Loan automation in LMS transforms repetitive manual tasks into quick and efficient operations that greatly increase profitability. In addition, LMS improve services and customer satisfaction while reducing the rate of expensive errors to a minimum.
Automated loan management systems simplify work, accelerate workflows and bring significant reduction of expenses.
Automated reminders and notifications
Automated reminders and notifications reduce the likelihood of missed payments by providing clear instructions and due dates.
TIP: Automated notifications on upcoming payments ranked among the 5 most popular features of the OneCore Loans App in 2023. Read more about this and other features here.
Reduce human error to a minimum
Automation in LMS significantly reduces the rate of human error. Integration of advanced analytics and machine learning helps reduce risks and detect fraud.
Faster approval processes
Automated workflows speed up approval processes, make use of digital approval hierarchy and increase the efficiency of participation of other involved parties.
TIP: Using the OneCore Loans App allowed the company Propell to speed up its loan management operations by 60 % and almost entirely eliminated errors in data processing – all thanks to process automation. Learn how the OneCore Loans App helped them.
Software integration for even better financial management
Integration of loan management software improves the efficiency of financial management. That is because combining LMS with other financial tools brings two additional key benefits:
1. Immediate access to data for better decision-making
Integrated systems provide creditors access to up-to-date information about the state of loans to ensure transparency and full oversight. Access to performance metrics and key business data in real time allows creditors to make quick and effective decisions based on current data.
2. Regulatory compliance and audit trail maintenance: the key to flawless loan management
Compliance with regulations and maintenance of an audit trail are key parts of LMS thanks to flawless loan management and protection against regulatory issues.
The software immediately verifies observance of regulations at each stage of the loaning process, thus minimising the risk of non-compliance and ensuring flawless functioning.
Thanks to detailed audit logs for all transactions and operations, it is also easy to prove compliance with regulatory standards during audits – this increases the transparency and trustworthiness of your system.
Digital transformation of loans: the revolution in the loan world
The loan market has undergone a major digital transformation which brought several key improvements:
- Advanced automation: Improved efficiency of routine processes
- Improved user experience: Intuitive and simple controls
- Safe data storage: Cloud solutions for maximum protection
- Robotic process automation (RPA): Faster processing of routine tasks
- Digital document management: Easy access and ability to create loan agreements remotely
Loan management systems now include automated checks of regulatory compliance which ensure a higher level of security and strict compliance with regulations.
TIP: Read also about Three key trends in the world of credit software – AI, security and automation.
Cloud solutions: flexibility and security for modern lending
Cloud platforms, such as the OneCore Loans App, bring:
- Scalability and flexibility: Ability to manage the loan portfolio from any place with Internet access
- Higher operational efficiency: Improved team collaboration and faster workflows
- High level of security: Advanced measures such as encryption and two-factor authentication protect sensitive financial data
These benefits create a modern, efficient and secure environment for loan management.
Artificial intelligence: easier decision-making and loan personalisation
Artificial intelligence (AI) in loan management systems dramatically transforms the way loans are managed. Today, it enables:
- Personalised loan management: Customisation of loan conditions to individual needs
- Acceleration of the pre-qualification process: Faster and more efficient evaluation of applications
- Predictive analytics: Timely discovery of risks and issues with payments
- Access to data in real-time: Proactive risk management and better access to up-to-date information
- Machine learning algorithms: Optimisation of payment calendars based on the current financial situation
How to choose the right loan management software?
The purchase of a loan management system is a crucial step for every financial service provider. It is important to know what properties to look for so that the chosen solution truly meets all the needs and brings maximum benefit.
When buying a new LMS, consider the following five questions:
- Does the system have all the necessary features?
Check it contains key tools such as flexible interest calculations, accounting modules, electronic document storage, online access and CRM. - Is the user interface easy to control?
Check that the software is intuitive, able to adapt to various devices and that it includes user tutorials or training. - Does the system cover local specifics and legislation?
Check that the software meets local legislative requirements and accounts for the specifics of your region. - Do you prefer a cloud or an on-premise solution?
Decide whether you prefer a cloud system with lower initial costs or an on-premise system with a greater degree of control. - Are the employees ready for the new system?
Ensure your employees have the necessary training and support to use the new software efficiently.
TIP: Simplify your choice of loan management software with our guide. Read our article and get all the key information in one place.
Try the OneCore Loans App – for free and with no strings attached
Our cloud-based loan management solution OneCore Loans App offers high performance and reliability with support from local partners and integration with the Microsoft Dynamics 365 Business Central platform. If you want to learn how our solution can simplify the management of your loans, try a demo version free of charge and without any obligations.
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