How to Speed Up Lending in Banks & Financial Organization

(STL.News) Why should banks accelerate lending?  There’s an outdated opinion that clients will be waiting for credit approval as long as it takes since they need money.  In the decade of digital transformations, lenders and credit unions following the same point will go bankrupt.

The latest insights show that customers are no longer ready to wait for loan approvals for up to 7 days.  Understanding the power of online services, they’d rather switch to another company ready to issue a loan in fewer days or even minutes.  Efficient application processing and fast loan granting are the keys to increase the customer base and win out more loyal clients.  The ability to control the whole lending process from customer onboarding to debt collection manually is a must for lenders who strive to generate income and outperform competitors.  To provide such a high level of services, banks resort to tech-savvy loan management software.

The automation of manual tasks, such as sending notifications to clients, tracking late payments or missed ones, charging fees, managing payment schedules, recalculating payments, credit scoring, and others, saves your time since you no longer need to do it manually.  And this is only a small amount of tasks that can be simplified.  Loan management software allows changing day-to-day routine and focuses your efforts on other time-consuming tasks.

Using bank loan automation software, you’re able to process hundreds of files in the same amount of time that you would need to process one manually.  When the processing and speed are significant for the business’s success, the implementation of automated software allows you to establish high-value processes in accounting and management departments.

Loan servicing software is not only about debt collection and credit management.  The software also takes over accounting tasks like creating reports, invoices for borrowers, statements for investors, and others.  Dedicated bank loan management software ensures the accuracy of reports and makes it easier and faster to extract the needed data for any period within seconds.

Among the speed up in work, loan management software allows reducing manual and calculation errors as well as decrease credit risks and non-performing loans.  Human errors can occur in any business, but in the lending domain, incorrect amounts or wrong invoices might be crucial.  In such cases, automated software doesn’t make such mistakes, thus reducing risks.  Besides, the software can analyze data on possible borrowers and decide who might not pay back the loan.  These functions make lending software a must for lenders who strive for constant business development and financial growth.

The final result of automated tasks and reduction in risks is gradual revenue growth.  When you can constantly track non-performing loans, collect data on borrowers, manage accounting processes, and identify credit risks, you’re able to reach a new level of effective work and boost the bank’s revenue.

Remember that the success of your business fully depends on whether you put money and effort into its development.  The world never stands still and constantly drives new technologies, business ideas, and approaches. Following the latest trends in digital lending transformation, rest assured, you’ll gain success.

The article is written by HES FinTech, an experienced financial software vendor.  The company provides comprehensive lending and AI-based credit scoring and decision-making solutions under the GiniMachine brand.

The company’s flagship product is an all-in-one modular platform that brings lending automation enhanced by AI to financial institutions.

HES has a proven track record working with financial institutions and has successfully demonstrated that it is a trusted and reliable software vendor and partner.  The company completed 115 high-profile lending projects for governments, banks, and alternative finance companies in 25 countries from North America to the APAC region.