You are currently viewing Synergy in Commercial Lending: How Tech Integrations Elevate Lending Practices

Synergy in Commercial Lending: How Tech Integrations Elevate Lending Practices

The process of commercial lending used to be lengthy and complicated. It used to be extremely manual when not working with automation that can now complete several time-consuming steps. In a fast-paced world worth an estimated $2.77 trillion in the U.S. (according to Statista), efficiency and accuracy are more crucial than ever.

Today, we’re seeing digital platforms and software play an increasingly significant role in automation with loan origination, credit underwriting, credit approval, loan servicing and data analytics. As advancing technology continues to be a conduit of business for commercial lenders, lenders will rely on seamless integrations between different software. When multiple systems connect to one another they provide a more comprehensive solution for lenders to more easily manage all aspects of the lending process. Through integrations, loan application, credit approval and management, payment disbursement and collection, reporting, tracking, and a host of other functions are put together all in one package. Plus, this allows technology to complement each other, as one solution might be better at one aspect of the process while another is stronger at another aspect.

Facilitate Better Coordination

Commercial lenders used to struggle with using different systems that didn’t talk to one another. There also used to be a lack of coordination between the various departments involved in loan management. Having one centralized platform now where you can access everything you need eliminates the headache of going back and forth to different systems. It enables lenders and credit teams to work together in real-time to ensure all team members have access to the same information. It fosters better communication and coordination.

Grow Your Business with Better Solutions

Having access to everything in one place not only benefits commercial lenders, but also their borrowers. Neither party wants to waste their time with manual sending and receiving of documents and information or import or export of data. Both expect a fast and easy process. Business owners want to be able to apply and get approved quickly to meet their cash flow needs. Lenders want to provide an easy way to work with them and an easy way for their team to take on, approve and manage clients and their financing needs. Being able to provide speed and convenience to borrowers has become one of the main things that sets lenders apart. With the right system, lenders can give borrowers a good customer experience. With happier customers and quicker onboarding, lenders can simply do more business. They can grow their portfolios in a very competitive environment.

Gain Real-time Insights into Borrowers’ Financial Health

The loan process has come a long way from when people used to have to physically walk into a bank to complete the necessary paperwork. Now software can directly connect to thousands of banks at the point of origination or anytime and extract read-only data. Loan origination software can also connect to borrower accounting systems. Through these integrations, lenders automatically get a snapshot of cash flow, financials, and bank transactions. They can confirm that the bank account owner identity corresponds to the borrower. All of this is done in real-time and offers greater visibility. And by eliminating manual work, resources can focus on revenue-producing work rather than manually scan bank statements and financials.

Access to accurate credit information is also extremely important. Integrations with reputable credit data such as Experian allow lenders to access up-to-date credit scores and trade histories. Lenders can automatically generate business and personal credit reports, and background search results, such as people search, criminal search, bankruptcies, liens and judgments. An automatic credit decisioning solution can also auto-score the borrowers based on the unique risks of each lender. Loan underwriting teams have all the information they need, and lenders gain valuable insights into a borrower’s financial health for better decisioning and mitigating risk.

Eliminate Unnecessary Paperwork for Commercial Lending

One of the greatest time savers across all industries has been the introduction of the E-signature. People no longer have to print out their paperwork, manually sign, scan and return it. Integration with an E-signature solution ensures secure and legally binding transactions while reducing operational costs and environmental impact. Lenders can track all documents sent from the loan origination software and send documents to single or multiple electronic signature recipients. They can even leverage intelligent routing to select multiple recipients all in one step even if receiving separate documents. Lending disclosures can also be automated, where the loan origination software detects the state the business is operating from and is formed in, and automatically send out the mandatory disclosures, saving lenders time and reducing their risk.

Facilitate Seamless Transitions

After a loan has been approved, borrowers enter the loan servicing phase. Integrating the loan origination system with loan servicing software enables a smooth transition of borrower data. It also makes sure payment processing and customer support continue seamlessly.

Provide a Better Customer Experience

Effective customer relationship management (CRM) enables lenders to create long-term relationships with borrowers. Integrations with CRM software help lenders store customer data such as contact information, products used and interactions. They can schedule appointments, send custom emails or respond to social media posts. With all this information in one place, lenders can better understand their customers and provide them with personalized experiences.

Choose Software with Full Functionality

When looking for the right commercial lending solution, it’s best to choose a cloud-based loan origination system that offers integration capabilities to fully digitize your processes and enhance productivity. Decipher Credit features open APIs and Webhooks that enable lenders to connect to multiple core systems, CRMs, operations systems, loan servicing, payments and more. Decipher can seamlessly connect with many systems to create a complete, end-to-end solution for lenders. Our partnerships with industry-leading tech companies support core steps in the process. Click here to schedule a demo to check out our full functionality.