Every software company needs to rethink its approach on and off. In July 2020 Adobe released the significant update of the Magento CMS platform that provided several new features and tools for the e-commerce community.
Two years after their previous major update. The company saw that the market was developing fast and the platform would become obsolete. So how do you know when it’s time for a software update? Your lending business will tell you.
Sign #1: You no longer achieve business goals with the current platform
Prompt updates of your loan origination software are insurance that the established processes will keep doing well. Adaptation to the market demand is a must for businesses that want to survive. Let’s imagine that you have a goal to reach 100 good loan applications per month. But you note that several loan leads drop progressively in your company, while competitors keep growing. It might be due to the outdated online marketing software you use. The salvation is to update or integrate your lending platform with an online marketing module that helps attract and retain borrowers, track results of your lead generation processes (to distinguish mistakes in your marketing processes), and provide CPC/CPA and partnership networks.
Sign #2: Customers choose your competitors first
With the growing influence of Millennials and Gen Z, a lending software solution is better to be flexible. If you notice that your competitors offer various communication channels and start steering your customers, it’s time to be worried. Current generations cherish the opportunity to choose whether to call the office, write a message in a chatbot or messenger, or fill out the application on the website and wait. Collecting loan applications from multiple channels and storing all the information in a single place allowing you to switch between them. The customer will highly appreciate the opportunity to, for example, reach out to a lender through a mobile call and continue it using a messenger.
Sign #3: You note security or functional breaches
As hackers target lenders and banks the most, top-notch cybersecurity software can insure the business against fraud and suits by angry customers. Working with people’s data like credit history and bank details lenders are liable for the information security. An outdated security module might create breaches for hackers who want to steal data and money. In this case, customers might cue to get repayments for damage, which might count millions of dollars. If you feel the lack of security, integrate your software with the newest security tools and follow quality assurance terms to do the best.
Sign #4: Competitors make major changes
Since the development of alternative credit scoring, the majority of lenders implement the technology to cove the need of thin-file borrowers. Non-traditional scoring allows choosing analyzed parameters and setting up scoring models for low probability of targeting non-performing loans. Based on AI and ML, the system learns from clients’ historical data and advice on which decision is better to make. If you still follow the traditional scoring approach, you’d better integrate your loan origination software with a dedicated scoring tool to increase loan leads and make accurate decisions.
Sign #5: Customers request capabilities you can’t provide
In the fintech domain, customers always know exactly what services they need from vendors. Listening to them will give insights about your solutions workflow as well as show what you need to improve. Providing your customers with a feature-rich personal account can improve their experience and be a deciding factor on whether to come back for more or not. An updated personal account allows borrowers to track active and past loans. They can monitor payment schedules and get notifications when it’s time to pay the debt. Working on customer experience, you will gain more users and could reach the new market.
The Bottom Line
No matter how many software issues you face, there’s always a team of tech-savvy developers who’re glad to empower your lending platform. BPMN, payment transfer, data validation, calculation module, CRM software, and other solutions can improve your business and outperform competitors. The main recommendation for lenders is to choose vendors wisely. If so, you get not only a professional team but also a reliable business partner.
Top 5 Signs Your Loan Origination Software Needs Update