Lending is an essential activity for financial institutions including Banks and NBFCs and should be fairly simple to manage. However, it is full of hassles in organizations that use traditional Loan Management Software. This is because outdated software lacks automation capabilities that make the process complex.
As the customer base of an organization increases, it should look for ways to streamline the lending process. Implementing an advanced Loan Management System helps in automating the entire loan lifecycle and solves most of the lending challenges including slow loan approval, NPA recovery, EMI Scheduling, etc.
Institutions can address most of the challenges through integrated Loan Servicing Software, here are a few of them:
Centralizing System
Banks and NBFC’s use calendars, spreadsheets, and notebooks to monitor sales opportunities. However, since there is a lack of a centralized system, users face inconvenience in switching apps. Moreover, since traditional systems lack automation and forecasting capabilities, the lending process is often cumbersome. An integrated Loan Software provides institutions with the capabilities they need to keep a unified view of all lending activities.
Optimizing Loan Origination
The process of loan closing can take months in financial institutions as it has to be passed from business development officers to analysts, and senior officials. This leads to a substantial delay in loan approval adding to the inconvenience of a customer. A Loan Management Software like LoansNeo captures customer credit scores, previous bank reports, and filters out the most suitable loan requests. Since the workflow is automated, organizations provide fast loan approval.
Monitoring Customer Journey
In traditional Loan Management Systems, institutions are not able to view loan requests, lending status, track leads, and forecasts all at one place. Modern Loan Servicing Software built on Salesforce allows users to keep track of new prospects as well as existing customers. By leveraging visual charts, graphs, auto-generated reports, real-time analytics, and payment insights users can make decisions in a quick time frame and engage with uses on various social platforms.
Bottomline
Lending is a day-to-day activity for financial organizations. Institutions that rely on manual practices or use traditional Loan Management System should incorporate advanced lending software. Damco’s LoansNeo is one such software that leverages advanced analytics and smart automation capabilities which make customer acquisition and loan management easy jobs for lenders.
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