Technology is changing the way businesses operate and how they can deliver immersive experiences to consumers in many sectors. The most recent advancements are helping shape the future of the finance industry. Despite complex regulations, compliance laws, and increasing security threats the march toward a digital landscape has changed the way the industry completes business transactions. As a financial or a loan origination business owner, harnessing the power of websites would be the best decision to assist you in reaching potential customers. To enjoy the full potential of your financial website, it has to be more professional and incredibly productive.
Let’s dive deep into understanding the technical requirements for loan origination and financial businesses. It’s all about building an amazing website that boosts your customer acquisition cycle.
Why Loan Origination businesses need customizable web forms?
Loan origination is a process which involves multiple steps that every user must go through while they are working to obtain a mortgage or any other type of loan. It also includes the response from the lender, who will review, process, and approve the application simultaneously. The process might look simple but it involves critical process like lending decisions, document preparation, compliance, and more. The factors that cover this loan origination process includes:
-Seeking different loan options
-Filling out forms
-Submitting requested documents
-Undergoing background checks and credit checks
-Reviewing an application
-Negotiating loan terms if allowed
-Finalizing the loan application process
-Approval of the loan application
It is essential for financial institutions to be quick and responsive to the borrowers and efficiently manage the loan data they have collected. Most of the loan origination systems today use static data entry forms which are very hard to customize. To manage data for any type of loans such as mortgage loans, commercial loans, personal loans, auto loans, and more, it is advisable to have a customizable and flexible web form builder. Integrating artificial intelligence or machine learning can also have its benefits. A system like this helps improve efficiency, mitigating risks, and improving borrower relationships.
What functions do I need in my Loan Origination System?
1. Customer Management
The initial step in any loan decision is collecting financial details and any other important information from the customer. Automating the process can mitigate the inconsistencies and delays that come with manually collecting financial and other mandatory data. Customer-facing web-based portals, application program interfaces (APIs), and financial algorithms can boost the digital onboarding of new prospects and existing customer data straight to the lender’s loan origination platform.
More advanced automated loan origination platforms are capable of receiving data feeds that pre-populate customer information fields within the origination platform. One of the most important features is the import of customer ownership hierarchies. A well automated credit origination platform enables multiple teams across departments or locations to access the same customer documents electronically, according to their needs and wants.
2. Credit Analysis
The most important stages of the commercial risk assessment process are spreading the financial data that has been received from the customer. An automated financial spreading process can assist the analyst by accurately and efficiently tabulating the borrower’s financial statements for the rating process. With this, the process can occur instantaneously and even allow the lender to pre-screen, rate the borrower, and provide an in-principle credit decision within a matter of minutes.
3. Credit Decisions
Automating the commercial loan approval process is about mining the appropriate data and information to make a credit decision. For many lenders, the credit application represents one of the toughest manual exercises in preparing and collating several papers because it is incredibly time-consuming.
An automated loan origination credit application solution combines the elements of the customer management module, financial analysis, and risk assessment which can help enhance your customer journey. In the market today there are a few exceptional applications that package all the stages together for credit approval where lenders of all sizes are arming their loan executives with laptops, smartphones, and tablet devices fully loaded with applications to make credit decisions on the move.
4. Portfolio Risk Management
Integrating a robust risk management solution to your loan origination software allows you to perform health checks on the internal, client, and regulatory reporting. It also provides complete transparency of the data and underlying calculations as per your business needs. With an inbuilt portfolio risk management module, you could:
-Improve and make swift decisions with an overview of risk key ratios from multiple perspectives
-Manual and traditional processes can be replaced by value-adding risk factor analysis
-Transparency in all the existing risk models, data inputs, and calculations
-Ability to compute pre-trade limits along with the post-trade risk calculations
How to build a successful financial website from scratch
Having a professional and comprehensive website is very important for online businesses. Due to the converging demands of the customers, financial institutions must cope with those demands in order to stay competitive. However, getting started with developing a website can seem intimidating for those who have never had their own website before. Here are some key indicators to build a successful financial website from scratch.
Good content is what sets your website apart from the masses and delivers the right message into the hearts and minds of your customers. Whether health-related, financial or any industry, content is always king. It is essential to have high-quality content and authentic information so that you create loyal customers and keep them educated about your business.
2. Creating flawless UI & UX
The UX of a site refers to the overall user experience going from one to the next, and the user interface (UI) plays an important role in delivering the intended experience through visuals. In less than the second, users make a decision about the design of a website, so you need to decide what you want users to do and make it flawless. Never make it difficult to find action buttons and it is essential to visually focus the attention on the main button versus a bunch of buttons on the home page. Make the UI & UX of your financial and loan origination website emotional so that users have a more positive experience using your product.
3. A Personal Budgeting Tool
Most people create a budget but they forget to follow it which leads to increased consumer credit card debt. If you offer your customers a personal budgeting tool in your website, you are proactively adding value and increasing the loyalty of your customers. This also helps in increasing your website traffic by reaching potential leads.
4. Interactive Forums
People love to interact and share their opinions. If you own financial or loan origination business, it’s a good idea to have an interactive forum that enables the web visitors to share their experiences, ideas, and experiences. This could be a useful way to provide your expertise by commenting on the best possible solutions for their financial issues and problems.
5. Debt Estimators
A more transparent way of converting your financial website visitors into customers is to have a debt estimator or calculator in place. This allows your customers to play with numbers, plan their debt consolidation or debt settlement.
6. Videos and Infographics
Selling is about storytelling, and videos are a great way to share a story as well as a great source to keep people on your website longer and engage them with your content. Having interactive videos and infographics explains your service offerings better.
7. Mobile Responsive
With responsive web design, all content and pages are flexible across all screen resolutions and devices which allows your customers to stay connected with your business from their handheld devices. As a financial company or loan origination business owner, it is essential to stay up-to-date with the most popular screen sizes and resolutions when designing web and mobile sites.
To help you get started you need website developers like SDI who has expertise in creating websites that provide a great deal of trust with your visitors. The first step is understanding your business model, objectives, and leverage our technical capabilities to offer a website that creates a sense of personal connection and confidence in your brand. Talk to Rob Lapointe today at +firstname.lastname@example.org to ahead of the competitive curve.