What is Loan Servicing Software?
Loan Servicing business is made of checks, balances, due diligence, and customer relations. It is very difficult to keep together all the services in one place or application. Luckily for today’s business people, there are loan servicing software systems that support and automate all the services.
Navigation of the software is very complex and are always tricky. Many features are not needed by most of the users, so it is necessary that the users pinpoint the exact needs and align them with the specific service provider offerings.
Loan Management Software
Loan servicing software automates the life cycle of the loan. The life cycle includes originating, credit decisions, payment processing, collections, accounting, and reporting. Besides loan cycle management, the software also supports financial product creation and management.
Features of Loan Servicing Software
1. Loan Origination: Scope for creating numerous loan types with a combination of various payment types, interests, and fees.
2. Client Management: Obtain the credit score of the client by using the credit checking option.
3. Profitability and Revenue Tracking: Monitor and Report on the status of private investments.
4. Analytics: Automated report generation and the option to add the desired analytics to the dashboard.
5. Delinquency(Payment) Management: Set automated payment options and allow multiple payment methods.
6. Compliant Data Security: The software gives high security to create, store, and, share the information between client and investor.
7. Lead and Sales Acceleration: It is easy to identify the potential customer.
8. Electronic Signature: To gain the trust of the customer, you need to provide the data with electronic signatures.
9. Investor Management: You can monitor and prepare reports on private investments and funds collection.
Loan Servicing software is generally tailored made according to the needs of the user or a business. This means the software is made based on the kind of loans provided to the customers and also the size of the lending company. The other features, like Marketing, document storing, and management, are the main reasons for the loan servicing software to be very costly. Most of the vendors also show demos to the potential customers and know what is needed by the client. The demo is also used to get a clear idea of the price of the product.
The prices of the software vary depending on the various needs of the client. If additional features are added, then the price of the software also increases.
Benefits of Loan Servicing Tools
The main benefits of the loan serving software include accuracy, automation, and the efficiency that they provide. Helps in automating the crucial and even the day to day routine tasks to reduce the risk of human error. The transparency in the software allows you to be informed of the business decisions taken across the entire operation.
The potential value and benefits provided by a loan servicing company can be apparent, but many issues should be considered when deciding on a system. For example, most of the loan service software provides various levels of customer relationship management, which might not be useful for the client. So it is essential to analyze the needs of the customer and decide on the software features that can be accomplished by the client.
Deciding the Software
Loan Servicing software can turn your business with efficiencies and also help the organization using your software. But it is essential to see that the service software are fit for the specific needs of the industries. Consider some important points that help you to choose the right tool that meet your business requirements.
Based on your business needs, you can choose a loan servicing system that automates loan processing to save time, improve productivity and sales. At Golden Omega, we offer loan servicing software and add-on modules for direct lenders, which provides the above-discussed features and benefits. We offer a Free Demo of all our products. Contact or call us at (916) 939-7083 to discuss more details or for support.