For numerous financial institutions (FIs), it can take months to process a loan from application to closing. As FIs are always looking to improve their lending pipelines to close more loans faster, access to pipeline performance reporting is crucial because it provides the data FIs need to operate more efficiently.
However, FIs typically run into problems because they can't access performance reports in real time, and, consequently, they're unable to get an up-to-date representation of the pipeline.
All too often financial institutions rely on performance reports at the end of the month that use a series of key performance indicators (KPIs)/data points that only reflect one point in time. Because this point-in-time data is static, the information FIs receive is often out of date by the time they review it, so it's no longer actionable. While reviewing a snapshot of the past can be helpful, it's not a strategy for change today or in the future.
Why You Should Actively Manage Your Pipeline
To influence trends, institutions must review data in near real-time and analyze trends daily rather than monthly.
One scenario could be that when a financial institution analyzes trends for approved and funded loans, it learns that 50% of its successful funding will occur within 36 hours of the application, leading to a more positive member/customer experience and repeat business.
However, after 36 hours, the probability increases substantially that loans stuck in the pipeline will fall off. The FI discovers that there is a 20% attrition rate before 36 hours, jumping to 50% attrition after 36 hours.
By having near-real-time access to the pipeline data, the FI's team can coach their loan officers and address any lag time before they miss the opportunity to close the loan due to a delay in decisioning or response to the member/customer.
In addition, access to near real-time data improves the customer experience as loans are funded faster, the staff provides the best opportunities to their customers, and consistent staff coaching leads to continuous improvement.
With MeridianLink Insight, institutions can use relevant data to actively manage their origination pipelines instead of waiting to report on pipeline results at the end of the month.
MeridianLink Insight also enables institutions to create pipeline efficiencies using data-driven service-level agreement oversight, access consumer pipeline insight across internal user groups, and better benchmark the performance of their pipelines against their peers.
How to Get Started
Real-time monitoring of lending data is a powerful tool to help financial institutions improve the customer experience.
The right business intelligence software lets FIs slice, dice, and peer into their loan origination processes to learn what they need to know when they need to know it. Put simply, FIs can capitalize on knowing what borrowers are experiencing while they are experiencing it.
Financial institutions can begin to see improved performance and trends by first looking at the KPIs they want to influence, reviewing performance metrics that influence those KPIs, drilling down to the line level to take action, working back up to tell the story, and seeing the results of their activities.
MeridianLink Insight offers near real-time access to MeridianLink Consumer data, so users can:
- Optimize origination operations that enable near real-time performance measurement and pipeline analytics.
- Increase origination growth opportunities by identifying and testing workflow exceptions and efficiencies.
- Measure the impact of insights to drive more tangible business results.
Watch our on-demand webinar to learn more about optimizing your origination pipeline.