ARTICLE

Essential Things to Consider While Investing in a Cloud-Based Loan Management System

02 September 2020

3 min read

Introduction

Cloud, the buzzword has been around for more than a decade, is now finally changing the course of various industries through development, deliverance, and support. And the latest to join the bandwagon is the fintech lending industry. The fintech industry has come a long way from the manual loan management process through the integration of cloud-based lending management systems.

Cloud computing can transform the financial industry right from its business model to its day-to-day operations. All the shortcomings faced in manual processing can be overcome by integrating an enterprise loan management system.

Apart from being a novel technology, the cloud technology has enabled lenders to operate at much-needed scalability, within budget and resolve issues at a higher volume. The cloud solution simplifies the mammoth process with its varied palette of features in place from loan origination to servicing.


Benefits of deploying an enterprise loan management solution

Time to market

Deploying a solution without much hassle is a plus unto itself. For a digital lending platform of any scale, deploying and launching an enterprise loan management system within a month or two is a considerable advantage compared to creating a legacy system from scratch.

Improved Customer experience and retention

In the case of a manual loan processing system, the trail of paperwork, human errors, and the time consumed for the daily tasks are rampant. These shortcomings can be reduced or eliminated by integrating cloud-based loan management system. Lenders can offer more services to their customers through multiple channels without processing fees or other overhead costs. The loan process is also shorter for the customer and can quickly get their hands on the loan amount, thereby retaining the customer’s loyalty.

Infallible Document Management

Business lending organizations’ and Customers’ data are sensitive information that should be secured with the utmost importance. By employing cloud technology, all the data can be stored in a centralized system with the top of the line encryption. With features such as real-time sharing, updating, etc., all the needed documents are accessed through multiple contact points without any data leakage.

Customer authentication and verification

Authenticating and verifying the customers’ credentials takes up a long time in the manual loan management system. The cloud-based lending system can establish automated IDs, and all the pertaining documents of the customer can be submitted on the individual IDs. This information is cross-checked, validated, and authenticated based on various factors to authenticate the customer’s legitimacy.

Automation

Any lending organization that needs to be on a high-level operational efficiency at all times should be integrated with the Automation process. So combining the cloud technology into the task process will automate the mundane and routine tasks, thereby allowing your workforce to have more time and energy for the critical processes and decisions.


Things to consider while implementing one for your organization

Ease of deployment on any environment

A legacy system may take about months to configure and deploy on all environments. Comparatively, a cloud-based loan management system can be configured and run on almost any environment regardless of the web browser or locations. Vendors can quickly fix bugs, software updates, and other enhancements to improve operational efficiency.

Credit assessment through analysis

Assessing a customer’s credit score is the start of a process that will eventually start from loan origination to loan amount deliverance. In a manual loan system, the process would take days due to disjointed modules on various checkpoints. But through cloud-based, all the data points will integrate and coalesce the creditworthiness of the customer.

Seamless integration with data sources

During the lending process, the sensitive decisions needed to be taken by the underwriting and other modules can be made by the cloud-based data sources. Various factors, such as alternative identity, risk, and valuation data sources, determine the qualified borrowers. With automation in place, the modules are better interconnected to aid the lenders in making decisions.

Short and long term business goal

The cloud-based lending software is equipped to support the business strategy and the long and short-term business goals, thereby facilitating the needed scalability and flexibility of the solution. This is a significant factor determining whether the solution would be the right fit for your organization.

Customer and technology support

Even though your Enterprise Loan Management system probably can run on its own with minimal human intervention, you will need access to a team of technical experts during downtime and errors. This will ensure the smooth process of the solution with no hassles.

Summing-Up

From the above-stated statistics, it is undisputed that cloud technology’s entry has drastically transformed the lending and fintech industry. A varied set of features, benefits, and capabilities can automate the entire loan process and make it simpler with the highest security level. Choosing the right lending software makes all the difference, and this is where Novac technology’s enterprise loan management system comes in. As a leading commercial lending software provider, Novac Technology enhances the digital lending process’s operational capabilities and performances with all the needed business requirements in place. Get in touch with us to know more.

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