What is Loan Servicing Software?

What is loan servicing software?

Managing a lending portfolio is a complex task, even for industry experts who can keep up with ever-changing regulations. The job only gets harder as your business continues to grow, and that’s where loan servicing software comes in. But what is loan servicing software? It’s a tool to help you manage loans smoothly and efficiently, making it easier to track payments, handle compliance, and improve communication with your customers.

Who can use it?

Mortgage lenders, auto dealerships, small business lenders, and any other business that provides financing for customers could benefit from loan servicing software. But since there are many different types of loan servicing software with key differences and features, it’s important to do your research and choose the right tool for your business.

What does loan servicing software do?

Good loan servicing software should do the heavy lifting for you, taking care of the day-to-day management of your lending so you can spend more time focusing on strategy and growth.

Automate payments and daily reports

When it comes to managing loans, there are plenty of mundane yet essential tasks that need to be done every day, sometimes multiple times a day. Loan servicing software gives you the full history of failed, successful, and altered payments for every single customer in your database. You’ll be able to keep better customer records, as well as stay in control of:

• Outgoings
• Scheduled transactions
• Failed transactions
• Monthly claims and rebates
• Revenue

Streamline customer communication

Customers come back to services and platforms they enjoyed interacting with, and loan servicing software helps you give your customers the best possible experience. You’ll have their entire borrower history at your fingertips to quickly scan through and provide a fast, accurate service.

Some loan servicing software providers like Biz Core provide unlimited cloud storage capabilities too, meaning you’ll never run out of space to store important information no matter how big your customer base gets.

You’ll also be able to automate notifications to your customers, eliminating the need to manually send individual mail notices. You can tailor notifications to your industry, keeping customers informed with up-to-date information including:

• Successful payments
• Failed payments
• Overdue notices
• Loan completion notifications

Handle compliance

Australia’s financial industry is highly regulated and constantly evolving, which can make it difficult for lenders to stay on top of their requirements. Automatic tools keep you up-to-date with all local regulations to make sure you’re following best practices. Loan servicing software helps you avoid compliance penalties by:

• Automating mandatory disclosures like loan terms, fees, and interest rates
• Tracking and storing everything from loan agreements to borrower communications for audits
• Monitoring loan performance and flagging cases for early intervention
• Generating detailed reports for regulatory audits and financial reviews

Secure data

Given the sensitive nature of the information involved in the lending process, ensuring strong data security is non-negotiable. Loan servicing software helps you move away from paper-based records and outdated systems to enhance security and protect important information.

Biz Core’s loan servicing software has built-in data security and encryption from Microsoft Azure. That means you get state-of-the-art security providing multilayered protection and real-time global cybersecurity intelligence that can identify and respond to threats fast.

Why use loan servicing software?

In today’s competitive market, the right loan servicing software can help you retain existing customers and attract new business. Well integrated loan servicing software, like Biz Core, can help you:

• Eliminate human error: Automated payments means no more tedious data entry, saving your team time and preventing mistakes from holding up the process.
• Enhance customer experience: Express applications make for happy customers, and customised notifications means they’ll never be left wondering about next steps.
• State-of-the-art security: Relax knowing your vital data and customer information is safe and secure.
• Improve organisation: Built-in workflow processes mean pain-free applications for your staff and clients, while automatically generated reports give you easier access to business and compliance information.

Why choose Biz Core for your loan servicing software needs?

A smooth loan servicing process is critical to the success of your business, and the right software will make the whole process easier for both your team and your customers. Biz Core’s loan servicing software helps lenders streamline day-to-day operations, track important customer information, and enhance data security. It can also generate daily reports to help you track applications, leads, and revenue all on the same page.

But Biz Core is more than just a trusted loan servicing platform. We can be your end-to-end lending solution, helping your business reach new heights. If you’re thinking about taking the next steps towards better loan servicing software, speak to our team today and ask about a free demo.

Loan servicing software FAQs

What features should I look for in loan servicing software?

Key features to consider include:

• Loan tracking and management
• Payment processing (auto payments, manual payments)
• Automated billing and invoicing
• Interest and fee calculation
• Loan origination tools
• Reporting and analytics
• Compliance management
• Document storage and management
• Customer self-service portals

What is the difference between loan servicing and loan origination?

Loan origination software is designed to handle the process of creating new loans, while loan servicing software focuses on the ongoing management of existing loans, such as payments, collections, and compliance tracking.

Looking for an all-in-one solution? Biz Core offers both loan origination and loan servicing software to keep your business running like clockwork. Contact us today for a free demonstration.

Is loan servicing software customisable?

Yes, many loan servicing software providers, like Biz Core, offer customisable solutions that can be tailored to meet the specific needs of your business. Customisations can include workflow automation, integration with other systems, and personalised customer communication.