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A Guide to Selecting the Best Loan Servicing Software

Regardless of the size of your business operation, it is crucial to have a quality software system that manages your loan portfolio. A proper suite to manage this aspect of your business will inevitably save the business a lot of time and energy in the long run.

Picking the right software will require an inside-out approach. Through this method, you will need to have an in-depth understanding of the nitty-gritty of your business before venturing to external sources for the solution. Aside from a loan management platform, CloudMyBiz also provides business consultation services to help with this process. To better appreciate everything, a number of internal factors have to be identified and sorted out, if required before executing any decision.

What Does the Business Need?

It’s important to maintain a realistic view of where the business currently resides in the grand scheme of things, but also have a well thought out projection of where the business should be directed towards.

This will require a strategic approach that caters to the most important features you look forward to having in your service your loan portfolios. You will need to prioritize a list that identifies the gaps in your current system and an approach that will work for the new system.

The best thing you can do for your business is pick a loan structure that aligns with your company’s goals and projections. This means that regardless of the number of loans you’re servicing, your focus is on the success of the business.

According to Ingvar Petursson, Chief Strategist with Slalom Consulting in Seattle;

“The goal should be to find a strategic partner in your software company so that ultimately, the software will meet your goals not just today, but in the long term.”

 

Generally speaking, getting a clear picture of your business processes, goals for the future and the hurdles standing in the way of those goals is essential in picking the right software.

What Does the User Need?

The successful implementation of your software will naturally require having ample information about the potential users/staff of the organization. Establishing everyone involved in the process, from top management to the loan servicers who will be working in the program every day is crucial. This sets the implementation up for success to make sure every part is delegated to a specific person.

This process will increase the efficiency of the program because you will know where your staff spends most of their time and the aspects that need to be tweaked or otherwise.

How Do You Deliver the Software?

This requires you to decide how you want the cloud lending software to be made available. Considering that there is a multitude of softwares in existence that vary based on qualities, you must choose wisely.

There are typically two ways of getting a new software; one is through purchasing the license and the other is a cloud-based approach. Picking either option depends on the personnel available.

For example, if you have a robust IT staff, then it is better to just purchase the license and let them navigate the software. However, if your team doesn’t have a dedicated IT department to handle such tasks, then using a cloud-based approach is preferable since it is remotely managed, serviced and maintained by the software provider.

Don’t Stretch It

Every business is focused on making a profit but at the same time, improving the quality and pace of activities should be just as an important factor when considering your goals. In this case, it is important to strike a balance between the quality of software used and the amount spent on procuring it.

This means that regardless of the type of software you pick, you have to make a budget that accounts for both direct costs like software and hardware cost, as well as indirect costs like the number of employees performing tasks that a dependable system will do automatically.

You’ll Need a List

When you’ve cleared out all the internal factors, the next step is to look for potential solutions. This requires for you to consider your needs, your vendor, and tech support.

You will need certified and reliable software, which will require in-depth research through numerous tools available. Your main goal is to come up with a short list of possible solutions.

After the list is created, the next step is to streamline your search towards the software that accounts for all internal factors that are a must. Focus on all aspects of the software in the streamlined list, considering the price, customization capabilities, security features, “licensed / SaaS” options, and other features important in your evaluation.

You could even run demos of as many softwares as possible, getting a feel of them and knowing which one will satisfy your needs in all ramifications.

Put it to Work

At this point, you should have a crystal clear idea about which software will be perfect for your loan servicing business. Ensure that you keep detailed records of all transactions relating to the decision and contact support if you encounter any issues.

Read manuals, watch tutorials and get as much information from numerous sources on the internet. Ensure that the software resides in a safe and secure PC environment, handled by the right people and used for the right purpose. It is an investment towards the success of the business and should be treated with the utmost level of delicacy.

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