A crucial component of lenders’ success, loan management systems have become commonplace in today’s lending industry. Loan management software is reforming the industry, helping lenders save time, improve productivity, and enhance customer satisfaction.
Be it a small-time lender or part of a large established corporation, the lending process has to be effective and efficient, from start to finish. That is where loan management software comes in. The question is, with so many options on the market, how does one choose, and what should one look for in loan tech?
To help navigate the loan servicing software world, we deliver the top 5 LMS solutions lenders should consider. We share insights on what makes them great and what the customers are saying.
Loan management software for lenders automates every stage of the loan lifecycle, from loan origination and underwriting to loan servicing, collection and reporting. These platforms can assist lenders in collecting and verifying applicants’, initiating fund disbursements and monitoring repayments.
Lenders are utilizing loan servicing software to boost customer satisfaction, improve organization, mitigate errors, and cater to a new generation. The LMS becomes a one-stop-shop.
The traditional loan management process is time-consuming and complicated. Loan servicing software automates the processes by offering innovative embedded services, including payments, accounts payable and accounts receivable data, risk intelligence, and reporting as part of a unified offering.
Integrated payment processing solutions have become the way for lenders to simplify the issuance of loans, giving them the ability to disburse funds automatically to customers once a loan is approved. Effective embedded payment solutions provide users with a positive experience every step of the way, from onboarding to final payment transfers. Integrated payment solutions within an LMS ensure a seamless experience, allowing lenders to send and accept payments from one platform. In other words, with simple API integration, embedded payments offer customers a convenient, frictionless experience without leaving the lender's site.
Key takeaway: New payment technology embedded into an LMS solution allows for easy collection, automatic payouts, and a faster onboarding process.
It is time to introduce automation for complex manual processes. No more wasted hours chasing payments, tracking payments, or manually working through NSF reconciliation. Loan management platforms save the company time and enhance customer satisfaction. Not to mention the gains companies experience from a massive reduction in errors from manual data input.
All of these tasks listed above are onerous, time-consuming, and costly. And they all can now be impeccably managed by a software solution.
Lenders and the lending industry are in the midst of a transformation. The world has embraced digital payments, and lenders are beginning to recognize the advantages of digital payments and loan management solutions.
Lenders can set payment schedules in a way that best suits the business, improve cash flow management and reduce annual costs. Missed payments? Not anymore. Automatic fees? Never late.
We recognize that lending software can be confusing, so it’s important to consider your needs as a lender.
Five questions to ask:
1. Do you want to keep your lending in-house or maybe use a third-party solution?
2. Do you prefer automation and cloud technology or old-fashioned face-to-face interactions?
3. Are you concerned with accessibility, or do you need something highly customizable?
4. What limitations does your budget impose on the software search process?
5. Does the LMS platform have an integrated payment solution?
HES is a well-known reliable player in this space. They are a long-term partner of 160 financial institutions in over 32 countries worldwide. They have a good-sized team with over 80 engineers, product innovators, and business analysts.
The company has three key offerings: HES LoanBox - out-of-the-box lending platform with 1-2 weeks time-to-market, GiniMachine AI-based scoring, and custom fintech software development services for enterprise-level customers.
They cater to banks, credit bureaus, financials, and alternative lenders.
Customer Review: (I appreciate) The professional approach of every team member and understanding of your business domain and objectives; for example, business analysts at HES have sufficient experience in banking and finance. Effective project management – meeting deadlines, no downtime. The resulting product is better than expected – extended functionality, and high performance.
Like Mortgage Automator and HES, this software automates every step of the lending process. With TurnKey Lender–their AI-driven platform integrates with 75+ preconfigured partners and can be ready to deploy in days. Awards include Winner Credit 500 Index by Credit Strategy and 2021 Winner of the Software Suggest Awards, among others. They are a big player in the space with over 100 global engineers and over 200 global clients and cater to corporations and larger to mid-sized companies.
Customer Review: Turnkey Lender allowed us to improve our processes and workflows after having to manage our loan program manually for months. They were able to capture all the basic things and features we needed to get some automation started, and we are able to request further customization as needed. It was easy to use and, if we needed assistance, support was immediately available. Our project manager was also very helpful.
Margill has products used in 41 countries by thousands of professionals and organizations, including the U.S. Securities and Exchange Commission, the Department of Justice Canada, and Deloitte. They are known to have sophisticated mathematics. The loan management software is one of their products. They are well-respected globally and cater to all businesses, from small private firms to large corporations. Margill Loan Manager Software as a Service (SAAS) is available on the cloud and a web portal for borrowers and creditors.
Customer Review: Great price. Easy to use interface. Custom loan invoices. Very easy to get customer support when needed.
100% SaaS Cloud-based with a focus on the fintech industry. Loan Pro
has customers throughout North America. One of their standout features: Uniquely built on their own API, LoanPro makes it easy to put data in and get data out, and it's the only lending software on the market that gives customers direct database access. They have an easy-to-use interface and seem to have all their focus on this one loan management software product versus having multiple products for multiple industries.
Customer Review: Easy to implement with well-documented and robust APIs - Modern UI interface compared to legacy loan servicing platforms on the market - Amazing customer support from dedicated account managers who know all the nuances of loan servicing.
Mortgage Automator is a cloud-based CRM that fully automates a private lending business of any size: from document generation, compliance and reporting to helping manage investor relations. This award-winning software has a few titles under its belt, including the 2022 Mortgage Awards of Excellence winner and the 2021 AAPL Excellence Awards, among others. They cater to private lending businesses.
Customer Review: The visually appealing and easily utilized interface combined with well-designed back-end processes has greatly decreased our processing time of new mortgages and provided a much more simple way to track and administer them all from work, home, or even our cell phones. Rapidly expanding its product offerings and ease of use, all the while maintaining excellent customer service and consistently providing helpful and speedy responses to any and all concerns.
Lenders need a loan management system best suited to their needs. A question that often comes up is: Should we build? To some, the vision of developing a custom solution in-house is appealing. It can be perceived as an attractive option to address a specific business challenge in ideation mode. The truth is, that most companies will recognize the heavy workload involved in creating, implementing, and maintaining the solution. There is a lot to weigh in.
Firstly, consider the goals of the business with an eye focused on the long-term strategy. Assume you need Loan Management Software. Loan tech is a burgeoning space, and for good reason.
Secondly, do your research. Reach out to each company for a demo and ensure to discuss technical needs, business goals and interface requirements.
Lastly, perform a contrast and compare. Compare the options, determining the right fit with your needs.
We are very proud of the Loan Management Software partnerships we have built over the last few years. We would be happy to connect you with our incredible partners to help you get started!