The right technology can be make-or-break for your bank or credit union. This is especially true when it comes to loan origination software. The right loan origination system can significantly improve operational efficiency, improving both your team’s productivity and your consumer satisfaction levels. And yet, with so many different loan origination systems out there, it can be difficult to know which one is right for your organization. In a new post from MeridianLink, you can learn more about how to judiciously select a new loan origination system.
The first step is thinking through what’s important to your financial institution. Some considerations include:
- The outcomes you’re looking for
- Your workflows and current pain points
- Sales goals
- Need for integration with other vendors
- IT support
- Integration and Innovation
It may also be beneficial to consider the ways in which a state-of-the-art loan origination system can benefit your financial institution. Some key selling points include:
- Improved speed and accuracy
- Easier time maintaining compliance
- Reporting dashboard to encourage cross-team collaboration
- Maximized profitability
To learn more about selecting the LOS or digital lending solution, check out the full post below.
How to Choose a Loan Origination System
The right technology can be make-or-break for your bank or credit union. That’s something we’re all finding out with the onset of coronavirus and the attending quarantine requirements. With physical branches closed, credit unions and banks are leaning more than ever on digital banking tools, including online loan applications. Such programs allow financial institutions to grow their loan volume even during the pandemic, and they let members and customers attend to their banking needs from the comfort and safety of their own homes.
But what about your bank or credit union’s loan origination system? A good loan origination system can make all the difference when it comes to your loan application volume, the efficiency with which your employees can work, and more. Simply put, a financial institution’s loan origination system should be a cornerstone of productivity as well as consumer satisfaction.
That raises the question: How can you make sure you’re picking the right loan origination system for your financial institution? What are some of the hallmarks of a robust software solution, and how can you feel certain you’re choosing something that addresses the specific needs of your credit union?
At MeridianLink, we’re passionate about helping bank and credit union management teams find the loan origination software solutions that work for them, touching on their pain points and helping them achieve their goals. There’s not necessarily a one-size-fits-all solution. With that said, there are a few key considerations to make as you shop for a new loan origination platform.
What’s Important to Your Financial Institution?
Before getting into specific loan origination software solutions, it may be beneficial to think about what’s most important to your institution. What are the things you value most? What are you ultimately trying to achieve with your new software?
There are several possible answers. Some examples include:
- Outcomes. What outcomes are you looking to achieve through your new loan origination software? Is the goal simply for each branch to originate more loans? Or is it more meaningful for you to have a robust software solution that originates lending across a number of channels, such as mobile, inbranch, call center, etc.?
- Sales Goals. Some banks and credit unions set monthly sales goals. If that’s you, then this is something that should be factored into your software selection. That’s because some loan origination platforms will offer you cross-selling functionalities, enabling you to better and more efficiently hit those sales targets.
- Workflow Automation. One of the most significant advantages of a good loan origination system is that it can help your team automate and streamline workflows. To take full advantage of this, it can be helpful to write out your workflows in advance, specifically highlighting any points of friction. Once you have a clear sense of your work processes and pain points, you can identify the software that’s best for you.
- Consumer Site. Something else to consider with any loan origination system is the consumer-facing aspect. Does your software provide a consumer site? Does your current site need to be improved or revised? Are you sure that your current site is ADA compliant? You may or may not need to pursue a new software suite that includes a new consumer-facing portal.
- Robots IT Support. Is it important to you that your new software comes backed with robust IT support? For most financial institutions, the answer is going to be a resounding yes.
- Integration and Innovation. Think about other vendors you’re currently working with. Are there any who you feel serve you well? Any who you’re not ready to say goodbye to? If the answer is yes, then it may be beneficial to seek out new software solutions that can be integrated with your other vendors and their products.
These are just a few of the factors for credit unions to think about as they look for their next loan origination software.
The Benefits of Upgrading Your Loan Origination Software
Maybe you already have a loan origination software in place; perhaps it’s a platform that’s served you well for a good long while. You may have some uncertainty about whether upgrading your platform can truly be worthwhile.
The reality is that loan origination software has come a long way, and a state-of-the-art system can offer some performance perks that an older system won’t be able to match. For example:
- Improved speed and accuracy. A newer loan origination system can help you make credit assessments more rapidly and more reliably, all of which helps enhance your team’s operational efficiency.
- Customization. A newer loan origination software solution can provide heightened flexibility and different customization options, too. Rather than submitting to a cookie-cutter solution, your financial institution can find something that’s truly built around its needs.
- Collaboration. Do you feel like your teams are working in silos? A loan origination upgrade can provide greater opportunity for collaboration and teamwork. Easy-to-use reporting dashboards ensure that everyone on your team is working from the same basic set of information.
- Profitability. Another advantage of a loan origination upgrade? Maximized profitability. Use analytics to manage and control your costs, remaining competitive with other lenders in your area.
- Compliance. Finally, note that a modern loan origination system will help simplify the compliance process. This can ease some of the pressure you feel to stay on top of regulatory issues.
These are just a few of the ways in which a new loan origination system can improve the performance of your credit union. If you’ve been on the fence about upgrading, take note of all the ways in which it can pay off when you make the jump to an upgraded system..
Learn More About Loan Origination Systems from MeridianLink
MeridianLink has long been a standard-setter in loan origination software. We’re committed to helping our credit union and banking clients find solutions that address their specific needs and help them achieve their goals. We have two very popular loan origination systems: MeridianLink® Consumer and MeridianLink® Mortgage. MeridianLink Consumer handles personal loans and lines, credit cards, auto and Powersports loans, HELOC, and small business loans and lines. MeridianLink Mortgage handles first mortgage origination.