How to Accelerate Loan Lifecycles with the Right Technology

Both borrowers and lenders want the loan management process to be as worry-free as possible. The lender can benefit from spending fewer resources per customer, while the borrower enjoys simplified sign-up processes and an improved customer experience.

Fortunately, modern technology can help transform the way lending processes operate, in particular, loan lifecycle management solutions.

As the name suggests, these solutions are designed to manage the loan lifecycle, beginning with application submission through to the moment the loan is paid off. The process involves many documents of different formats, ranging from application forms to credit checks.

To streamline and consolidate these processes, financial institutions can turn to modern solutions, including loan management systems (LMS) that integrate with existing enterprise content management (ECM) solutions to automate and streamline document workflows, removing opportunities for errors to creep in.

Loan Management Challenges

Whether dealing with personal loans, mortgage applications, or professional loans, the lending process can be complex and cumbersome. Many of the documents involved in applying for and receiving a loan contain the borrower’s personal and financial information — the handling of which is subject to significant regulations. At the same time, these documents must be easily accessible by all involved parties, often including multiple departments or external stakeholders.

With the recent strengthening of privacy rules in key markets thanks to frameworks such as GDPR, CCPA, and KYC (Know Your Customer), achieving both ease of access and security is becoming harder, especially for organizations still getting by on paper-based processes.

Documents must be made accessible to the teams, but they must also protect sensitive customer information. Satisfying those conflicting demands can be challenging, but failing to meet them can lead to non-compliance penalties or extended response times — which translates to unhappy customers who may be fed up with delays.

Worse, these delays inevitably compound because of the multi-stage process of application, underwriting, offer, and approval – each of which can only begin once the previous is completed.

The Benefits of Loan Lifecycle Management

Loan management systems can offer banking institutions a solution to avoid harsh penalties and upset customers by consolidating loan documentation in a secure, compliant way. These solutions offer lenders workflow automation capabilities, real-time data, document tracking, monitoring and reporting functionalities, serving as a one-stop shop for everything from managing existing borrowers to better understanding prospects. 

Adopting an ECM solution enforced with loan lifecycle management capabilities is crucial to ensuring a positive customer experience with minimized response times. 

These solutions can accelerate loan lifecycles at every stage by: 

• Helping lenders remain compliant with industry and know-your-customer (KYC) regulations by automatically notifying lenders of required or missing documents
• Instantly displaying any missing documents and verifying completeness
• Guaranteeing compliance with easily configurable retention schedules to ensure records are held for the correct period
• Tracking documents and data from those yet to complete at the same level as existing customers, making it easier to understand and capture prospects

Yet, even the most advanced LMS doesn’t necessarily represent a complete solution when used in isolation. While it can act as a repository for the documents and data needed to complete a claim, an LMS cannot usually share them or ensure that files stay secure after being distributed to users across the organization. 

These challenges can be overcome by adding just one extra tool – a safe, secure, and powerful document viewer solution. 

A Complete Solution for Loan Lifecycle Management

Though many of these features are standard across loan management solutions, introducing a powerful document viewer on top of the existing software can help take loan management speed and security to the next level. 

Manage Incoming Documents 

With so many different file formats coming in from fragmented sources, document viewer technology provides the account manager with fast, easy access to any file type for review, manipulation, annotation, and indexation.

Ensure File Completeness

Faster access means faster approval. Account managers can easily identify and flag missing documents or incomplete information and approve, reject, or annotate file types from within a single interface using content viewer technology.

Enable Fast Collaboration

Document viewer technology makes it easy for team members to collaborate on the same document safely and smoothly without having to be in the same location or organization. Users don’t even have to have the programmes they would usually need to open the more specialized documents, as all the heavy lifting is handled by the document viewer. 

Ensure KYC Compliance

Loan documents contain large amounts of sensitive information that cannot be shared or stored in an unsecured environment. Document viewer technology makes it easy to ensure that these sensitive documents are properly secured by offering automated redaction capabilities and preventing them from being downloaded or shared without the proper authorization. 

The Missing Piece of the Puzzle

Whether at the individual or enterprise level, modern society relies on access to safe, secure, and trustworthy financing. This lending network is only possible thanks to the vast work that goes into verifying, assessing, and managing every loan. 

While there is no way to avoid the necessity of this work, the time and effort needed to manage it can be reduced with the support of technology. Lenders can use an LMS enhanced with document viewer solutions like ARender to eliminate access and collaboration barriers, comply with tightening security demands and regulations, and reduce application lifecycles to improve customer satisfaction. Together, these technologies can keep the wheels of modern finance turning and ensure that funds can be delivered safely where they are most needed. 

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