Do you know only 50% of big and 38% of small banks use digital commercial lending software? These stats are as per the records of ABA (American Bankers Association). But why? Clearly, because these softwares automates the whole process of loan origination including calculating cash flows, loan tenure, tracking collateral etc.
If you are into finance or lending business, this software can take away many responsibilities from your shoulders. Thinking of having one? Well, there are plenty of commercial software vendors in the market to confuse you. To choose the one that serves you with best features, follow these three essential tips:
#1 Find Your Needs Before The Software
Before diving into the software search, make a list of your needs that your software will serve. Different financial institutions have different requirements. Like, for a bank, it requires a system that can:
- Automate the tasks and tedious calculations to save the time of the employees. They can use that time for other priority tasks, like making valuable communications with clients.
- Renew the terms of loans as per the requirement of customers in real-time.
- Perform an asset-based finance factoring.
- Auto calculates the appropriate collateral for each loan with advanced analysis.
- Manage all the necessary things to prevent loss in revenue and always prefer credit risk modelling.
- Auto-updates itself with the latest commercial loan compliance regulations and make use of most secured data security protocols.
- Provide all the above-stated services at an economical price.
#2: Narrow Your Search
Once you are aware of the requirements you have, start your hunt for the software. However, you don’t need to follow “hit and try” to all the available options in the market. Instead, narrow your search to only the latest and most regarded softwares. The ones that are most automated.
They are the best because:
- They automate the whole lending cycle – from origination to tracking cash flow.
- With them, you don’t have to worry about data entries and thus your loan managers will have more time for customers.
- Such softwares auto-calculates the risks and the benefit ratio with the help of predictive custom equations and specific individual factors. Therefore, you can instantly decide to approve or deny a loan application.
- Most importantly, such softwares can help you know whether you have sufficient funds to allow last-minute funding (requested by a client) or not.
#3 Check Whether the Software is Configurable
Once you found the softwares that offers all the automated services you require, ask the vendor whether you can customize the software or not. It is crucial because it allows you to set up your own authorizations within the system. For example, if certain loans give you more benefit than others, you can prioritize such loans in the system. Simply put, you can customize the software to offer certain exceptions to such loan applications that you won’t offer to others. This way, you can customize every detail of the software to what suits best for your institution.
That’s it for now. To learn more about commercial lending software, check out Decipher Credit official website.