The Advantages Of An Automated Loan Processing System
A modern automated loan processing system has distinct advantages over legacy lending systems. Using the latest cloud and web technologies, it is quickly implemented, configurable to match specific needs, provides a superior customer experience, and improves decisioning accuracy. Automated systems accelerate all stages of the loan cycle.
Superior Customer Experience
Many a lending process begins via the web. An applicant could be at home, at a dealer, or in any web-accessible location. Automation and configurable menus lead the applicant through the process, prompting for required information and providing guidance when needed. The flexibility and power of decision rules verify that information has been entered correctly.
Paper documents, if required, are digitized and securely sent to the lender to eliminate shipping or mailing delays. When automation is applied to the application process, all required information is collected quickly and accurately, and transmitted to the lender for faster decisioning.
Faster, Accurate Decisioning
Automation improves applicant evaluation and loan decisioning. It eliminates repetitive manual steps that are best executed digitally and allows human expertise to be applied to high-value activities. Examples include:
- Decision rules evaluate applicant attributes and provide immediate loan approval for well-qualified applicants
- Decision rule flexibility can guide processing for exception applications, performing certain steps of the evaluation process automatically, and delegating more complex decisions to experienced underwriters.
- No lost or misplaced documents. Paper documents converted to digital images are immediately and securely accessible by the underwriter, so they can review applicant materials quickly.
Analytics for Continuous Process Improvement
In addition to the advantages mentioned above, automation opens the door to analysis of your lending practices. An automated process creates a wealth of process data. Analytic results will show where the lender is already performing well, and more importantly, identify areas for lending practice improvement. With analytics tools lenders can:
- Identify the geographies that send you the best loan opportunities and determine how you might replicate this success in other geographies.
- Determine which borrower attributes have the greatest influence on loan performance and use this insight to attract more applicants with these attributes.
- Discover which loan structures and terms reduce risk default for subprime borrowers.
- Identify borrower characteristics that lead to unexpected delinquencies and implement more stringent qualification steps to reduce risk.
Think of analytics as an essential tool, allowing the lender to gain even greater benefit from an automated loan processing system.
An automated loan processing system provides a better customer experience by making loan applications simple and quick. Decision rules enable a faster, more accurate underwriting process. Analytic tools give you the power to continually improve lending efficiency and loan performance. To effectively compete in today’s auto lending market, lenders need to recognize the advantages of automation and the benefits it provides throughout the lending process.
Contact our experts online to learn how the latest data integration, decisioning rules, and analytics technologies deliver automated loan processing. defi SOLUTIONS provides a flexible, completely configurable loan origination system that is quick to implement and provides analytic tools (defi ANALYTICS) for actionable insights based on process performance.
