promote faster, more credible and more agile processing of loans.
App-based service for iPhones and Android devices have become very popular in today's smart-gadget driven world. a mobile application can be extremely useful for a lending institution.
Numerous surveys that have been conducted in recent years have revealed that clients prefer mobile app services because of their simplicity and ease of access. An LMS that provides app-based software support is a clear indicator that a company is dedicated to giving clients the best loan application experience possible. Leveraging these applications can significantly affect your company's overall sales and revenue.
Data security is one of the most controversial issues in today's world thanks to the rapid deployment of technology is crucial industries such as banking. Today, services from healthcare, commerce, insurance and even banking are just one-click away. Because of this, a lot of emphasis is being put on keeping people's information safe and secure at all times.
Cloud-based loan management systems allow real-time creation, access, sharing, updating, erasing and storage of information. One can alter entire loan books with just a click of a button. A 100% secure loan management system is the only way to go.
Diligence managers are made obsolete through the implementation of a loan management system. These workers are no longer needed to peruse through numerous websites and send tons of attachments through email. All results from the loan application process can be easily stored in the LMS database for instant access by authorised individuals.
To sum it all up, an effective LMS can be an invaluable asset and therefore has to be selected with utmost caution. Considering the above factors should help you make a wise and informed decision.