Respective Solutions for Problems Faced by the Current Online Lending Scenario
There was a time, not so lately, small and medium businesses, even aspiring idea persons relied on the traditional banking systems to get funding for their ideas. The criterion and the procedures were not only complicated but weren’t designed to serve the needs of progressing organizations. On the contrary, huge corporate businesses were their targets and were supporting them in their endeavors. At the same time, small and medium-level businesses were constantly being left behind. However, with the prominent inception of the internet has changed the course of the game. Today, the size of businesses doesn’t matter much; for they can now take advantage of the digital possibilities and reach a wide range of audiences.
Even this digital transformation has transcended the world of funding as well. In fact, the need to depend on traditional banking scenarios for funding has thoroughly diminished, rather businesses have opted to grab the online lending opportunities to bring their ideas to bloom. And guess what! The idea is now considered a massive success and a multitude of organizations and even individuals are adopting the same as an effective funding strategy. Here in this document, we aim to propose some valuable insights, solutions to be precise, for the problems faced by today’s lending industry. Enjoy the read.
Improving the Transparency of the Process
This you can relate to without any doubt if only you are familiar with running a Lending institution. One of the major parts of the whole process is tracking the outstanding opportunities and sales activities. And they often utilize spreadsheets, notebooks, accounting software, and calendars for the same. Even though this is the case, things are much complicated than it seems; for sometimes to extract a single piece of information can steal a significant period of time and effort. Remember, this is how manual tracking is.
Luckily, this can easily be resolved with the help of a centralized system to keep track of progress and offer forecasts. A Lending software gives you access to the customer information, which offer lenders a contact database and a centralized spot for logging conversations. In a nutshell, a comprehensive lending software can drive transparency and quick loan processing, thus help the business provide fast and quality service.
Streamline the Loan Origination Process
Another crucial aspect of the lending process is nothing other than processing and closing loans. In fact, being the most important phase, or may be called as the sole idea of the process, this demands utmost attention. However, manually managing this process can be tedious and confusing, while with the help of online borrowing software, things are a bit easier, at the same time, efficient.
So, why an online software instead of a manual process? If having a software solution, lenders can monitor and track the progress of the loan process at any time. They can utilize their productive time to improve the business and its profitability rather than wasting it on tedious loan processing process.
Track Post-closing Documents
The loan management phase begins immediately after loan closure. Besides, it also involves tracking the documents relevant to the process. In case of not have a proactive process to identify and track the relevant documents and paper works, it will seriously affect the credibility of the organization. No business can afford that happening.
However, by employing an automated, centralized system can streamline the whole process, minimize human interaction and possible errors too. By properly organizing and managing the documentation part, one can elevate the efficiency of the complete process.
Setup an Efficient Loan Review System
Yet another challenge faced by any lending businesses is to maintain their financial information up to date. Imagine if you are running a business dealing with lending funds. Isn’t important to have an efficient system to review the loans, particularly to identify loans with credit weaknesses.
Moreover, to ensure the smooth functioning of your online lending business, the centralized system you employed must identify trends that affect the collectability of the company’s portfolio, also, assign risk grades based on the data in the system. Anyhow, the fundamental purpose of lending software involves optimizing the loan processing and collection process too. Moreover, it notifies the business owner if a borrower fails to update his/her’s financial information, which allows the lender to take appropriate action.
Move Watch-list Credits to Special Servicing
Upon the occurrence of some unexpected events, specifically a breach of the convent, the administration of a loan should be moved from the banker to Special Servicing. In actual, if the loan or the relationship is been considered or above a certain, defined risk level, the loan file, also the collateral and credit documents will be passed on to the special assets group. In other words, the advantages of an automated process do not end with underwriting or even servicing, but continue into portfolio management.
Why Partner With Us?
Agriya has been an integral part of the global software market since the year 2000. Since then, we have been serving the technology needs of businesses, in fact, we have deployed a wide array of niche-focused ready-made solutions to address the unique needs of various markets. The Lend crowdfunding software from our premium business line is not an exception as well. It incorporates everything a millennial online lending business seeks for and is designed to adapt to the market needs. Also, because the solution is open for customization, businesses can modify the script to meet their specific goals and objectives.