Automate the Lending Process With Commercial Loan Origination Software!

Last Updated on January 5, 2023 by Andrew

Commercial loans are particularly complex and costly to deliver, especially for commercial mortgages or real estate loans. Since commercial loans are low volume and high-value loans, the commercial banking loan origination process involves multiple steps and channels. There are numerous stakeholders involved in a manual commercial loan origination process like product teams, credit committees, treasury departments, etc., who are required to do individual validation before the final approval. 

The paper-based manual loan origination process can sometimes become challenging and tedious as it is an outdated Way of performing tasks in the digitized world. There is a huge risk of data misinterpretation and Manual errors while carrying out the manual loan origination process.

Considering the numerous drawbacks of manual loan origination, commercial loan origination software has been launched for banks and other financial institutions. The automated loan origination software allows banks to achieve straight-through processing in their real estate loan origination software, enhancing their customer experience. Introducing automation in loan origination processes has improved the quality of decision-making greatly, generating greater profits. 

What are the benefits of using commercial loan origination software? 

• Customer Management

The customer experience can be significantly enhanced by managing the entire customer lifecycle in a unified automated loan origination software. The loan origination software offers effective customer relationship management(CRM) solutions that keep track of everything from customer onboarding to the final loan application approval. This helps streamline all the loan origination tasks, such as the loan underwriting process, making them seem less and efficient.

• Document Management 

Commercial loan origination involves a lot of documentation and paperwork, which can be quite challenging if handled manually. It requires strong document management skills to manage documentation efficiently. Therefore, taking help from loan origination software is a great option to manage the documentation digitally, improving the customer experience. Moreover, it also helps the relationship managers to focus on more valuable activities eliminating the need for manual efforts. 

• Exceptions Management

Automation has significantly improved the efficiency of the commercial loan origination processes. However, the sudden shift to automated loan origination process from manual tasks put the customer relationship at risk. For example, some of the bank’s regular customers may not comply with the defined credit policies but are valuable assets to the bank. In those cases, the automated risk management software allows exceptions during the approval process. This enables the banks to enhance their customer relationship and reduces the risk of losing a valuable customer due to new business opportunities. 

THE FINAL WORDS

Although some businesses may face certain operation complexities while adopting commercial loan origination software, it can be beneficial for the business in the long run. It is essential for financial institutions to improve their efficiency and enhance their decision-making by indulging in automated software. Find the best commercial loan origination software for your needs to achieve your business goals.