Evaluating Lending Software Fundamentals in a Challenging Market

In recent years, the auto loan industry has adapted and weathered serious challenges to overcome issues such as stay-at-home orders and inventory shortages. The market is currently facing labor shortages, rising fuel costs, inflation and soaring interest rates, all of which have a constant impact on sales. This is an industry that has proven to be resilient, in large part due to the increased adoption of automation.

The sustainability of the industry is even more remarkable given the pace of change. Many lenders adopted new technology and business practices as quickly as possible. Few had the luxury of introspection or long-term study.

As we continue to grapple with talent shortages, tight budgets and a possible economic slowdown, lenders are going back to basics and really providing the features that keep their software competitive and efficient as the market continues to evolve. It is important to check whether State-of-the-art lending solutions increase efficiency, enable lenders to optimize talent and resources, and help them maintain an edge in challenging situations. But not all systems are created equal.

Save time with efficient software design

Lenders may find themselves in a better position to determine whether loan origination software (LOS) and loan management software systems really meet their requirements. Ultimately, lending software should facilitate the lender’s business goals. It should not interfere with efficient operation or be slowed down by design constraints.

Below is a checklist that the solution should provide for maximum benefit.

1. Does your lending solution support the lending process?

The automotive industry has traditionally been siled and disjointed. Loan application processes often followed suit, requiring numerous tasks, different applications, complex documentation workflows, and cumbersome approval processes. Automation should be designed to break down these silos and make processes more seamless and simple.

So, how much work do employees have to do to get the loaner software running? Is it complex and fragmented, like the manual process you were trying to replace? to streamline and reduce redundant tasks for your staff? To truly reap the benefits of automation, software can combine tasks that were previously performed individually and manually to save time and It should reduce human error and improve the user experience.

When users need to move between platforms such as third-party CRM systems, automated solutions aren’t up to the task. Integrations with best-in-class partners should seamlessly deliver capabilities such as digital document storage. Salesforce Industry-leading analytics and compliance tools all in one window.

2. Does your LOS provide quick access to relevant information?

Every loan application requires certain metrics and metrics in order to approve deals and complete funding quickly and accurately. LOS should easily collect and clearly display the data needed for decision making. Speed ​​and accuracy are key. Pertinent information should be readily available to users and displayed prominently. Otherwise, the value of the LOS software will be greatly reduced.

For example, modern LOS solutions not only quickly collect credit bureau data, vehicle value, history, and other metrics, but also highlight potential problems or indicate no problems. is needed. The goal is to make decision making as quick and easy as possible, keep applicants engaged, and avoid abandonment of the process.

This concept of “intelligent processing” uses artificial intelligence (AI)-powered capabilities to not only gather rich data from online sources, but also to highlight information that is important to the user. The best approach is often a combination of good AI and a user interface (UI) that promotes old-fashioned human intelligence.

3. How fast is the software response?

The more clicks LOS removes from the decision-making process, the more satisfying the user experience, the faster decisions are made, the more deals are booked, and the higher the profitability. If LOS makes the user jump through hoops to perform simple calculations and perform simple tasks, it can slow down the system’s decision making.

Equally important, you don’t want a system that slows down during peak hours or requires reports and analytics to be scheduled to meet resource limitations. Who doesn’t want to be stuck with outdated, inflexible software? Cloud-based lending solutions can scale to support businesses of all sizes when designed properly. Choosing a solution that is agile enough to support growth without spending a lot of money and manpower rebuilding new systems is essential.

Lending automation solutions should enhance processes and save time for lenders and consumers. Now that the industry has grown accustomed to automation, cloud based For infrastructure, it’s time to evaluate these systems to make sure they truly maximize performance. This means looking at the amount of time users spend interacting with the system or waiting. The right solution enables lenders to increase profitability while delivering the best possible engagement experience, increasing revenue and building brand loyalty now and in the future.

Sam Heath Chief Revenue Officer of Innovatech SystemsInovatec offers LOS, LMS and direct systems aimed at eliminating friction in the loan process and automating much of the manual work of originating and managing loans.

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