12 Features That Makes A Loan Management Software Outstanding

November 17, 2022
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12 Features That Makes A Loan Management Software Outstanding!

Digital Lending Report, November 2018, by the Boston Consulting Group (BCG) projects that with the introduction and penetration of India Stack (UPI) in the banking system, 50% of the loan seekers with internet access tend to buy loans online. In fact, out of the total population, there are about 55% of consumers with a digital footprint out of which an astonishing 23% purchase retail loans digitally today. Loan ticket sizes influenced digitally are found to be marginally higher by 4% in the case of SMEs. In short, the report concludes that Indian Digital Lending is a $1 Trillion Opportunity over the next 5 years!

One of the major factors that facilitate such humongous growth is that technology has allowed for a reduction of time in processing loans. People no longer have to wait for months to get credit. The report studies lending models of various companies, and the average time of processing an application and disbursing loans, when everything is done digitally, in just 10 minutes!

With such concrete data, it becomes absolute that every lending company needs to go digital. It all starts with identifying a reliable loan management software partner that can understand the nuances of your business, and blend in seamlessly with your existing operations.

Here are a few filters that any loan management software you are considering for your business must go through -

Though technology has become sophisticated, one shoe size cannot fit all. The software should be able to customize itself to cater to the peculiar requirements of your business operations, and moreover the specific needs of all of your consumer segments.

  • Personalized to your requirements

 The software should command the least coding expertise from your end. It must encompass modern tech-stack such as API gateway, SOA Enabling, etc. and possess a cloud-based infrastructure for utmost cybersecurity. It should be able to accommodate futuristic technology such as open-bank architecture and update itself without hampering existing operations.

  • Coming-of-age Tech Infrastructure

It should be able to pilot new products/services in a relaxed environment. There has to be a defined structure of introducing and implementing new products, services, or processes with minimal effort and time.  

  • Scope for Innovation

The software should be legally-compliant at all stages of the lending cycle. Implementing appropriate taxes, interest rates, invoice discounting, and other norms as directed by the RBI should be automated.

  • Fulfil Legal Compliances

A good loan management software with all its high-end integrations at the back-end, shouldn’t be complicated to be used by the employees and the consumers. A neat lag-free and easy-to-understand user experience and interface are what the software should provide.

  • User-friendly for Employees & Consumers

The software should be able to fulfil not just current business requirements i.e. the short term goals, but also help the business work upon their long term vision with data-backed reporting and intelligent analysis.

  • Comprehensive reporting & analytics

The software should deploy artificial intelligence to automate the majority of the manual tasks at a lower cost. Automation will make the entire lending cycle secure by eliminating the scope of errors and frauds. The AI-backed analysis will help the company understand its current and future growth prospects.

  • Smart Intelligence and Automation

Even though automation will take care of maximum manual processes, you still need people to handle the overall management. The software should be able to easily introduce, modify, or change the hierarchy and allow for a confusion-free automated delegation of responsibility at each stage of the cycle.

  • Ease of Delegation

Accounting has always been a tedious affair. However, with improved lending operations, if the software offers automated accounting solutions, and allow for seamless integration of other accounting services that a company might use, it would lead to a transparent and error-free accounting process.

  • Integrated Accounting engine

The software must offer scope to implement automated rules for individual products, services, and stages of the lending cycle through a rule engine that will lead to a risk-free efficient workflow without the need to constantly monitor the operations.

  • Set pre-defined rules

Though debt recovery and collection is the end of a lending cycle, it involves various sub-processes in itself that can be completely automated. From sending personalized reminders to customers about due dates to geotagging to accepting payments digitally and raising receipts, everything should be automated and regulated by a loan management software.

  • Automate Debt Recovery and Collections

Even with all its merits, the software system might face issues and you might need assistance with it. The software company should have a skilled and able customer service that is quick to respond to your queries and resolve them.

Now when you start looking for a reliable loan management software partner, we hope it passes through all the filters we laid out.  By the way, we at All Cloud offer a comprehensive full-suite lending solution that delivers on all of the above features and much more.

You can check out our solutions here - AutoCloud Enterprise-Loan Management Software

Episode 09
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