Personal loans are one of the most popular types of consumer lending products available.
Personal loan software can help cash lending businesses manage many different types of personal loans, including unsecured and secured personal loans, lines of credit, and overdraft protection lines.
The best solutions offer a wide range of capabilities to simplify the process for both lenders and borrowers alike.
This blog post will discuss how to find the right personal loan software solution for your business so you can deliver on customer expectations today.
Why Personal Loan Software Matters
The demand for personal loans has never been higher. As the world recovers from the economic impacts of the coronavirus pandemic, more and more people are turning to personal loans to consolidate and pay off debt.
In addition, the expectations of consumers through the lending process are changing. In 2020, 28% of personal loans taken out by Generation Z and Millenials came from traditional lenders, while 39.8% were issued by fintech lenders. Today's borrowers emphasize fast, streamlined, online experiences when it comes to personal loan capabilities.
Data from Mckinsey shows that getting the "best rate" is equally as important as "exceptional customer service" when it comes to mortgage origination. FICO has also found that one-third of customers will abandon an application process if it is not available through a digital channel.
For lenders, this means meeting customers where they are and providing a seamless digital experience is more important than ever.
Personal Loan Software Capabilities
The best personal loan software can help lenders provide the modern, fast and easy-to-use online application process that borrowers expect today.
Additionally, a well-designed lending solution will serve as your business's central hub for all things related to consumer lending. This may include:
- Borrower self-service
- Continuous loan servicing
- Loan distribution and reporting
- Compliance management
It's important to choose personal loan software that includes the ability to support a variety of loan types and offers loan-level reporting and analytics. This will ensure that your business is prepared for future demand and growth.
The best personal loan software can also help lenders address compliance requirements for both federal and state laws governing the collection of debts.
By creating an efficient means for following up on delinquent debts, you can minimize the potential for costly legal penalties.
Personal Loan Software Benefits
Personal loan software can provide a range of benefits throughout the lending process. This may include process automation, improved borrower experiences, and reduced manual errors.
Here are just a few benefits of personal loan software.
Improved Borrower Experience
Personal loan software improves borrower experiences by automating the application process.
This may include automating the credit check process and providing a fast online loan application.
It also makes it easy for borrowers and lenders to manage all their loans in one place, improving communication between the two parties.
The right solution should be customizable to meet your business’ needs.
Lenders will also benefit from being able to customize the borrower experience, which adds a personal touch and helps set them apart in today’s crowded digital lending space.
Processes that are automated can reduce the risk of manual errors, which will help lenders comply with consumer lending regulations and minimize the chance of delinquent debts.
This can be a huge benefit for businesses that want to focus on growing their lending portfolios, rather than managing administrative tasks.
Seamless User Experience
A good personal loan software solution will provide a seamless borrower experience, from beginning to end. This means an easy-to-use interface and quick response times.
It should also be mobile-friendly so that borrowers can access their loans at any time, from anywhere, and lenders can engage with borrowers through their preferred device.
The right personal loan software also includes user-friendly features that can be easily customized to meet your business’s unique requirements.
These include real estate databases, lender branding options, and custom email templates.
Reduced Manual Errors
Personal loan software can help reduce the number of manual errors made in the lending process. This is due to the automation of many tasks that are prone to human error.
For example, credit checks can be automated to reduce the chances of a mistake being made.
Similarly, personal loan software can reduce the number of errors in determining how much a prospective borrower can afford to pay.
This is because it takes into consideration all personal and financial information before reaching its conclusion about an application.
The reduced risk of human error means that lenders using this type of software receive more accurate results, which improves their overall accuracy rates and reputation for your brand.
Faster Processing Times
Another benefit of personal loan software is that it can help speed up the processing time for loans.
This is because many tasks that are traditionally done manually, such as data entry, can be automated with the right solution.
Similarly, the right email automation software can help reduce the time it takes to send out loan applications and follow-ups. This improves customer experiences and reduces the cost of labor.
Centralized Data Management
Personal loan software brings all of your data together under one roof.
This can be extremely helpful in cases where you have multiple branches or are working with third-party partners.
It also makes it easier to track performance and make changes when needed, ensuring your loan and reducing costs at all stages of a cash lending business’s operations.
With the help of an expert, it should be easy for lenders to find what they need optimized for peak performance.
Improved Operational Efficiencies
Operational efficiencies can be easily improved through the use of personal loan software.
It can automate and speed up processes such as credit approvals, account management, and collections.
This means that your business can run more smoothly with less manual input – which is great for reducing human error rates.
Borrowers can expect fast loan approval processes, and your employees can expect more consistent predictable workflows.
Loan Distribution Control
Personal loan software can improve loan distribution control. This means that lenders have more visibility and transparency into where their loans are being funneled.
It also provides a higher level of security against fraudulent activities.
A good personal loan software solution will help you keep track of your entire loan portfolio, so you can make better decisions about optimizations over time.
Customized workflows help to ensure that specific lenders’ workflows and procedures are followed across teams and locations.
This can help with regulatory compliance, as well as lending best practices.
The best personal loan software will be flexible enough to adapt its features and functions around your business needs, rather than vice versa.
Improved Customer Experiences
Personal loan software should help you meet rising consumer expectations by delivering a low-effort, streamlined borrowing experience – beginning with the application process through funding.
The best personal loan software will help lenders manage the entire lending process, including origination and funding of loans.
Choosing The Best Personal Loan Software For Your Business
When it comes to finding and implementing personal loan software, don’t go it alone. Work with an experienced provider that understands the needs of cash lending businesses and has a track record of success in this market.
Such a partner can help you find the right personal loan software solution to:
- Gather information on your customers
- Put together complete applications
- Determine eligibility
- Prequalify borrowers
- Manage the entire lending process
- Detect data inconsistencies
- Customize forms and offers
- Deliver a best-in-class borrower experience
The right digital lending solution can offer all of this, but you need to work closely with a provider to find one suited for your business needs. Every lender is different, so take your time before committing to a personal loan software.
Personal Loan Software Can Help Manage Many Types of Consumer Loans
With all of these functions available in one place, your team has the opportunity to spend less time managing the lending process and more time developing customer relationships.
The best personal loan software provides a secure portal for consumers, giving them convenient access to their borrowing data. This allows lenders to build stronger relationships with current and prospective clients.
If you're looking for personal loan software for your lending business, we have the tool you need. Infinity Software lets you qualify, approve, and service your borrowers in the storefront or online.
Additionally, our built-in collections suite makes it easy to manage your borrowers' repayment schedule, enabling you to keep them happy and reduce delinquencies.
Our personal loan software tracks all the data points lenders need for customer management and risk analysis.
As a result, Infinity Software can help cash lending businesses like yours deliver an outstanding experience every time—online or offline.
Schedule a demo today to learn how Infinity Software can help your business!