[vc_row][vc_column][vc_column_text]4 Minutes Read.
Loan approvals are growing at near-record rates among all types of financial institutions, particularly in small business loans, which is why many lenders are turning to lending solution software. Automated lending solutions can help financial institutions streamline processes and improve customer service by reducing the time and potential for errors in manual underwriting. If your lending business is experiencing any of the following situations, lending solution software is likely the answer you need.
Your loan application and approval volume is increasing …
Small business lending has been steadily increasing in recent years, with loan approvals among all types of financial institutions reaching near-record levels month after month. That volume will only continue to increase as well. According to a recent survey on digital lending, small business loans already make up about one-fourth of all loans, and 83 percent of small and large banks, institutional and alternative lenders and credit unions that do not already offer small business loans said they plan to expand their lending businesses.
… But your underwriting processes are still moving at the same speed
Manual underwriting is a time-consuming process for your business and your customers. Starting with customers having to visit a branch to submit an application and necessary documents, the manual process means information passes through several hands and is perhaps entered into different computer systems along the way, increasing the risk of errors.
As new applications are made faster than they can be processed, the time for a decision becomes longer and longer. Other critical parts of your business could be affected as more of your employees’ time is devoted to underwriting-related tasks; in spite of having more customers, your business is suddenly becoming less productive.
Small business borrowers don’t always fit standard approval criteria
Your underwriters are of course expected to be able to make good judgments about the creditworthiness of potential borrowers, but this sometimes can be difficult with a purely manual underwriting process.
Information from different sources must be obtained, which adds to the already lengthy time processing takes, and leaves you with a very unattractive choice: Either your underwriting process can take longer, which means you risk losing customers unwilling to wait for days or weeks for a decision, or you take the risk of rejecting potentially profitable loans because their applications do not meet a narrower, but easier to manage set of standards.
Data is not available in the same platform, making tracking and planning difficult
With a manual underwriting process, it can sometimes be difficult to have an overview of what business is in process, because the information is not available in a single, easily accessible platform. For customers, this means not only waiting for a decision on their application but also waiting longer than they should for an update on its status.
Lending solution software that automates many steps of the underwriting process, improves the customer experience by offering online application and document submission features, and allows for easily configurable and flexible risk analysis criteria can help solve all these problems. An automated system puts all the needed data in one place, reducing errors and allowing sound loan decisions to be made much more quickly.
To learn more about how MonJa can help simplify and boost the productivity of your lending process, download this free e-book or request a demo today.
Images created by Dooder / Makyzz / Freepik.com[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][vc_custom_heading text=”Is Your Organization Ready for Growth & Expansion? Simplify loan underwriting and making it more efficient with MonJa” font_container=”tag:h4|font_size:25|text_align:left” google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:700%20bold%20regular%3A700%3Anormal”][vc_custom_heading text=”Don’t Wait! Request MonJa’s Lending Solution Demo Today! ” font_container=”tag:p|font_size:20|text_align:left|color:%23000000″ google_fonts=”font_family:Raleway%3A100%2C200%2C300%2Cregular%2C500%2C600%2C700%2C800%2C900|font_style:700%20bold%20regular%3A700%3Anormal” css_animation=”bounceInUp”][/vc_column][vc_column width=”1/2″][vc_column_text][yikes-mailchimp form=”10″ submit=”Request Demo”][/vc_column_text][/vc_column][/vc_row]