Legacy banking and lending technologies continue to plague the bottom lines of financial institutions resisting digital transformation. In many cases, inefficient or limited financial technology is placing a cap on the loan volumes lenders are able to handle, while also creating additional operational costs that could be easily addressed through modern solutions.
Research suggests that a flexible, scalable lending software platform could increase potential loan volumes by 15-20 percent for the average lending institution. Meanwhile, operational costs could be lowered by 20 percent, resulting in a massive gain in profit margin that would completely offset the cost of this transition.
Lenders resist new tech adoption for many reasons: up-front costs, training challenges, and a preference for the existing user interfaces, however limiting they may be. But Decisions offers a better alternative that lets those companies have their cake and eat it, too. Here’s how.
Today’s lending institutions handle a wide range of loans, including different loan types that may require specific and complex workflows. Loan origination software (LOS) solutions are often fine for managing traditional loans for consumers and businesses. But they lack the complexity and customizable features needed to handle loans and other financial services for corporate acquisitions and mergers, private equity financing, and other specialized lending services.
Decisions is capable not only of creating these highly specialized workflows but also of enabling fast deployment of these workflows so lenders can adapt to their customers’ evolving needs. Faster and more efficient workflow development leads to faster loan processing, which reduces operational costs and increases productivity.
Although Decisions can serve as a full replacement for LOS software, many lenders aren’t looking to ditch their legacy solutions entirely. Instead, they may be interested in using Decisions to integrate with an existing LOS and provide functionality and customized workflows to supplement their current LOS interface.
Decisions makes this easy, allowing you to add workflows and case management functionality into any step within your LOS. You can retain the same features and user experience you have always enjoyed, while adding the modern solutions you need to stay current and adaptable to your customers’ needs.
Lenders face broad regulatory oversight that needs to be accounted for in any lending software that manages consumer data and/or lending practices. Whether it’s residential mortgages, rules related to selling insurance, laws set forth by the Consumer Financial Protection Bureau, or other federal and state regulations, lenders can’t use software that puts them at risk of violating these rules.
The business rules engine packaged within Decisions gives lenders total control over the rules and operations of the software, allowing you to set as many complex rules as you need to ensure regulatory compliance in any scenario that the decisioning software may face. Business rules make it possible to customize Decisions to meet exactly the demands of any regulations you must work within.
Better lending workflows enable faster loan processing and better outcomes for your customers. But a well-designed lending solution also improves collaboration and communication within your company, which in turn supports better communication with customers as they wait on approvals and other tasks to be completed.
By providing better, more efficient service, you’re able to be more responsive to your customers’ needs. And by adopting lending solutions that can be customized to any need, you’re better able to provide any service your customers may be seeking.
Lending and finance companies have been slow to let go of their legacy banking technologies, but new platforms like Decisions allow them to modernize their infrastructure without embarking on a wholesale change to their internal software.
Learn more about the benefits of Decisions in lending by downloading our Lending Whitepaper.