What is a Loan Origination System?
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Loan origination is at the core of any lending business. As we move further into the digital age, customers expect better service and faster outcomes. This means moving away from outdated paper-based lending processes to streamlined online workflows. So what is a loan origination system, how does it work, and how can it help your business? Find out below.
What is a loan origination system?
A loan origination system (LOS) is all about making the lending process smoother, from start to finish. It enables you to create a better experience for both your team and your customers. From the initial application submission to the final disbursement of funds, LOS streamlines and automates the entire lending lifecycle.
Make life easier with Biz Core’s complete loan management software today.
How does a loan origination system work?
A LOS works by helping you to manage the complexities associated with regulatory compliance, risk assessment, and operational efficiency. Instead of dealing with the slow and cumbersome paper-based lending process, you use a cloud-based online system to manage your loan book. From processing applications, to lead tracking, to data visualisation, tasks that used to take hours can be done in a matter of minutes.
Loan origination system benefits
Loan origination software should make life easier for lenders, their staff, and their customers. Whether you have a large lending business or small one, a LOS will help to:
- Ditch outdated paper-based models for scalable online software
- Improve loan processing speed and efficiency
- Increase customer satisfaction and create a positive borrowing experience
- Reduce errors & make more accurate lending decisions
- Improve regulatory compliance
- Save time and money through automation
A complete loan origination system should alleviate the pain points you experience with your current system. Unlike large corporations, a local business, like Biz Core, is able to adapt to the changing market and meet our client’s needs.
Contact us to find out how we can help your business today.
Key features of loan origination systems in Australia
An end-to-end loan origination system will have features to suit each stage of the loan lifecycle. some of the key features of using a LOS include:
Application processing
A complete loan origination solution will make application processing faster and more efficient. Borrowers can submit everything electronically, without having to visit a physical office to get financed. Lenders can collect bank statements, conduct credit checks, and calculate affordability all through a 100% online process.
Compliance management
Loan management software helps lenders adhere to industry-specific compliance requirements. You can check your records online at any time and store all your documents in a central digital location, keeping things simple and easy to access during audits.
Workflow automation
LOS enhances operational efficiency by automating workflows and reducing the need for manual intervention. For example, you can do things like set pre-approval conditions, send automatic reminders to customers, streamline approval processes, and schedule automatic payment collections. This culminates in faster loan processing times and happier customers.
Communication and customer interactions
Keep simple and accessible records of customer interactions for future reference. Plus, make communication through various channels simpler with automated emails and text messages. From payment reminders to updates and notifications on applications, a LOS can handle each stage of communication and keep customers in the loop.
Ready to learn more about using a LOS for your lending business?
Being a lender in Australia requires a lot of hard work and dedication. By getting the right software for the loan origination process, you’ll be saving yourself time and setting your business up for future growth. With Biz Core’s simple, intuitive loan origination system at your fingertips, you can take your lending business to the next level.
We keep our costs simple and charge $0 on set-up fees. Contact us today and find out how we can help your business make the transition.
