Alexa Benefits of Automated Loan Management Using Alternative Lending CRM

Benefits of Automated Loan Management Using Alternative Lending CRM Software

CRM | by Patricia Jones

One of the main characteristics of modern cutting-edge technology is that just about everything can be easily automated nowadays. This includes shopping from restaurants, reserving car rides, to CRM tools, whereby automation is a technology that has brought one of the most common changes which have been felt in any business.
And so the various branches of alternative lending, fintech and funding are no exception to this change that has happened in other industries across the world.
Now an automated loan management system like an Alternative Lending CRM has a number of significant advantages over legacy lending platforms.
In fact, the use of modern cloud-based technology has helped modern funding software solutions to provide superior customer experiences, eliminated paperwork, improved decision-making accuracy, and more.

In 2008, only 12% of businesses used cloud-based CRM - This figure has now increased to 87% - SuperOffice (2020) Click To Tweet

Rather say CRM for Alternative Lending industry has capably streamlined the entire workflow and processes right from originating, underwriting, and servicing of Alternative Loans, Peer-to-Peer Lending, Merchant Cash Advance or whatever funding verticals that you may think of today.
Here are some of the key benefits that businesses can find by replacing manual steps with cutting-edge automation, gathering performance data on all aspects of your lending processes, and transforming paper into digital formats:

• Improve the speed and accuracy of submitting loan applications leading to better user experience

• Enable processing of a larger number of loan applications with existing human resources

• Cull down sources of human error for quicker and better-quality evaluation decisions

• Eliminate delays and cost associated with paper-based traditional processes

• Establish auditable, predictable and repeatable processes that support compliance

• Analyze loan performances with the objective to continuously improve efficiency and profitability

Therefore, unlike traditional solutions, that are often a mix and match of unconnected and outdated systems, each handling a single element in the processing workflow of the funding processes, modern loan management solutions like Alternative Lending CRM tools aids firms to attract and close more deals, accelerate the underwriting process, reduce errors, generate more pricing options and finally ensure greater accuracy, helping funders to earn a more professional reputation among brokers, syndication partners and borrowers in the marketplace.

Key Benefits of Automated Loan Management using an Alternative Lending CRM software:

Better Loan Processing and Results

In the alternative lending industry for each origination, the loaning organization collects a plethora of documents, information, data point, which even includes face-to-face interactions, fax, emails, or upload of several documents through dedicated websites.

Now all these elements of the loan disbursal process must be added carefully to the system, tracked and thereafter thoroughly reviewed against all the information provided by the loan applicant and other third-party sources.

An all-in-one CRM is a technological marvel that can simultaneously process every document and also integrate third-party sources to provide a quicker and more reliable solution for these workflows.

Automation found in most CRM for Alternative Lending companies even decreases manual work associated with notifications since every application in the loan disbursal process in various stages requires response or notifications to be sent to the applicant, which a CRM can automatically perform by creating triggers that are populated with loan-specific information using a variety of notification templates pre-created inside the software.

Improved Speed to Completion

Using intelligent business growth technology solutions, such as automated data population, smart content recognition, document reviewing and verification can be considerably reduced, which can speed up processing and there shorten the loan disbursement time frame.

Automation build in Alternative Lending CRM tools can also improve application evaluation and loan decisioning dramatically as it helps in eliminating repetitive manual steps that are best executed once done digitally only allowing human expertise to be applied where it works best.

Better Tracking and Transparency

Just with a couple of clicks on the automated Alternative Lending CRM solutions can prepare a comprehensive view of all documents that have been received, flagging documents for follow-ups when the applications are in their approval process. That in contrast document collection and tracking using manual efforts may prove to be an extremely cumbersome endeavor while working with paper-based checklists or verifying things from a lone officer’s email account.

Scalability and Growth

The right CRM for Alternative Lending companies even reduces training demands and risks, helping lenders to more quickly and affordably scale to meet peak season requirements.

This reduces the alternative lenders to save on overhead costs associated with ongoing training.

In other words the more you eliminate manual processes and streamline your lending business, the more volume of loan applications one person can handle, which implies that by implementing an easy to use CRM for Alternative Lending businesses, you can dramatically increase your deal volumes without adding extra employees in your organization, or add more resources that can let you increase your deal flow just as much.

Finally, as cloud-based CRM for Alternative Lending industry can be implemented and used from anywhere, this will help your organization to eliminate all types of restrictions, such as geographical barriers or overcome the obstacle of only being able to log-in from a certain machine.

Moreover, since the lending process and data can also be shared among your teams easily using a CRM software, adding new team members and onboarding them becomes faster once you use a CRM for Alternative Lending without slowing down the train.

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