Loan automation technology boosts the number of loan applications. Lenders may now manage the disclosure process in a way that is more transparent and effective.
When you sign up for an automated loan solution, you’ll find how much faster and easier it is. With an effective cloud-based platform, the entire process will be digitized and automated. Unlike traditional methods, automation eliminates paperwork and in-person interactions for a quick, efficient process.
Furthermore, loan automation expedites the underwriting and funding procedures while offering excellent customer service by finding the applications that best meet lending standards.
Automated Loan Processing: What Is It?
A solution based on software that utilizes the most recent cloud and online technologies to digitize and automate all phases of a loan cycle is known as an automated loan processing system. The automated loan processing system, in contrast to its traditional method, provides a speedy processing mechanism and does not require paperwork or in-person interactions. Subsequently, it contributes to streamlining the loan process by immediately identifying the applications that satisfy the lending requirements, conducting efficient underwriting, and swiftly funding the loan. Additionally, loan automation increases the overall accuracy of decision-making. Along with it, an automated loan management system brings a new idea to loan management by providing greater security features and a round-the-clock online assistance system.
Artificial Intelligence (AI) is becoming increasingly used in loan processing. AIs applied in the mortgage loan process promise more astonishing speed and greater accuracy at a reduced cost. Automation in the mortgage industry has shown to be a wonderful match for AI in mortgage lending. The procedure is sped up and made more effective with the use of Machine Learning Loan Approval, which also lowers the number of errors that occur during the final review.
The Long-Term Gains from Loan Automation
At the peak of digital banking, most lenders today are under pressure to lower risks, boost profit margins, and offer services online.
These problems can be resolved, thanks to digital transformation, and analytics-driven loan origination platforms, as leading service providers have already demonstrated.
Reduced risks
When you rely on human error, you risk making mistakes. That’s why it’s important to automate repetitive tasks. Doing so will reduce the risk of inconsistencies and errors in your underwriting decisions. If you want even more accuracy, new-gen loan origination systems can be augmented with data sources and customer information verification tools that provide more accurate feedback.
By using an intelligent rules engine for contextualizing customer-provided information, your team can get an instant, comprehensive view of potential borrowers as soon as you start to gather the required data. This will allow you to make accurate decisions and navigate through challenges.
Operational cost savings
The purpose of an automated loan origination system is to streamline certain steps of the loan origination process while leaving more complex cases to human advisors. By acting as a digital filter, such systems can help you produce and process larger volumes of loans without the added costs associated with full-time workers.
With intelligent engines, you can predict which terms and structures are best for the customers so that you can make more profit without risking their satisfaction.
Enhanced compliance
With more predictability and repetition coded into your origination process, you will be less vulnerable to unfair decisions and regulations. You’ll also be able to protect the interests of both your borrowers and field team.
Satisfying Customer Experience
A more streamlined loan process is good for business and good for customers. You can get faster decisions, competitive rates, and expedited funds. All of these are key to effective retention which is crucial to steady revenue growth.
CRM functionality
Using a CRM for your small business not only streamlines the client experience but also helps with retention. Instead of having to search through emails and back-and-forth conversations to find important information, everything is archived neatly in one place. The loan automation software automatically knows where to go when it needs information quickly–saving time and increasing overall efficiency.
Cloud delivery
Modifying and saving time isn’t the only benefit of this loan automation system. You’ll be able to install it on your sites across a cloud-based service for an initial setup within hours. You’ll also have the added convenience of ongoing enhancements and consistency when using it. Approved users will also have access to secure storage, which protects their personal information from insecure software.
Digital notification over multiple channels
With the automated loan system, borrowers receive access to desired notification templates with tailored information for loans. Lenders can distribute notifications through email, print, and text messages. The multichannel implementation also helps lenders create a secure digital record-keeping system.
Important Areas for Loan Automation
In the loan process from above, there are areas in which you can cut down on time spent using a solution like Jotform. The easy-to-use form builder allows you to build forms, tables, and approval workflows that will make loan origination more efficient. Take a look below for some tips and automation opportunities JotForm can help with.
Online borrower data collection for prequalification
We have prebuilt loan application templates that can capture borrowers’ data, such as name, birth date, email, phone number, and address. The templates will also include the items you need for your lending process – including income, credit inquiry, and employment.
You can make changes to these loan application forms to fit your company’s needs — removing or adding data points, creating new sections, adding your logo, modifying the colors, and so on. This will help visitors have a consistent experience as they go through your website.
Borrowers must submit their applications through the Jotform. After that, you can see all the applications from your secure account.
Make Loan Packets Digital
To collect documents in digital form, you’ll want to use Jotform. We provide a variety of features that allow users to upload and store critical documents. For example, our records can be used to collect pay stubs, proof of address, or bank statements.
Streamline communications with borrowers
Before we discovered DocuSign and all of its benefits, there was a lot of paper to manage between the lender and the client. Even though you can’t completely eliminate it all, you can reduce some of the paperwork with exciting digital solutions. Making documents digital does not guarantee that everything is taken care of — borrowers often need reminders to submit all outstanding documents. This takes up a lot of your team’s time.
Jotform’s reminder emails save you from needing to follow up with clients for documentation. Just send the forms to your client and set up these emails to eliminate that task from your team.
Make all Signatures Digital
As electronic signatures have become more prevalent across industries, many lenders have lagged in adopting them. But electronic signatures are legally binding and eliminate the potential for delays that may occur with traditional signatures. Thanks to Jotform, you can easily capture e-signatures. That makes borrowers happy because they don’t have to wait as long and the lender’s work is less interrupted.
Next Steps
Robotic Process Automation (RPA) has a lot of benefits in the commercial lending market, the most notable being automation. Robotic Process Automation can be used to bypass tedious and time-sensitive administrative tasks that require little effort and convert them into an easy-to-use automated process. It also provides reliable, consistent dataflow which will help any stage of the loan origination process run more smoothly. Implementing this technology is just as simple as integrating it with your front end without requiring any changes to your existing IT infrastructure.
