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CRIF Lending Solutions Blog

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Loan Origination System Implementation Best Practices: Team Structure

Congrats on finding the right loan software to match your digital lending or any other growth strategy. Unfortunately, as many of either you or your peer institutions can attest, now comes the harder part. Implementing a loan origination system can be a complicated and lengthy process. On average, it can take between six and nine months to complete, depending on the number of deliverables you have in your contract. Despite the myriad of providers selling loan origination systems, implementation strategies and procedures often vary significantly from company to company.

While your software needs dictate the system you purchase, it is important to consider how the delivery and implementation of your platform will affect your overall project in terms of timelines and quality of your particular setup. With so many options, it’s often difficult to find best practices for implementations that every provider should offer their new clients. That’s why the first portion of this multiple-part blog series will examine best practices that are essential for the fastest and most efficient implementation. One of the ideas we always try to reinforce with our content is that no two financial institutions are identical, so there is no such thing as a cookie-cutter solution that requires little or no configuration – especially if your institution wants to exceed the ordinary in terms of program ROI.

Team Structure

You provider’s implementation team must be separate from the support team. Why? Because even though the resource types needed for support and implementations are common across both functions, attempting to manage both at the same time has historically had a negative impact on how well either is done. When separated, each group can operate in a much more focused and efficient manner. The overall result improves the quality of both implementation and support for the financial institution and the provider.

It is equally important that the provider’s team have a project management office (PMO). In some cases, an individual operates in that capacity. The PMO should have extensive large-scale project management experience to oversee the provider’s entire project pipeline in terms of resource management. The rest of the team should include roles such as delivery/project managers, product specialists who perform business analysis and system setup/consulting, technical specialists for integrations, and report writers to create document templates for letters, notifications, disclosures and reports.

With the PMO overseeing all projects, it gives the provider flexibility to specifically assemble project teams based on the deliverables for a particular financial institution. As mentioned earlier, no two financial institutions and respective projects are identical, so assigning the same teams and resources for each job is less than ideal. The teams and resources assigned to an implementation should have consistent involvement throughout the duration of the project. Doing this means the footprint of the provider’s staff with each client’s project team is smaller and more conducive to relationship building and teamwork.

Better Implementations Equal Better Bottom Lines

While there’s much more to be aware of when looking to optimize your implementation process, ensuring the provider’s team structure is sound sets the table for everything else. Please keep an eye out for further installments of this multiple-part series.

Meritrust Credit Union identified the industry’s most trusted implementation team before it chose the ACTion consumer loan origination system to reduce human error, increase auto decisioning and create a vastly streamlined lending process. Auto decisioning increased from approximately 10 percent for both direct and indirect to 31 percent for direct and 40 percent for indirect. Automation for unsecured loans, which was next to nothing for the previous system, jumped to 41 percent. To read more about how the ACTion system has set Meritrust up for more efficient and profitable lending as well as a system that enables a comprehensive digital strategy, please click the button below to request our complimentary case study.

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Photo Credit: Mikael Hvidtfeldt Christensen

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