Essential Features that a Lending Software Solution Must Have
The global lending market is growing at a steady pace. The United States Digital Lending Market is expected to reach a CAGR of 11.4% during the forecast period (2021 – 2026). The United States consumer digital lending market is expected to grow significantly. (Sources )
Automation and digitization have revolutionized the lending industry to a great extent. Latest features and advancements can be embedded as per the customer needs and requirements utilizing the trending technologies, including machine learning, artificial intelligence, big data, and others. So, to stay ahead in the market and cope with the competition, various banks and NBFCs are looking forward to optimizing and upgrading their legacy system.
As with the availability of so many lending solutions, it becomes a complex task to choose the best lending software according to needs and requirements. In this article, we will provide an overview of the essential features you should look for when choosing a lending software solution.
Flexibility and Customizability
Today’s borrower is the one who needs flexibility and customization in choosing every aspect of financial products. According to the borrowers, the solution must be highly customizable and flexible to meet their customized demands and needs. Also, apart from the borrowers, the loan transactions process involves various teams such as branch bankers, mortgage loan teams, referral partners, and others. So, the lending software solutions should have an interface that can cater to the needs of borrowers and the several stakeholders involved.
Hence, flexibility and customizability are the most prominent feature you should look at.
The lending industry involves multiple processes. In the legacy system, each software process tends to work in isolation. Each process is designed for only one part of the entire lending value. Overall, it led to an inefficient and slow process as it consumes a lot of time.
Thanks to automation and digitization in the lending industry, the scenario has improved significantly. A comprehensive and robust digital lending platform combines a series of components and systems to move loans from application to close. Some of the features that can be integrated into the lending solutions are eKYC Seamless Integration, eSignatures, Integration with Current MIS or ERP Systems, Digital Payment, etc.
So, while looking for the best lending solution, always ensure that the solution offers flexible integrations.
Generally, the lending industry faces two common challenges, i.e., High Turn Around Time and Errors in the documentation processes. Automation in the Lending industry plays a major role in solving these challenges. Many repetitive tasks can be automated in modern comprehensive lending software, thus maintaining efficiency and reducing the high turnaround time. Also, modern lending software should support data-driven workflows powered by automation.
As the market demands are continuously changing, you must ensure that the lending software solution keeps up with the changing market demands while selecting the right lending solution. The solution must receive continuous updates and improvements to make it future proof.
The solution should be cloud-based as a cloud-based solution possesses several benefits over on-premises software. Some of the benefits are quicker implementation, secure access from virtually anywhere, high scalability, and minimal functional costs.
Lending software development firms must configure the digital lending platform to meet clients’ requirements and needs. The software should be effortlessly configurable by the users and not take too much time and effort. Also, it would help if you kept in mind what specific requirements and specifications you need in the lending software solutions.
I hope that this article will surely make you aware of the core requirements you should look out for a while selecting the best lending software. Apart from these core requirements, you can look out for other requirements, like Responsive UI and UX, performance analytics dashboard, etc.