Technology has revolutionized the way we live our lives. It’s also impacted every single industry, from retail to the commercial loan industry. And with the advances in technology, many commercial loan officers are under constant pressure to utilize their tools to originate more loans quickly and efficiently.
In other words, loan officers must use the most efficient and easy-to-use tools available to them. Some of the most powerful tools that can help loan officers streamline their workflow and increase their productivity include:
- Automated financial statement spreading software
- Mobile lending technology
- Loan origination software
- And other commercial loan service software
Table of Contents
Automated Financial Statement Spreading Software
Automated financial statement spreading software is designed to help officers make better decisions. This software helps loan officers by automating the entire spreading process.
Rather than spending hours or days converting complex tax returns and financial information into reports, it generates a report in a fraction of the time for faster decision-making. This form of automation allows loan officers to focus on more important tasks.
Additionally, automated financial statement spreading software can help loan officers detect mistakes and inconsistencies in a borrower’s financial statements. As a result, this software helps make more informed and more accurate lending decisions.
Mobile Lending Technology
Mobile lending technology is one of the most important tools for a commercial lender to have access to. This type of technology provides commercial lenders and borrowers with mobile-first software that can help with communication, loan originations, and loan management.
One of the biggest benefits of this tech is that it allows lenders to receive paperwork and borrowers to send in paperwork from anywhere in the world. This streamlines the entire process and creates a better user experience for everyone involved.
Additionally, mobile lending technology also makes it easy for lenders to keep track of their loans. This means lenders can see what stage a loan is in, who the borrowers are and other important information.
Mobile lending technology also tends to be extremely secure, which is extremely important when dealing with commercial borrowers.
Security must remain a lender’s top priority when dealing with the amount of money involved in a commercial deal. And it’s even more important when considering how the number of cyberattacks in 2021 faced a 17% increase compared to 2020.
The rise in cybercrime and cybercriminals is due to several factors. These include an increasing dependence on technology, increased connectivity, and remote working.
The best way for lenders to protect themselves and their borrowers is to match the sophistication of their attacks with sophisticated mobile-first software.
Commercial Loan Origination Systems
At the most basic level, loan origination software focuses on two things — loan origination and loan fulfillment. Efficient loan origination system (LOS) automates the entire loan portfolio cycle from end to end.
Loan origination systems typically integrate into a single platform. This allows commercial loan officers to manage and process their existing loan products easily.
This system also helps track borrowers through each stage of the origination process. From pre-qualification to funding, the LOS captures data and keeps borrowers moving.
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The best LOS platforms also help reduce regulatory compliance risk. This is possible due to automated decision-making and compliance reporting tools.
Most LOS platforms also offer detailed insights into each transaction. This is beneficial for resource optimization and the company’s bottom line.
With some software, you can also integrate your other existing tools. For example, you can integrate existing underwriting, credit analysis and financial statement spreading software.
Ultimately, this software helps loan officers get approvals quicker and make it easier to communicate with borrowers. Additionally, the best LOS platforms tend to be highly secure, which is vital given the risk of cyberattacks.
Newer software often offers security features to help with data security and fraud detection.
For a piece of software to be called loan origination software, it must be able to do the following:
- Work across several digital channels
- Adapt to changing regulatory requirements and other industry policies
- Capture and track important customer documents and data
- Allow the user to view all pertinent information on one platform
- Allow for integrations with other software and/or existing frameworks
Paperless Commercial Lending
Although economic institutions are preparing for a potential market drop, commercial lending is still the support system of banking. However, will obstacles such as higher interest rates, more competition from fintech companies, and elevated client expectations produce different results?
For banks and lenders to continue being prosperous, they must focus on investments that will help retain dependable borrowers, make wiser credit decisions, and help differentiate risk across their portfolios.
One investment that’ll help commercial lenders navigate opportunities ahead and help improve a lender’s competitiveness is Optical Character Recognition (OCR) technology. A big challenge that commercial lenders face is inputting a ton of data accurately into a system to decide if a borrower is creditworthy.
Because commercial lenders are plagued with this challenged, the borrowing process is often delayed because it must be reviewed multiple times. OCR technology digitizes physical documents so that the data they contain can be processed and analyzed. This is especially helpful for tax returns and other financial documents, which are often complex and require a high degree of accuracy.
Some other benefits of OCR technology include the following:
- Reducing errors with automated financial statement spreading software
- Saving time spent inputting data
- Creating a better experience for customers
- Better analysis through more precise data
Technology can be a huge boon to commercial loan officers. It can provide a variety of tools to help them work more efficiently and close more loans. Automated financial statement spreading software can save time and eliminate mistakes, while mobile lending technology can allow you to approve loans on the go.
Loan origination software can make the loan application process smoother and faster, and POS systems can draw in tech-savvy borrowers and help loan officers make the best use of their time.