How To Find the Right Loan Origination Software Provider for Your Lending Business?

The right loan software provider can make the daunting process of lending, a relatively easier one for you. Loan origination software helps streamline the complex steps and multiple stakeholders associated with lending and makes the process more foolproof and efficient.


There are quite a few factors that need to be taken into consideration when choosing the right lending software company. In this article, we look at these factors along with a couple of considerations (that are underrated but are a must) when entering the lending industry.



Features of a good loan origination software


When selecting a loan software provider for your lending business, check for the following features as a must-have to ensure you not only enter this competitive industry but grow there, as well.


Domain experience


You might find affordable loan origination software that is easy to adapt and use in the market. However, make sure you go with a provider who has a proven track record and sufficient experience in this field. As a lender, you would want a partner/vendor, who understands the core of your offering and not just the tech part of it. A vendor with domain experience can help you build a customized lending platform based on your specific requirements.

Ease of use

The software should be easy to use and implement by employees. The efficiency of the software can be measured by the amount of time it is saving the stakeholders and therefore freeing them to manage matters that need human intervention. Anything redundant, that can be easily outsourced should be added to the software’s process workflow and streamline the lending process further. Ease of use also refers to clean UX/UI that makes the software a pleasure to work with.


Strict security controls

The lending software should allow access controls to be granted, revoked, or moderated with ease. This is extremely important given the fact that lenders work with a huge amount of client confidential data and only stakeholders who need this information to underwrite the loan or disburse it should have access to it. In a study conducted by PwC’s Global Fintech survey, 56% of the people surveyed believed that privacy and information security would be a threat to the rise of fintech. Taking necessary, proactive steps to thwart any breach is essential.


Easy API plugins

One of the most important must-haves in any lending software is API plugins that help in customizing lending platforms by including easy plug and play integrations. While having a feature-rich platform is a good thing, ensuring the features are well-customized for the lender and their specific target market is even more crucial.


SaaS setup


The ability to access the platform from any browser, anywhere is a must. Easy and quick loan origination is subject to the accessibility of the platform to the various stakeholders. A good loan origination software will ensure the same by providing SaaS solutions for their clients.


Future proof technology


Given the dynamic nature of technology, it is possible that by the time you go to market with your new loan origination software, the industry might have already undergone certain changes due to geopolitical or socio-economic shifts, or unforeseen situations like the dreaded COVID-19 pandemic the world is facing right now. The best way to ensure that new iterations and integrations do not come in the way of smooth loan origination, you should always choose a loan software provider who offers microservice architecture. This not only helps you in cutting down your go-to-market time but also enables you to scale exponentially.

Omnichannel support and Device agnostic

Just because you are a fintech lender does not mean you limit your channels to online lending only. You might find your customer in suburban or rural spaces, among the unbanked population, who are yet to warm up to technology or even have access to it. Good loan software providers enable your customers to apply through whatever channel they are comfortable with. They should be able to apply online, through agents, or through your own sales team. Whichever path they choose, their borrowing journey should be easy and seamless.


Efficient and employee-friendly


One of the markers of a dependable, modern loan origination software is how easy it makes the entire process of application, underwriting, decision making, and disbursement all the time reducing error rates to negligible amounts. Look for a loan origination software that provides an easy implementation of the entire loan cycle right from:


    • Lead/application input


    • Decision and verification


    • Underwriting


    • Workflow and audit management


    • Document management


  • Other features like multi-lingual capabilities, SaaS-based, ACH enabled funding etc.


The increasing importance of compliance and regulation

While the number of loan software providers are steadily increasing in the market, so are the number of compliances and regulatory requirements to ensure consumer protection. Ensuring that your loan software provider abides by these compliances is critical in choosing the right software partner.

Failure to abide by these regulatory requirements could lead to unforgiving penalties that might affect your lending business by hitting hard on the revenues. Staying on top of new rules and regulations and weaving them into the loan origination system can help you churn out loans quickly while ensuring complete compliance.

Here’s what you need to look for in your loan software provider when it comes to compliance and regulations:


Built-in compliance rules


You can have the essential compliance rules built into your software. This works even better when you have the option to customize your lending software. This also removes worries of your team missing out on important federal guidelines like the ones laid down by the Consumer Financial Protection Bureau (CFPB).

Lender-specific rules

As a lender, you should be able to build in your warnings and rules into the software based on your business model. This helps further in churning out error-free results and a better borrowing experience for customers.

Audit trails

A version trail for every change made to every document at any given stage should be available, along with details of who made the changes and when. This not only provides clarity to the process and changes made but also brings accountability to the process.




The COVID-19 pandemic has affected the number of loan applications the industry sees year-to-year. Added to that the constantly evolving regulations and compliance requirements have put enormous pressure on lenders. The only way to reduce this pressure and ensure you get the better portion of the applications the market is still enjoying; you will need to have a lending system in place which is not only streamlined but also transparent and compliant. By ensuring that you find the traits mentioned in this article in your loan software provider, you can be assured that you have the perfect loan origination solution in place for your fintech lending business.

  • September 2, 2021