What is a Loan Lifecycle Management System?
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Drowning in Excel spreadsheets? Losing business from multiple mistakes due to human error? Managing loans is a tough business, and it’s hard to keep track of all the applications, payments, and debts. On top of all that, you need to make sure you’re staying up to date with Australia’s ever changing financial landscape and regulatory requirements. A loan lifecycle management system could be what you need to take the load off and propel your business into the 21st century. But what is a loan lifecycle management system? We’ll take a look at some key features and how they can help everyone from new loan businesses to expert lenders.
What is a loan lifecycle management system?
A loan lifecycle management system is pretty much what it sounds like. It’s software that helps you manage and streamline the entire process of a loan from start to finish. They can help you upscale your operations, boost efficiency, and cut down on human error by getting rid of manual processes and messy spreadsheets. Some key features of loan lifecycle management systems include:
- Automation: Streamline loan origination, underwriting, and servicing through automation.
- Data analytics: Provide insights into borrower behaviour, risk assessments, and loan performance.
- Customer relationship management (CRM): Integration with CRM systems to make your customer interactions and communications simple.
- Compliance management: Keeps you up to date with the legal and regulatory guidelines in Australia.
- Document management: Store and manage all the necessary loan documentation, including contracts, agreements, and disclosures.
- Risk management: Identifying and mitigating risks throughout the loan process, such as fraud, defaults, or changes in interest rates.
Who can use one?
Since loan lifecycle management systems make the entire process of handling loans easier, they’re an essential tool for most financial institutions, from large banks to small and medium sized lenders.
Some financial institutions around Australia and New Zealand may have developed their own in-house system, but many rely on third-party platforms like Biz Core. Our secure system gives you access to all the benefits listed in the previous section, as well as zero set up fees and local support whenever you need it.
Why use a loan lifecycle management system?
Aside from modernising and transforming digitally, there are many reasons why a lending business might consider using a loan lifecycle management system.
Increase customer satisfaction
An easier application process makes for happier customers who can upload and sign documents from any device without the hassle of submitting paperwork. Not to mention the improved communication and transparency, meaning borrowers can track their loan status and easily access documents.
Boost security
Most modern systems will use encryption to protect sensitive information, as well as advanced access control and even fraud detection technology. But these features go beyond protecting customer information, ensuring compliance with regulatory standards to keep your business and data safe.
Biz Core includes state-of-the-art Azure cloud security to make sure your important information stays safe and sound.
Maximise Efficiency
Boost your business productivity and take a stress-free approach to compliance. Lifecycle management systems automate processes, taking away data entry mistakes and other human errors to leave you with a clear and simple audit trail. And with a built-in workflow process, Biz Core’s lifecycle management system makes the application and approvals process pain free for both your staff and clients.
Track data
Say goodbye to the days of spending hours compiling spreadsheets and turning them into reports. These systems let you track everything from transactions and leads to monthly revenue, giving you clear reports. With Biz Core, these are all available on the same page to make monitoring your business even easier.
Easier payments
Tracking payments doesn’t have to be a time consuming task. With scheduled direct debits, you can track all successful and failed payments, as well as send out automatic reminders and notifications.
Costs savings
All of the automation possibilities a loan lifecycle management system provides won’t just save you time; they’ll help you reduce costs too. By making routine tasks easier, you can optimise your resources and allow your staff to focus on higher-value activities.
Why choose Biz Core for your loan lifecycle management?
Biz Core’s loan lifecycle management system gives you the ability to easily manage loans from origination to settlement in one secure system. As a 100% Aussie owned business, our local support team can give you the support you need when you need it through every stage of your digital lending journey. And zero onboarding costs means you can get started for free.
Plus, with Biz Core you’ll have access to more than just loan lifecycle management. Our client-centred approach to lending software means we can tailor an easy-to-use system to your specific needs. Book a demo to see what an end-to-end lending solution could look like for your business.
Loan lifecycle management FAQs
What is a loan life cycle?
The loan life cycle is the journey of a loan. This begins from when a borrower submits their application and ends when the loan is repaid in full with interest. There are varying stages that make up the loan life cycle and it can differ between lenders. However, generally, the stages of a loan life cycle include:
- A customer submits their application for a loan to the lender.
- The lender appraises the application and assesses their eligibility.
- If the loan application is successful, a contract will be sent to the customer to be signed.
- Once a signed contract is in place, the funds will be dispersed to the customer.
- The customer begins repaying the loan, with interest, in the agreed scheduled instalments.
- The customer pays the last instalment, and the loan is settled. Any collateral will be lifted or returned during this stage.
What is the difference between a loan management system and a loan origination system?
A loan origination system, or LOS, deals with the initial stages of a loan, such as the application and approval process, whereas a loan management system, or LMS, focuses on loan servicing and portfolio management.
