Five features of the best lending software solutions

Automating and digitizing lending processes is crucial to gain momentum and grow in the ever-expanding lending market. The current lending market is not just limited to traditional banks. A quick look at the market will show you the burgeoning numbers of alternative lenders, peer-to-peer lenders and credit unions competing for a slice of the market.


To stay ahead and swim above the competition, it is critical that lenders ensure that their lending software technology is easy to use both in-house, as well as for the end-users, i.e., borrowers.


Although the core function of all lenders is the same; lending, the market they cater to, the workflow they follow, the size of their business, and other such factors determine what kind of lending platform will suit them the best.


As such, the “one size fits all” feature is not a big winner here. The best lending software solutions are ones that meet the lender’s particular business needs. In a market, ripe with fintech solution for lenders offering some of the most cutting edge lending software solutions, finding the right vendor for your business is not a cakewalk.


The digital lending platform market is growing at a 20% CAGR (2019-2025) and set to hit the US$17 Bn mark by 2025. – GM Insights

In this week’s article, we talk to you about 5 features that you must check off on your list when you are searching for the best software solution provider for your lending business.


5 Key features of the best lending software solutions

Key Feature#1: Customization

Loan transactions don’t just occur between lenders are borrowers. There are several other parties involved such as loan referral partners, mortgage loan teams, branch bankers, etc. Therefore, having a singular interface for the lender and borrower alone will not be enough to make the lending platform its true-to-word digitized and automatized self.


The interface of the lending platform should be created such that it can wholesomely cater to each of the above-mentioned stakeholders in the lending process. Customized dashboards for each stakeholder can help ensure on-time task completion, be it application management, following up with customers, or collaborating with loan referral partners with enough transparency.


Lenders should specifically look for lending software technology that supports such role-based workflow that in turn reduce turnaround time for loan origination, thus providing lenders with shorter loan cycles.


Key Feature#2: Integration

For a vastly siloed process like that of lending companies, finding the right lending software solution that helps them remove the complications of multivariate workflows and bring consistency through in-house and vendor integration is quintessential.


The right kind of lending software solution for your business will fit in like Lego blocks integrating upstream and downstream systems including core banking systems, CRMs, data verification providers, LOSs, pricing engines, and document generation providers.On one hand, they will be modelled to perfectly fit the legacy systems that were in place early on and at the same time, they form the new foundation that allows constant change and improvement through continuous software updates that help lending companies stay ahead of track.


In short, the right kind of lending software solution will be like your bridge between the old and the new.


To find the kind of lending platform that supports this need, look for ones that offer API integrations. Need for custom integrations helps lending software vendors understand the unique need of their lending partners and create APIs right from scratch.


This will let users continue using their legacy lending software now empowered with the latest APIs, UI, and UX, and also help them build a strong foundation that will let them grow, evolve, and move ahead along with the changing needs and demands of the lending industry.


Yet another kind of integration that is critical when it comes to lenders is having continuous access to data providers, both financial and consumer, whose data play a significant role in not only underwriting and establishing loan terms, but also, in creating automation using machine learning.


Data is extremely important in helping lenders make informed decisions regarding loan terms, interest rates, and reduce their risk while maximizing revenue.


With the right integrations, underwriters can verify and access information on creditworthiness through just a few clicks within the same lending platform, without the need to sign into a third-party platform.


So when choosing the right lending platform for your business, look for API integration features/possibilities with data providers you are