Top features to look in a Loan Management SoftwareDate published: 15 Nov 2017
In the previous article “A guide to choosing your Loan Management Software”, we outlined the key points taken into account while choosing the right LMS for you. In this article, we will focus on the features of a Loan Management System
Loan Management Software offers myriad features to help lenders efficiently manage their portfolio 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 important:
Easy to Use
Like any other technology, you'll have to train yourself and your employees to use the Loan Management Software. There are some that are so complicated that they aren't worth the training time and monetary investment for a lender. Save yourself the headache and frustration by choosing one with a clean, simple user interface that doesn't have much of a learning curve. Note that while many Loan Management Software products claim to be easy to use, be sure to test or demo them yourself first to get a feel for how each one works and whether it fits your tastes. Go for the one that is simple, intuitive and makes life easier.
As many lenders told us, there is no one-size-fits-all Loan Management Software for short term lending industry. Loan Management Software encompasses so many areas of lending life-cycle that customization is key to getting the most out of your investment. Choose a Loan Management Software that is flexible and modular enough to allow customization according to your business' unique needs. Customization can also take the form of expanding or limiting capabilities like using customer portal, mobile app, third-party integrations, document templates and add-ons to completely tailor the Loan Management Software to your business. This way, you just pay for what you need and not for the functionalities that you will not need. An ideal LMS would be easily customizable and easy to pick and choose the tools you use.
A good Loan Management Software works with all types of third-party solutions so that all your data is streamlined throughout different areas of your lending life-cycle. This means you don't have to manually export or import data between, for instance, your Loan Management Software and Website or Lead providers or ACH Providers or accounting software or document repository, thus saving you time that you would have spent performing repetitive tasks. The key, however, is to make sure 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. A perfect LMS offering must work seamlessly with other solutions to give a more holistic view into your operations. In the next article, we will discuss elaborately on Third-party Providers and Integrations.
Future-proof – Technology
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 On-line or to lend through both Online and Store-fronts? Do you plan to start with one portfolio and then launch multiple portfolios? A good Loan Management Software should have features to address such questions. The Loan Management Software should be robust and modular enough to offer such a freedom thereby saving your valuable time and money.
Get access to your LMS data anytime, anywhere from any device with an Internet connection by choosing a cloud-based or SaaS model Loan Management Software. If you have an IT team and you want the application and data to be residing in your servers, so that, you have complete control over it, ask for it. A good Loan Management Software provider should offer such a flexibility.
Mobile is the way of the future. Generating organic loan portfolio growth is increasingly challenging. In order to acquire new customers and retain existing ones, there is a need for a customer-focused business model. With the understanding that loan products have become largely commoditized, lenders must compete on the usability of their platforms rather than the terms of their products. Customers expect straightforward, user-friendly platforms, and are beginning to show preference for mobile rather than online services. There is a need for the lenders to allow customers to manage loan terms, interest rates, the loan process, e-sign agreements, transactions, loan history and even image transferred documentation right from their mobile device. It is prerogative of every lender to expect the Loan Management Software to have an integrated Mobile App for their customers.
Security is always an important consideration when investing in a Loan Management Software. With LMS eventually becoming the core of your operations, it will contain your customer’s personal and financial records and it becomes a primary concern. Your Loan Management software should have stringent security measures to prevent cyberattacks and data loss, as well as provide means to access your data in the event of an outage or cyberattack. Look for the Loan Management Software that has comprehensive security measures covering Physical Security, Network Security and User Security.
In summary, not all platforms are created equal; compare offerings across different platforms and choose the platform most closely aligned to your needs.
Thanks much for taking time to read through this article. If you are interested in a demo of SparkLMS, write to us at [email protected]