Loan Application Automation Software
A number of recent changes have shaken the financial sector, including Basel III’s increased capital requirements and lawsuits filed against banks and credit unions for misrepresenting the risks of mortgages. It’s no wonder, therefore, that banks and other loan originators are looking for ways to both cut back on fees to stay profitable while, at the same time, lending more, to less-risky borrowers. As one risk management company explains, decisioning software can help solve both of these challenges in the upcoming year.
When using manual data input to make decisions, increasing human interaction often means more mistakes and bias towards making loans, leading to a decrease in the number of qualified borrowers who are able to receive loans, or a rise in the number of risky borrowers who obtain access to credit. With process automation software, banks are able to rely on the data to make the decisions, sans human errors.
Not only does process automation software help cut back on subjectivity, it can also help turn the focus away from the monotonous application process and instead toward innovative and creative ways to offer new financial services.
By replacing the human application process, especially as more studies find that borrowers are most frustrated with the length of time it takes to receive a mortgage, and instead concentrating on better and more efficient ways of doing business that software cannot replace, innovation will happen faster, benefiting both banks and consumers.
Lastly, expectations for 2013 suggest potential growth in the demand for applications for mortgages and other loans. As consumer confidence and economic growth increases, investing in software to efficiently handle the growth in applications will prove to be increasingly important.