Keeping up with trends in lending technology
Throughout June, the American Bankers Associationand bankers across the country celebrated American Housing Month. That, coupled with the recent announcement that in April pending home sales hit a nine-year high makes it a great time to take a closer look at trending technologies in lending and what you need to do to stay in step with them.
Community banks that survived the mortgage collapse have turned to new and evolving technologies to shorten lending cycles and remain competitive. Let’s take a look at two of these technologies and their impact on loan operations.
Because let’s be honest, all that paper is crazy! It’s also expensive to store, and lost documents can put your bank at risk.
Utilize enterprise content management to decrease paper
That’s where enterprise content management (ECM) can make your life a whole lot easier. By integrating with your loan origination software (LOS), ECM solutions not only shorten the lending cycle, but make it more cost-effective.
Regardless of the required documents’ source or format – email, paper, and so forth – the right ECM solution manages the documents and surrounding information in a way that grants visibility into processes and real-time data, so your bank proactively complies with evolving regulations.
ECM also optimizes your process. Once a loan is in the system, electronic document workflow automates routing and decisioning to eliminate errors and decrease processing time. Also, if a required document has expired, is approaching expiration or is missing entirely, the solution instantly notifies users.
Use E-Signatures to quickly and securely complete loans
If you’re not making use of e-signature software, you’re behind the eight ball. In a lending situation, e-signature technology gives your customers the ability to sign documents from any location, dramatically accelerating the lending process. Transactions also become practically error-proof. A customer’s application cannot move forward without the completion of each required signature.
This is a huge time savings, as a simple missed signature can cause significant delays and even impact your bank’s ability to collect on the loan.
Taking things a step further, you can even integrate your e-signature and ECM solutions. This allows you to electronically obtain signatures from people outside of your bank by providing complete management of processes that require secure, electronic signatures in the cloud. You are able to manage the signature cycle within the ECM solution by automatically packaging documents and relevant signer information, sending this information securely to the e-signature vendor, and collecting the completed documents.
With the digitization of the consumer experience, lending will continue in the direction of becoming more automated.
So, how are you leveraging technology in your lending processes? What are your future plans? Tell us by taking this short survey and we’ll share the results and latest trends with you later this summer.