September 29, 2022
Technology

5 Key Features of Loan Origination System (LOS) Lending Software Must Have

lending software

Have you experienced customers complaining about applying for loans because they can’t complete the entire process? It’s too many manual processes and heavy paperwork to complete before loan releases. Applying for loans online is sometimes frustrating. A loan origination system (LOS) with confusing menus makes borrowers upset. The pain stakes should be addressed instantly by a loan manager or lender.

Having a lending software solutions like p2p advances your loan procedures and lessens the tedious loan application, repayment transactions, credit monitoring, and others are a must, whatever size of your lending organization or a banking institution.

In this article, we’ll discuss the main features of a loan origination system (LOS) and why it is essential to a loan management system. Let’s dive into first what is Loan Origination System or LOS is.

What Loan Origination System (LOS)?

Loan origination is a process when a borrower applies for a loan, and the lender disburses it or rejects the credit application. The loan origination system (LOS) is one of the most necessary parts of any lending software. The loan origination processes cover some of the procedures your customers undergo.

LOS is a software development system created to perform the following functions:

Simplifying the long and tedious lending application is needed.  It provides you with everything they need to make loan applications decided faster and easier. LOS or lending software solutions have helped many lenders become more efficient in their daily operations. Also, the lending software development process ensures that the supply of all necessary modules to manage loans for customers.

How Does Loan Origination System (LOS) Software Works?

It’s essential to have a lending software solution whatever loan type you’re offering to your borrowers. Investors commonly use lending technology software in various loan servicing functions. It includes peer-to-peer or P2P lending software, business loans, consumer loans, personal loans, mortgage loans, student loans, auto loans, etc. Whatever type of loan product you offer, there is the right LOS system to answer your technical needs.

An automated loan origination system (LOS) can process massive applications simultaneously. The loan origination system uses alternative data points to check customer eligibility.

LOS uses qualification criteria to decide how much money to be released. Lenders have different scoring structures like credit scores, risk scores, outstanding balances, and others.

Lending processes are heavily regulated and detail-oriented.  An accurate quality check is needed to ensure compliance and ensure risk-free transactions. LOS plays an essential part to verify transactions before the release of funding.

Main Features of Loan Origination System (LOS)

LOS has many features that make loan transactions easier and faster for all parties involved. The loan origination system organizes, stores, and manages data about each customer. The main features of LOS are:

  • Expert Domain Management
  • Seamless and Easy to Navigate
  • Increased Security and Privacy
  • Advanced SaaS and Lucrative Technology
  • Multiple Cross-Functional Platform Integration
  1. Domain Management Expertise

The first and foremost key feature we have to consider is domain management expertise. Hundred thousand active websites are running on the web every minute. Nearly 252,000 new websites are running every day. In addition, more than 160 million .com and .net domain registrations are built in 2021. 

Domain management experts keep your LOS website or platform up and running every time to be ahead of your competitors. A mobile-friendly and responsive website gives customers more flexibility to reach your company anytime, anywhere.

  • Seamless and Easy-to-Navigate

An easy-to-use interface and processes are equal to saving more time and effort evaluating each application. That results in an accurate customer’s pre-approved score criteria to serve more clients faster and easier.

A custom loan management software opt you to make changes in menus, dashboards, customer qualifications, credit score criteria, and access permissions to meet operational needs.

  • Increased Security and Privacy

A secured lending software makes sensitive data safe by using encrypted SSL protection, multi-layer authentication, secured data storage, and round-the-clock software penetration tests.

  • Advanced SaaS and Lucrative Technology

Software-as-a-Service (SaaS) powered lending technology solution connects lenders and borrowers in a cloud-based app over the internet.  Take advantage of cloud-based technology to keep your origination system (LOS)  running smoothly.

It minimizes online transaction loads and maintains a faster load time speed. Connecting the lending software to the cloud makes the LOS interface operate conveniently anytime, anywhere.

  • Multiple Cross-Functional Platform Integration

Lenders using so many one-function platforms separately can eat up too much time. In a comprehensive integration, your LOS must connect to other third-party APIs (Application Programming Interface). That’s all platforms in one lending software solution.

See also how Hexaview assists a client in improving the integration of third-party digital transaction systems in the existing application here.

Conclusion

The 5 key features a LOS must have are necessary to get the best result for your loan management software. An efficient LOS means reducing the manual effort to serve more borrowers and minimizing human error to achieve a better customer experience.

If you’re planning to develop your LOS-based lending software, send us a message and request a quote from our Hexaview Team at [email protected].

author
Ajay Yadav is a data driven digital marketer and a technical blogger that loves to write on trending technology topics including Artificial Intelligence, Machine Learning, Cloud Computing, Salesforce CRM, SAP and many more. He is always eager to learn new things and concepts.