Many banks offer commercial loans that, while not high-volume products, carry significant value. However, provisioning these loans, especially niche ones like commercial mortgages or property investment loans, can be complex and expensive. Relying solely on online processes for downloading and onboarding might not always be feasible.
Apart from digital platforms and apps, customers might approach their local bank branches or engage with brokers. Consequently, the software for commercial loan applications might need to integrate various processes and channels. Corporate Relationship Managers often find themselves mediating among various stakeholders, such as Directors, CFOs, financial teams, product units, and credit review panels.
These Relationship Managers often grapple with inefficient commercial loan initiation systems, marked by tedious paper-driven procedures and outdated legacy platforms. This is not just wasteful and annoying; there is also a real danger that Relationship Managers may lose out on potential commercial possibilities which is why so many banks are switching to BankPoint for solutions that work.
The Process of Originating Business Loans Is Ripe for Innovation
Many entities recognize the immense potential benefits of robust commercial loan origination systems for financial institutions and underwriting software for lenders. Implementing straight-through processing in both mortgage and real estate loan origination technologies, along with commercial lending procedures, can dramatically enhance customer satisfaction, decision-making velocity, and, at the end of the day, profit margins.
Given the plethora of commercial loan origination system providers available, it’s vital to discern which aligns best with your organization’s needs. To guide your decision, here’s a curated checklist of aspects to consider while evaluating commercial loan origination platforms.
Best-Practice Commercial Loan Origination Software Should Have the Following Features:
From Beginning to End Customer Lifecycle Management (CLM)
Irrespective of the channel chosen by your commercial loan client, a seamless experience can be achieved by managing the entire customer journey within a consolidated customer relationship management (CRM) platform. An adept CRM not only oversees marketing and lead qualification but also streamlines onboarding, loan approvals, post-sales support, and collections. This ensures your business loan origination process remains both efficient and fluid.
Credit Policy Guidelines
Many commercial loan origination platforms offer customer credit evaluations and ratings. Yet, it’s paramount to deploy a comprehensive underwriting software system. For instance, many businesses utilize InRule. This advanced rule engine automates credit criteria with minimal human oversight. With InRule, business professionals can modify policy rules and calculations without needing to code. It empowers your organization to gauge customer eligibility based on specific credit policies for distinct products, enhancing the efficiency and user-friendliness of your lending process.
When bank staff can accurately and automatically calculate exposure and key percentages, they’re empowered with a broader and more informed perspective to evaluate the customer. This deeper insight, considering interactions with parent companies, affiliated entities, and shareholders, facilitates a more precise risk assessment. Consequently, banks can offer optimal loan types, tailored with the most suitable terms and rates.
The ultimate business loan origination system melds intricate operational nuances with stellar relationship management capabilities. To stay ahead, banks need to heighten their efficiency, enabling swifter decisions, adept risk management, and the seizing of lucrative commercial opportunities. Identifying the perfect commercial loan origination software tailored to your needs paves the way for immediate and long-term successes.