Know in Detail How to Implement Loan Origination System Efficiently

Every financial institution continues with a particular loan origination for a fixed period, and depending upon the success ratio of the loan application number, the institution decides whether to revise the system or not, that is, to implement the Loan Origination System more efficiently.  

Designing the correct system is potentially error-prone, but its implementation is the biggest challenge even after the task. A successful implementation only commences after in-depth consideration of the needs of the client and the challenges that the lending department faced in the previous Loan Origination System. The whole project requires centralized data from the bank and credit union departments.   

This means the loan sanctioning department is one of many teams involved in this planning but also in departments like marketing, IT, compliance, etc. The entire Stakeholder body has to be engaged while finalizing the new Loan Origination System.   

The following are the factors that should be considered by the bank and credit union while implementing the Loan Origination System. These appropriate steps will help banks and credit unions meet their short- and long-term goals that were the motivation for changing the system.   

1. Objectives, Transparency, and Alignment:  

A) Hold a conference with all the departments to ensure all the objectives regarding the respective departments have been met:  

The concerned objectives include - improvising the workflow between the staff members, thereby maximizing the process efficiency. This improvisation makes digital loan processing more relaxed for the bank and the applicant. Such improvement leads to increased loan applications, which boosts sustainable loan growth. Often in these conferences, it should be discussed with everyone, including the staff not included in the decision-making process, what changes the institution should make to minimize the potential hurdles.   

B) Insist that the Loan Origination Software provider customizes the system specifically for the financial system.  

This is a very profitable and recommended requirement. The provider should give access to this platform to everyone involved through a collaborative tool. Open communication and transparency are the key between the provider and the client. Every person involved in the project should know about everyone's participation.   

2. Testing and Bandwidth  

Testing the system will help the bank and the credit union figure out the potential problems that might occur in the future where the provider might not intervene. The provider will likely do their best to inform the bank about the potential hurdles they might come across and offer some ideas on how to tackle them. Testing will help the financial institution counter the obstacles even the provider may need to be aware of.   

 A) The testing process should be aligned while keeping the resource perspective in check  

The only way the bank can know about the system's issues is through the staff working on it. But for the team to carry out their job precisely, the bank and credit union should ensure that the staff has time to focus on this task as they would be involved in the regular work of the institution too.  

 B) The testing process must commence as soon as possible  

The most agile approach for finalizing a smooth system is to focus on aspects, and conduct testing focused on that motive. This is a better alternative than traditional meeting after meeting to decide on the pre-existed data and predictions. The spontaneous testing approach can reduce the time taken for system implementation by 50%.   

C) User acceptance testing allows financial institutions to make the most customer-friendly LOS.   

As the testing goes forward, the loan origination solution provider must make adjustments for the bank and credit union while fostering two-way information sharing throughout the implementation process. This adjustment will be made based on the templates of the previous LOS along with the newly collected data from the observation of the testing.   

3. Training and Ensuring a higher success rate.  

The bank and credit union staff need to understand the system to manage it after it goes live. The LOS provider must teach the know-how of the system to the bank administration and the staff involved in the loan application process. It should also include a brief idea about how to build the system. Before the implementation is near completion, the institution must train its staff to be well-trained users.   

Credility's goOriginate, a mobile app-based loan origination software solution, addresses the key objectives of transparency and alignment. By conducting a comprehensive conference with all departments, Credility ensures that the objectives of each department are met, fostering collaboration and synergy. Furthermore, Credility insists on customizing the Loan Origination Software provider's system specifically for the financial industry, ensuring a tailored solution.  

To ensure testing is efficient, the process is aligned with available resources and commences promptly. User acceptance testing is implemented, allowing financial institutions to create customer-friendly Loan Origination Systems. With goOriginate, organizations can streamline loan processing, going paperless and eliminating manual hassles. 

Discover the transformative capabilities of Loan Origination System - goOriginate and streamline your loan origination process to unprecedented levels of efficiency. Bid farewell to cumbersome manual procedures and embrace a smooth, transparent, and customer-centric solution. Reach out to Credility today to unlock the full potential of our advance mobile app-based loan origination software, empowering your financial institution to achieve unparalleled success. Seize this invaluable opportunity by scheduling a personalized demonstration and commence your journey of exploration with goOriginate.