Choosing a Successful Loan Origination System: Top Factors to Consider
Loan Management Solution Software

Without a doubt, there has been a paradigm shift in the way consumers expect the lending industry to work. Your customers expect instant approvals on loans, so the use of old-fashioned Loan Origination Process flow is bound to lead to bad outcomes for lending companies given their excessive time and human resource requirements and the inability to keep up with increasing regulations. Additionally, traditional loan origination processes run the risk of giving rise to fraud and human errors due to the huge workforce that is required to handle the rapid growth in the demand for loans.

What can be done about this? 

To be competitive in the market, you need a Loan Origination Process Flow that is easy to use and caters to the customers every need from the time of origination to the point of disbursal. Also, you need comprehensive, fail-proof Loan Origination Support to go with your software to ensure that you are in control if there are any unexpected issues with the process.

For such a system, you have to look no further than CloudBankin, the revolutionary loan origination software that we have created. 

Now, how can you be sure that ours is the optimal solution for your business? 

As you read, you will find plenty of answers to that question: we have covered the top seven benefits that accompany our product that will propel you to the top of your industry. 

1. Analytics

Analytics can be leveraged to benefit any process-intensive industry, and the loan origination process is no exception. With the right analytics, lenders can gauge how well the present loan origination processes are doing. Specifically, the following information will be available.

 Average time an underwriter spends on loan evaluation. The underwriters who make the best decisions when it comes to subprime applications. The processes that can be automated to save time. For instance, integration with Credit Bureau APIs will automatically display in an LOS the consumer’s credit score and eligibility for borrowing.

Lenders can ascertain the loan structures and borrower characteristics that lead to better portfolio performance. In particular, the following aspects will be made known.

  • The impact of extending terms to 80 months as opposed to 72 months.
  • Qualities of subprime borrowers that correlate with 90+ days past due delinquencies.
  • Market segments that can be taken advantage of with the proper applicant information.
  • LTV rates that will significantly bring down the number of defaulters for vehicles that are over five years old.

With CloudBankin at your disposal, you can effortlessly leverage all that information and put it to good use. 

How? You can do so as a result of the following features of the analytics that our loan origination solution offers. 

  • Provides easy access to the required data in business-friendly terms. 
  • Uses individualized dashboards for better understanding of the data.
  • Automatically emails the respective staff with the relevant data.

2. Customer-friendliness

Given that most of the world has shifted to mobiles, loan origination solutions ideally need to provide a seamless customer onboarding experience on those devices. Notably, the customer should be able to complete KYC requirements via mobile itself by means of an OTP. This is to ensure that the load on the front end staff is lightened and the customer has a pleasant experience using the service. Custom interest rate suggestions are another feature that will be of value for your client. 

You May Also Like: Loan Origination – A Critical Step In Mastering The Loan Process

3. Automation capabilities

If your loan origination system has the ability to automate mundane tasks, such as verification processes, paperwork, etc., it will save you a lot of money and time and enable you to scale your operations rapidly with the resources at your disposal.

Besides, the process of loan approval is faster, which will delight the customer. Another often overlooked advantage is that automaton reduces errors in the process significantly.

Crucially, it will give the dealers more time to engage the customers. With automation, they will further be able to provide customers with customized offers that are better aligned with their lending profile.

Now, what are the main automation functionalities offered by a good loan origination software?

  • The ability to improve constantly by tracking and analyzing the automated processes.
  • Easily configurable funding and underwriting workflows.
  • Auto eliminate applications that are not qualified.
  • Rapid decision making based on predetermined credit policies.  
  • Automated calls to various credit data services, credit bureaus, etc. to obtain data that facilitates effective decision making.

4. Customizable and easy to integrate with 3rd party systems

Ensure that you purchase loan origination software that can be customized to meet the requirements of your niche/organization. Besides, it needs to seamlessly integrate with the other software systems that a lending company has, such as product, title production software, document providers, and pricing and eligibility technology as well.  

5. Compliance with policies

Appropriate quality checks during the lending process are essential to ensure that the company does not run afoul with the regulatory bodies. This is why, when choosing a loan origination system, you need to prioritize purchasing one that supports compliance with all the necessary regulations while being able to effortlessly integrate with your workflows. Regulations can be anything from the rule that lenders need to verify the borrowers details in a reasonable amount of time to rules, such as borrowing cap. 

 It is worth mentioning that, before funding, the system needs to validate whether the loan is in compliance with both internal and external regulations put in place by the Reserve Bank of India.

6. Proper customer service 

One of the most crucial things to look out for when it comes to a loan origination system is the customer support and service level commitments that the company is offering. Having enhanced Loan Origination Support will save you a lot of trouble going forward because the responsiveness of the LOS provider’s support team will largely determine the level of service you can offer your clients. With CloudBankin, you can get round-the-clock chat support from industry professionals. 

7. Pendency Check 

Another important feature that is required in a loan origination system is the ability to perform a Pendency Check, i.e. the system needs to validate the list of checks before approving a loan. The checks can be a list of documents for specific products, trigger CBs,  etc.

8. Configurable Rule Engine

A unique feature that loan origination software, such as CloudBankin offers is the ability to add any number of parameters at any point of time through the LOS by means of a configurable Rule Engine. This is because, for underwriting a loan, every touch point of a customer has become a decision parameter. 

Current landscape

As the pandemic rages on, you may be wondering: how will it affect borrower behavior? More importantly, how  can I capitalize on this? 

Across the world, governments are responding to the economic devastation of the lockdowns due to COVID with relief loans and schemes on a weekly basis. Consequently, there are lots of consumers who are in the market for a loan. However, using a traditional loan origination system will lead to you losing potential clients, as everyone expects the loan approval process to be fast and over the internet.

This is where a proper loan origination solution comes in. 

With the right system, you can cater to these large numbers of customers who are in need of a quick loan. Given the number of countries that have a stay at home order, having a feature-rich LOS that has a self-service application form will let you add new customers and give out more loans than before without straining your workforce.


As you get inundated with countless loan requests, the smart and agile  CloudBankin LOS, which has all the features discussed above, will prove to be a lifesaver.  It will go a long way in saving you money, satisfying your customers with quick approval times, and reducing the burden on your team.

Reach us to know more!

Frequently Asked Questions

What are the stages of loan cycle?

The first stage is loan origination, which includes the steps listed below. Loan Application - Borrower information is gathered Loan Processing - Entails processing and validating the borrower's identity. Underwriting - Entails calculating the borrower's risk percentage. Loan Approval/Rejection - The lender determines whether or not to approve or reject the application. Loan Disbursement - The lender disburses the loan amount after approval. The second stage is loan management, where we come across. Loan Repayment - Entails the collection of loan repayments in instalments. Loan Closure - When all repayments have been made, the loan is closed.

What is LOS process?

A loan origination process is a process in which loan application is applied by a borrower and a lender assesses it to lend to the borrower. It includes a series of stages. They are: Loan application: gathering borrower information Identity of the borrower is processed and verified during the loan processing. Underwriting determines the borrower's risk exposure. Lender decision on whether to approve or reject the loan application. Loan Disbursement: The lender disburses the loan amount following loan approval.

What is LOS in banking system?

A loan origination system in the banking system is characterised as a platform for managing and automating the loan life cycle, from loan application to loan disbursement.

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