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3 Most Common Mistakes in Implementing Loan Management Software

  • 23 Oct 2024
  • 3 minutes of reading

How to avoid them?

In today's rapidly developing world of financial services, implementing a modern loan management solution is key to remaining competitive. However, transitioning to a new system is a complex process, and many companies make unnecessary mistakes during it. Let's examine the three most common ones.

Mistake No. 1: Insufficient Training

When choosing new software, always think about whether your employees are aware of its benefits; after all, it is they who will be using it every day. If they are not aware of the advantages and features of the given solution, they will not be able to make full use of its potential.

What to Focus on During Training

  • Identifying key users: the first step is identifying key employees from individual departments who should be given priority in receiving thorough training, as they will be in charge of setting up their section in the new system. These employees must receive the necessary decision-making rights from management to make this setup possible. After the setup is complete, these key users will be training the rest of their team in using the system.
  • Support from the provider: already at the stage of choosing which software to purchase you should identify what supporting material the various providers offer. High-quality videos, online documentation or interactive tutorials can make the learning process much easier and can greatly speed up the process of adapting the new software.
  • Comprehensive approach: training should involve not just the technical aspects of the software but also its strategic importance for the company. Employees should be acquainted with how the new system fits within the company's overall strategy and with what the company gains through this new software.

Mistake No. 2: Too Limited or Too Extensive Customisation Options

Loan providers may all operate in the same sector, but their processes and services are unique to each one. Therefore, loan management software must provide sufficient flexibility so companies can tailor it to their needs. If such flexibility is unavailable, two scenarios can occur – the company pays for features it cannot make of use, or needs to procure another solution to cover the gaps left by the original software.

But you can have too much of a good thing as well and even customisation options should have their limits. Systems that are far too modular can cause issues due to incompatibilities between the individual components and can make system maintenance needlessly difficult. Therefore, it pays off to closely examine the standard features of your chosen solution before you think about expanding your system

An example of a happy medium in this is our solution, OneCore Loans App. Its basic version already covers 90 % of the most common needs of loan companies, while also offering vast customisation options.

Mistake No. 3: Gaps in Communication with the Provider

The implementation of a loan management system is not a one-time event. On the contrary, it is a lengthy process that cannot take place without prior analysis of the needs of your company and subsequent fine-tuning of the solution. As a result, it is vital to create reliable communication channels, set up regular meetings and communicate your expectations to the provider.

An important part of this effort also is the formation of an implementation team representing various departments within your company. Neglecting any of these steps can lead to misunderstandings, but more importantly, to a solution that does not meet your requirements and does more harm than good.

How Does OneCore Deal with This Challenge?

In OneCore we are aware of the above-mentioned dangers. Therefore, when collaborating with users of our loan management system called OneCore Loans App we emphasized the following:

  • Clearly defined project managers: it is important to assign the project manager role on both the client and the provider side so that they can serve as the main communication mediators.
  • Regular update meetings: these meetings will ensure all parties are continuously informed of the state of the implementation and any issues and their solutions.
  • Involvement of key decision-makers: the team responsible for choosing the right solution must include decision-makers and those with control of the company's finances. These stakeholders will be able to quickly address potential obstacles and greenlight necessary changes.

Try OneCore

In this article, we bring you not only tips but also a solution. If you are looking for a powerful, reliable, and modern loan management system which will help you avoid the above issues, try the OneCore Loans App.

Why Loans App?

  • Designed for credit institutions: in its most basic version, the system already covers 90 % of the routine agendas of credit companies.
  • Coverage of all types of loans: Loans App supports both interest and annuity loans with an option for daily interest accrual, as well as infrastructure in the form of servers or the need to secure and back up the system by your means during the validity period of an active contract.
  • All-in-one system: a single interface for managing agreements, calculation models, tools for creating loans, payment calendars, accounting and other necessary features.
  • Benefits of the cloud: thanks to cloud-based architecture, you can access your data from anywhere in the world without having to bear the costs of creating your infrastructure.
  • Automation: with Loans App you can automate routine processes to not only save time but significantly reduce your error rate.

Take advantage of our offer for a free personalised demo version and try the OneCore Loans App for yourself! Simply contact us using the form below.

Recommended products

OneCore Loans App

Loan management software automates your day-to-day operations, streamlines the credit calculation process, and helps process large amounts of data. The solution covers all credit phases, from the calculation, through the loan conclusion to its termination and settlement.

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