Loan Management System is the back-bone of a lender’s operations. There are so many LMS vendors in the market offering various out-of-the-box features in their LMS. Most of the features were originally created based on their experiences with lenders they are engaged with. Some of the features might 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 key aspect that lenders should consider is; not all lenders are equal and hence not all the features should be equal as in an out-of-the-box LMS.
All the business processes and workflows envisioned by a lender will not be met by out-of-the-box LMS because it is not created for them. There is a possibility to have some workflows, process and templates configured to align with some of the specific requirements. However, there will be differences between what they really wanted and what is being offered. Even if there is configurability in the legacy LMS, they are very limited. Lenders have little choice but to compromise on their processes and workflow, just to get in-line with one of the popular legacy LMS in the market. Despite many short-comings and high cost, lenders still go with the legacy LMS because the legacy LMS are popular and been in the market for long. Furthermore, lenders are also hesitant to venture into new LMS solutions in the market.
An ideal LMS should be a blend of out-of-the-box features, configurable features and customizable features, thereby offering the flexibility for the lenders to incorporate their unique requirements.
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/or 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 System 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 System. Lenders have an option to have a dedicated instance with features that are tailor-made for them.
On a high-level, an out-of-the-box solution might look suitable for all the lenders. But, the hidden differences in specific needs of lenders can dramatically change the ratio of out-of-the-box features to configurable features to customizable features in an LMS and can majorly impact your operations and cost.
Most legacy LMS platforms in the market doesn’t allow customizations to meet lender’s specific requirements and are unwilling to allow free access to lender’s own data. Lender’s key competitive advantage is their unique offerings and if the LMS they use fails to deliver such unique features that are specific to each lender, the lenders end up spending more on other means to differentiate themselves from other lenders.
What if they have an LMS that offers them the flexibility to configure every part of the lending life-cycle? What if they choose an LMS that gives the freedom to incorporate their own features and tailor their instance to their specific needs? What if the LMS that they use offers them the feasibility to access their data anytime? What if the LMS they use is scalable enough to grow with their portfolio needs? The answer is SparkLMS. YES, SparkLMS offers such flexibility, feasibility and freedom to lenders when it comes to features, functionalities and data.
Thanks much for taking time to read through this article. If you are interested in a demo of SparkLMS, write to us at firstname.lastname@example.org