Decisions are only as reliable as the data used to reach them. We live in a day and age when decisioning for both lending and business in general are growing more sophisticated by the minute. As a result, financial institutions need to ensure their operations rely on sound and progressive technology that will deliver accurate and quick decision processes.
That’s why monitoring and reporting are essential capabilities when it comes to getting the most out of your lending program. But what key attributes of a loan origination system provide the best monitoring and reporting functionality? To help make things easier during the evaluation process, consider these three important factors when gauging how a loan origination system and provider will fit your operations:
- Avoiding outdated data: It’s not as obvious as it sounds - make sure that the data being monitored represents real-time activity in the system. Because selecting, aggregating and displaying the data puts a demand on system resources, some LOS providers may design their systems to present data that is less than real-time to minimize the impact on the system. Ask the question to be sure what you’re seeing is current, real-time data.
- Data types stored for reporting: The reporting available in the system is only as good as the data that is being retained. Ask the loan origination system provider if the data elements being stored are preset or if they are configurable. If data elements being used in the lending process are unique to your company or a particular program, you’ll want to be sure that they will be available in the data repository for future reporting.
- Standard vs. configurable reports: Standard or preset reports can be really advantageous to a lending institution that is implementing a new loan origination system because they provide ready results for initial analysis. Reporting needs will most likely change over time, so it is necessary to have the capability to configure new reports containing the newly desired information. A loan origination system that offers both standard and configurable reporting is the best option to ensure all your needs are met.
While these are just three key considerations when evaluating your loan origination system, they can go a long way to help your financial institution find a platform that matches current and future operations. CRIF ACTion provides the industry’s leading options to fit any institution’s direct, indirect and digital lending priorities.
For many years, Meritrust Credit Union’s consumer lending operations were considered successful in terms of application volumes and portfolio returns, yet representatives at the credit union felt that the site-licensed loan origination system being used lacked a good deal of automation for decisioning, core system integration capabilities and other important functionality such as electronic loan closings.
After partnering with CRIF ACTion, Meritrust’s auto decisioning increased by approximately 21 percent for direct and 30 percent for indirect. The credit union eliminated an estimated 120 clicks from the administrative process, and the platform’s DocuSign integration provided a more consistent member experience that has opened more doors for growth opportunities.
To read more about this success story, please click the button below to request a complimentary copy of our case study.
Photo Credit: C.P.Storm