The loan origination software market is rapidly growing, and the functionality available today is different from even several years ago. Factors like artificial intelligence, machine learning and changing customer expectations have all contributed to this growth.
With an increase in commercial lending origination software options, the hunt for the best tool can be an overwhelming task. And without any focus in your search, you risk choosing the wrong system – one that creates a less simplified and more arduous process. The best system will not only benefit you, but also your customers, ultimately enabling you to grow your lending business.
In part one of our two-part series, we’re breaking down the basics of where to begin with your search. By the end of the series, you’ll know which questions you should be asking and have actionable tips on how to choose the best software that aligns with your lending business.
Knowing Where to Start
When beginning your search, it’s wise to start with what problems you’re looking for a new system to solve. What are the biggest challenges of your day-to-day? What keeps you from doing more business every year?
Many commercial lenders struggle with the following:
- Redundant, manual data entry and collection
- Slow and inefficient back and forth with borrowers
- Manual and time-consuming analysis of borrowers
- Inefficient document collection processes
- High risk of approving poor loans
- High risk of approving fraudulent loans
- Slow credit approval process
- Reporting requirements for banks and lenders financed by banks
- Different systems that don’t talk to one another
- Other lenders capturing deals from you
- Competitors offering a superior experience
Pinpointing which of these pain points are the most nagging to you helps you build the framework of your search since these issues are often caused by the use of outdated systems that haven’t evolved along with the industry or worse, caused by manual methods that slow you down. Identifying what hasn’t worked in the past helps you outline why you need a new tool to begin with and how you want to improve operations moving forward.
Knowing What to Look for
After establishing your goals as the basis of your search, you can dig into the considerations when evaluating your commercial lending origination software options. Below is an overview of primary considerations:
- Functionality and features
- Integration and compatibility
- User experience
- Scalability
- Security and compliance
- Reporting and analytics
- Cost and ROI
- Vendor reputation
- Implementation and onboarding
In part two of our series, we dive deep into each of these considerations and why they’re so critical to the foundation of your search. We also look at real features of industry-leading tools that can enhance your lending processes.
There may be a number of loan origination software options on the market, but not all are created equal. Once you understand what you should be evaluating, you can narrow down your choices to tools that check those boxes.
Come back to our blog to learn more in part two.
