Empowering Your Lending: Customizable Loan Management Systems

Loan Management Systems

Empowering Your Lending: Customizable Loan Management Systems

Date published: 20 Mar 2018

Table of Contents


Loan Management Systems is the backbone of a lender's operations. So many LMS vendors in the market offer various out-of-the-box features in their Loan Management Systems. Most of the features were initially created based on their experiences with lenders they are engaged with. Some of the features suit you, while others may not. Some might be relevant, and some might be obsolete by now. Therefore, while selecting vendors for an LMS, a critical aspect that lenders should consider is that not all lenders are equal. Hence, only some features should be similar to those of an out-of-the-box Loan Management Systems.

Challenges with Out-of-the-Box Loan Management Systems Solutions

Differentiating Features: Out-of-the-Box vs. Configurable vs. Customizable

Out-of-the-box LMS will only meet some of the business processes and workforces envisioned by a lender because it does not fit them. There is a possibility to have some workflows, processes, and templates configured to align with some of the specific requirements. However, there will be differences between what they want and what is being offered. Even if reconfigurability exists in the legacy loan software, they are constrained. Lenders have little choice but to compromise their processes and workflow to align with one of the popular legacy LMSs in the market. Despite many shortcomings and high costs, lenders still go with the legacy loan software because the legacy LMS are widespread and have been in the market for a long time. Furthermore, lenders are hesitant to venture into new Lending solutions in the market.

Unveiling the Hidden Differences in Lender Requirements

An ideal Lending Management Software should blend out-of-the-box, configurable, and customizable features, thereby offering the flexibility for the lenders to incorporate their unique requirements.

Constraints of Legacy LMS Platforms

Before going further, let us understand "Out-of-the-box," "Configurable," and "Customizable" features.

Out-of-the-Box: Any feature or functionality that comes directly as part of the LMS with built-in workflow, process, tools, templates, and best practices provided directly by the LMS Vendor.

Configurable: Any functionality that can be created by the lender using built-in workflows and features of the Loan Management Systems offered by the vendor. To be considered configurable, functionality should be forward-compatible with future releases.

Customizable: Any functionality that is not available and that cannot be created by the lender using built-in workflows and configurations of the Loan Management Systems. Lenders have the option to have a dedicated instance with features that are tailor-made for them.

Introducing SparkLMS: A Solution for Flexibility and Freedom

On a high level, an out-of-the-box solution is suitable for all lenders. However, the hidden differences in the specific needs of lenders can dramatically change the ratio of out-of-the-box features to configurable features to customizable features in an lending software and can majorly impact your operations and cost.

Most legacy LMS platforms don't allow customizations to meet lender's specific requirements. They are unwilling to allow free access to the lender's data. Lenders' critical competitive advantage is their unique offerings. Suppose the LMS they use fails to deliver unique features specific to each lender. In that case, the lenders spend more on other means to differentiate themselves from different lenders.

What if they have an LMS that allows them to configure every part of the lending life cycle? What if they choose an LMS that will enable them to incorporate their features and tailor their instance to their specific needs? What if the LMS they use offers them the ability to access their data anytime? What if their Loan Management Systems is scalable enough to grow with their portfolio needs? The answer is SparkLMS. YES, SparkLMS offers lenders flexibility, feasibility, and freedom regarding features, functionalities, and data.

Thanks much for taking the time to read through this article. If you are interested in a demo of SparkLMS, write to us at [email protected]