Top Features To Consider When Choosing A Lending Management Software

Lending Management Software

Top Features To Consider When Choosing A Lending Management Software

Date published: 15 Nov 2017

Table of Contents

Understanding the Importance of Lending Management Software

In the previous article, "Your Comprehensive Guide to Loan Servicing Software Solutions," we outlined the key points to consider while choosing the suitable LMS for you. In this article, we will focus on the features of a Lending Management Software. Loan Management Software offers myriad features to help lenders efficiently manage their portfolios and nearly every area of their operations. Here is a good representation of some of the key features to look for and why they are essential:

Simplifying Operations with Intuitive Interfaces

Like any other technology, you must train yourself and your employees to use the Loan Management Software. Some are so complicated that they aren't worth a lender's training time and monetary investment. Save yourself the headache and frustration by choosing one with a clean, simple user interface that doesn't have much of a learning curve. Even if many loan management software programs say they're simple to use, try them out or watch a demo first to see how each one functions. Go for the simple, intuitive one that makes life easier.

Customization: Tailoring the Software to Your Unique Business Needs

As many lenders told us, there is no one-size-fits-all Loan Management Software for the short-term lending industry. Loan Management Software encompasses many areas of the lending life-cycle, and customization is critical to getting the most out of your investment. Choose a Lending Management Software that is flexible and modular enough to allow customization according to your business's unique needs. Customization can also expand or limit capabilities like customer portals, mobile apps, third-party integrations, document templates, and add-ons to tailor the Loan Management Software to your business. This way, you pay for what you need, not the functionalities you will not need. An ideal LMS would be easily customizable and easy to pick and choose the tools you use.

Third-party Integration: Streamlining Data Flow Across Platforms

A good Loan Management Software works with all types of third-party solutions to streamline all your data throughout different areas of your lending life-cycle. You don't have to manually export or import data between your Loan Management Software and Website, Lead Providers AC, H Providers AC, counting software, or document repository. The key, however, is to ensure that the Loan Management Software you choose is compatible with the third-party providers you already use or the popular third-party providers in the industry. Double-check by consulting the vendor's website or contacting the vendor to check various integrations. The ideal LMS package must integrate easily with other programs to provide a more comprehensive picture of your operations. In the following article, we will discuss Third-party Providers and Integrations elaborately.

Future-proof Technology: Staying Ahead with Cutting-edge Solutions

Your lending software has to be futuristic and built on the newest platforms available if you want to be at the top of the game as a lender because technology is constantly changing. With the latest technology trends like many JavaScript Libraries, Artificial Intelligence, Chatbots, and Conversational UI, how you will run your lending operations in the coming years will depend on the Loan Management Software you choose.

Scalability: Adapting to Changing Business Requirements

Are you lending in a specific state or a specific loan product? Do you plan to expand your portfolio from one state to multiple states? Are you planning to lend only Online or through both Online and Store-fronts? Do you plan to start with one portfolio and then launch various portfolios? A good Loan Management Software should have features to address such questions. The Lending Management Software should be robust and modular enough to offer such freedom, saving you valuable time and money.

Flexible Deployment: Choosing the Right Hosting Model for Your Business

With cloud-based or SaaS model Loan Servicing Software for private lenders, you may access your data anytime, anywhere, on any device with an Internet connection. If you have an IT team and want the application and data to reside in your servers so you have complete control, ask for it. A good Loan Management Software provider should offer such flexibility.

Mobile Access: Empowering Customers with On-the-go Solutions

Mobile is the way of the future. Generating organic growth in the loan portfolio is getting harder and harder. A customer-focused business model is needed to acquire new customers and retain existing ones. Given that loan products are now essentially commodities, lenders are forced to compete primarily on their platforms' usefulness as opposed to the features of their offerings. Consumers are starting to favor mobile services over web ones and want simple, intuitive platforms. Lenders must allow customers to manage loan terms, interest rates, the loan process, e-sign agreements, transactions, loan history, and even image-transferred documentation from their mobile devices. Every lender should expect the Lending Management Software to have an integrated Mobile App for their customers.

Security: Safeguarding Sensitive Data and Operations

Security is always an important consideration when investing in Lending Management Software. With LMS eventually becoming the core of your operations, it will contain your customers' personal and financial records and become a primary concern. Your Loan Management software should have stringent security measures to prevent cyberattacks and data loss and provide means to access your data during an outage or cyberattack. Look for Lending Management Software with comprehensive security measures covering Physical, Network, and User Security.


In conclusion, only some platforms are equal; compare offerings across different platforms and choose the most closely aligned to your needs. If you are interested in a demo of SparkLMS, write to us at [email protected]