Loan servicing is an incredibly competitive business. With the vast amounts of loans to deal with, how do you get ahead of the competition? Efficiency is the name of the game.
For loan servicing companies especially for a growing startup, keeping up with transaction processing, record keeping, accounting and all the reporting tasks can be tough, time-consuming and costly. There are two options to go about the business. You can hire more people and increase your labor costs or you can invest in the right loan servicing software that will meet your specific needs as your business continues to grow.
For any smart businesses, there’s no question about it, the latter option is the best way to go. But how do you choose the right loan management software? Here are key considerations to keep in mind:
Flexible management system
Whether you’re new in the loan servicing business or an experienced veteran, what you need is a flexible management system that can provide effective and efficient accounting management. That means looking for a loan management system that includes core family of modules as well as multiple add-on options to suit your company’s growing needs. A flexible system should be able to easily handle simple interest-only loans to complex accounts and large portfolios without any trouble.
Easy to configure and customize
What good is a feature-packed loan servicing software if it is too complex to use? To increase business efficiency and improve account management, you need a management software that’s easy to configure and customize according to your business’s specific requirements. Ideally, you should look for a product that requires one to two clicks for most of its functions.
Business management efficiency is vastly improved when the workflow is simplified. That’s exactly what a good lending management system can do. The finPOWER Connect, for example, is designed to improve efficiency by up to 40%. Clients spend less time on administration tasks because the workflow has been significantly simplified consequently improving the company’s bottom line in a shorter period of time.
Security is another important factor to consider when looking for the best loan servicing software. Because you’ll be managing vital and sometimes critical financial and personal information, built-in security in your loan management software is crucial. Look for a system that includes built-in controls to customize what users can see and access. Some systems even include a comprehensive logging activity data so you can easily ensure users are only accessing information they need to manage.
Comprehensive and enhanced reporting
The best loan management system should also offer comprehensive and enhanced reporting. You should be able to customize or create your own reporting preference as needed. Make sure your loan servicing software include options for daily, weekly or monthly reports. FinPOWER Connect, for instance, includes a Depositors Module that streamlines administrative functions for better efficiency and also provides comprehensive reports and automated tax handling.
One of the most stressful times for any business including loan servicing is the audit season. With the right loan servicing system, you wouldn’t have to worry about federal or local compliance. Come audit time, you’ll have peace of mind because you’re using a management system that meets all the right regulations.
Live software support
Choosing a loan management software with live support is negotiable but if you can find one that offers it, take advantage of that feature especially if you’re new in the loan servicing industry. A loan management system that offers life software support is a testament to the company’s commitment to provide clients a highly efficient system that will significantly impact your business’s bottom line.
There may be plenty of loan servicing companies in the market but there’s always room for growth and more competition. If your main goal is to grow your business as efficiently as possible, you’ll need a scalable loan servicing software that will also grow along with your business. With a scalable software, you’re investing in a tool, which you can use for the life of your business.
Finally, don’t forget about affordability. You should be able to service your clients at an affordable price. Which is why it’s important to look for a loan management software that covers a wide range of application areas. From mortgage to asset financing, commercial lending, leasing, consumer loan and more, the finPOWER Connect can manage all these areas at a cost you can afford.
The Bottom Line
Not all loan management software offer the same set of features. When looking for a loan servicing software for your business, focus on finding a system will specifically allow you to run your business more efficiently at an affordable price.