Thanks to Habile Technologies for this Guest Blog Post!
For this blog post, we are very excited to share a guest article written by one of our Mifos partners, Habile Technologies! They have given us insights into the 12 factors one should consider before choosing a loan management system!
Below is a synopsis of the articles 12 factors but to learn more about what Habile does, check out their website here!
12 Factors To Be Considered Before Choosing A Loan Management System:
1. Broader Coverage
It is vital to explore a loan management solution that covers an array of uses from mortgage documentation or asset financing to commercial leasing or consumer loans.
2. User Friendly
It is important to have a Loan Management System that is simple to setup and configure to any business’ needs no matter how simple or complex they may be.
3. Centralized Solution
A good LMS ensures all of its loan application data becomes centralized into a holistic and singular view for the loan department.
4. Speed & Agility
The quick approval and sanction of the loans in an institution is an asset to the institution and an attraction to the clients.
5. Authenticated Access
Accessibility of loan management system is of utmost importance to the NBFCs for sanctioning of loans and enabling a robust company review and monitoring process. Granting permission via credential-based access helps the financial institutions to access the relevant documents from third-parties quicker and without waiting for unnecessary approvals.
6. Technology and Customer Service Support
A good Loan Management System harnesses the technological advancements to provide the best experience of disbursing loans and strengthening the non-banking financial institution’s customer service function.
7. Cloud-Based or On-Premise Deployment
Cloud computing is playing a vital role in the financial sector and improving business efficiencies. It makes the lending process more feasible, more productive, efficient and available at lower costs.
8. Better Third Party Integration
It is vital for a loan processing model to work in sync with a lot of other systems in order to provide the team up-to-date information.
9. Microservices-Based Architecture
Having a microservice based loan management system would ensure that the system is credible, agile and better suited for the sanctioning of loans.
10. Web and Mobile Compatibility
Application based services in Android and iPhones have become common in today’ mobile driven economy and can be used by the lending industry in order to make the LMS more efficient.
11. 100% Secure Operations
Since a lot of important data is just one click away, one can streamline the entire management of loans and all concerned documents through credential-based, secure cloud-based data management.
12. Scalability Cost
With a LMS a lot of the cumbersome work is eliminated. To get a true picture of the ROI the product delivers, all costs that scale up the product need to be factored in.