The lending landscape is growing increasingly competitive, and the loan process can be frustrating and time-consuming. A loan origination system (LOS) can provide clarity to the intertwined data web that the loan lifecycle weaves, but not every LOS is built the same. Here are four critical criteria to consider when assessing a modern-day LOS for your financial institution:
- Implementation and integration –
You don’t want to spend time and/or money on software you don’t use. If you can’t successfully implement a product, it’s not worth the time or monetary investment. When considering a LOS, ask questions about the implementation process. Is it done in-house or by a third party? How long will implementation take? You need to have a clear plan for implementation and how much will be required of your staff to implement the software successfully. You all have your regular job duties to complete on top of this additional project, so make sure your team has the appropriate bandwidth before the project gets underway.
On top of implementation, it is vital to ensure the software easily integrates with other products you are currently using, including your core. Find out if you can pull the necessary data from the core and how long it will take. What additional third-party applications, if any, are supported for integration by the LOS?
- Intuitive interface –
“A user interface is like a joke. If you have to explain it, it’s not good.” As you research various LOS, don’t overlook the user interface. The dashboard should be set-up so that different user roles can access the data they need to do their job effectively and efficiently. The experience should be configurable to the user, irrespective of the role. Also, be sure to explore the navigation menu to ensure that you can easily navigate to the areas you need. If you cannot quickly and easily find the information or function you are looking for, will that software really make your job any more efficient?