5 Loan Servicing Software Options for 2022

Borrowers now are very different from what they were 10 years ago. They are more tech-savvy, use several devices, and have more loan options than ever, with some of these possibilities being novel financial technology solutions.

By 2020, millennials would account for 53% of home-purchase mortgages.

Nowadays, you may fill out a loan application or monitor your mortgage payments while delayed in traffic or waiting to travel at the airport.

Because of the surge in demand, so many lenders have taken action. In 2020, more than 9 out of 10 lenders provided online applications and portals to their borrowers.

5 Financing Software Providers to Watch in 2023

What Is Loan Software?

Lenders utilise loan software to centralise information, tasks, and financial services across the loan lifecycle. Loan origination, refinancing, servicing, debt collection, client management, and credit scoring are typical examples of these capabilities.

You can use a one-stop shop for all your digital loan servicing needs, or you can develop a tech stack of loan software with varying strengths, depending on your target audience and business use case.

Integrations are an essential component of the loan software ecosystem. Search for platforms that can connect most effectively with your core systems, relationship management tools, process management tools, and other third-party financial products that can improve the customer experience.

The Advantages of Loan Servicing Software

Traditional lenders are now fighting for end-to-end loan management with financial technology firms. What distinguishes them? Simply and speed.

In a world where we can open bank accounts, make peer-to-peer transactions, and use credit cards from our phones, it's evident that sophisticated, time-consuming banking processes are no longer viable. Bank consumers and borrowers want to interact with lenders whenever they need it, whether at home, work, or on the go. However, only 7% of banks conduct the complete loan process online.

If you're still on the fence about loan servicing software and what it can accomplish for your company, consider the following advantages:

1. Reduces risk

Loan servicing software can assist your team track actions, payments, and documents all in one location, from compliance management to debt collection. With a comprehensive picture of each client's account, you can minimise missed deadlines and proactively remind borrowers about required papers and payments. Automated workflows and AI-powered solutions can assist your loan officers in personalising the borrower experience through upfront payment schedules and credit risk modelling, allowing consumers to avoid bad debt.

2. Saves time

Customers choose to work with fintech leaders because they may reduce the processing time by nearly ten days. When borrower data is streamlined and in sync with critical systems, you can incorporate pre-qualification, loan applications, document collecting, compliance checks, and approval processes into a single frictionless workflow. Your loan officers can save work days by eliminating the need to manually extract borrower information from various sources, review documents, and prepare reports from scratch.

3. Reduces calculation errors

Loan software allows you to apply pre-defined criteria and stages to avoid operational errors during transactions. You may maintain consistency in your approach while still having the freedom to customise parts so that calculations better reflect specific borrower accounts and situations. If loan officers deal with missing or erroneous information, workplace distractions, or enormous workloads without automation, the likelihood of unpredictability increases.

Salesforce Use Cases for Data Duplication

Overseeing right and clean informational collections is a vital part of Salesforce. It expands the outreach group's certainty and capitalizes on Salesforce CRM Software.

Moreover, it helps organizations consent to and maintain various information insurance and security regulations. Thus, it handles repetitive information across exercises and monitors advancement.

5 Best Loan Software Providers in 2022

This list introduces you to nine loan software vendors who have the most success with loan officers and borrowers.

1. SimpleNexus Mortgage Platform by nCino

SimpleNexus is well-known for its comprehensive coverage of all stages of mortgage transactions. They provide loan officers with digital tools to communicate with referral partners, improve the point of sale experience, and simplify the closing process.

Over 80 third-party integrations can help you add new features to your digital experience without disrupting existing workflows. Financial firms, for example, like SimpleNexus because it makes it simple to connect processing and underwriting processes with loan origination software (LOS).

The platform caters to established enterprises such as the Texas Tech Credit Union (TTCU), which has over 25,000 members. In a case study, a TTCU applications manager tells SimpleNexus that 90 per cent of mortgage channels come from channels other than their physical branches. They desired a digital platform to centralise every loan process step, saving time and reducing paperwork for staff and customers.

2. Sageworks Lending

Sageworks Lending is a lending platform for rising financial organisations looking to scale their loan portfolios through automation. You can utilise the platform to speed up loan processing by centralising services for numerous loan types within a single web interface, eliminating the need to juggle commercial and personal loans across disparate systems. Customers say this solution is distinguished from other feature-rich LOS because of its quicker deployment time, which allows teams to be up and running quickly.

Smaller banks and credit unions, such as 121 Financial Credit Union, see the most significant benefit from the platform's ability to speed up loan applications by allowing consumers to skip entering information their institution already has saved in the system.

3. Salesforce Finance Services Cloud

Salesforce Finance Services Cloud is used by financial services firms because of its skills in collecting and storing client and prospect data from various conversations and touch points. The platform's features can automate the entire lending lifecycle and track critical information along the route.

Like all Salesforce products, you may utilise the platform to create extensive reports that allow you to evaluate several layers of each connection and readily identify areas for development. You can also use AI-suggested forecasts, scoring, and routing features.

4. Sofi

Unlike the other loan software on this list, Sofi is a financial technology firm that develops member-driven lending products. It's an all-in-one finance platform with services spanning from loan refinancing to banking and investment. It is designed to help its users manage their financial destinies.

You can access all these financial services using a single app, including its comprehensive line of credit products. Loan administration is entirely online. Members can use the app to get pre-qualified for loans, submit applications, and receive brand-new loans that match their needs.

5. LoanSifter

LoanSifter is regarded by mortgage brokers as a trusted tool for hundreds of investors to find and compare mortgage rates. This platform is frequently utilised by small to mid-market organisations who wish to win customer relationships by immediately giving the best pricing options to clients.

Customers can use the comprehensive search capabilities of LoanSifter to generate new pricing quotes for clients in various scenarios. Without the technology, a typical workflow would entail mortgage brokers manually calculating the optimal pricing using rate sheets. When clients are on the line and want pricing alternatives immediately, this time-consuming process becomes even more inefficient.