3 Mistakes To Avoid With Loan Management Software

The lending industry is full of competition, and to stay ahead you need to keep up with the latest technology. In fact, when surveying over 700 business professionals in different industries across Australia and Asia, CPA Australia’s Business Technology Report 2021 found that embracing technology was a major determinant of business success. Many growing businesses were focusing more and more on their tech strategies to find new customers and become more efficient.

Businesses that aren’t keeping up with technology trends run the risk of being left behind. But building your own loan management system from scratch can take a long time, and you might still be left with a product that doesn’t fully meet your needs. Luckily, the FinTech boom of the 2010s led to the development of many cloud-based loan management systems that can be tailored to your needs.

With so many options, the question becomes how to choose the right loan management software for your lending business. We want to help you make the transition to software as simple as possible, so we’ve highlighted some key mistakes you should be aware of. Understanding these common mistakes to avoid with loan management software can help you get the most out of your new investment.

Mistake #1: Not enough training

Why spend money integrating new lending software packed full of features that nobody knows how to use? Training plays an important role in the successful implementation of loan management software, especially in the beginning when business disruption will be at its highest.

Learning how to use the software is important, but just as important is training that focuses on the benefits of the software. After all, your employees will be the ones using it every day. A good implementation team will explain the reasoning behind the shift to lending software over more traditional look book management.

Some things to focus on when it comes to training include:

• Comprehensive training: your employees should finish training with a good understanding of the technical features of the software, as well as a better understanding of how it’ll complement the company’s overall strategy.
• Identify key roles: it might not be possible to train each and every individual employee at your business. Instead, the first step should be identifying key roles or department heads for comprehensive training. Once these key team members are training, they will be able to pass on knowledge to other team members.
• Extra support and resources: remember to ask not just what training will be provided, but how it will be delivered. Are there any extra resources available, like online guides, video tutorials, or demos that can supplement the training process? All of these tools can make the implementation process faster and easier.

Mistake #2: Lacking customisation

Out-of-the-box software might seem like a great idea for fast implementation. But what you gain in speed, you lose in flexibility. No two lending businesses are exactly the same, and you need custom features that can be tailored to your unique needs. If your lending software isn’t flexible, you’ll either end up paying too much for features you don’t need, or you’ll need to find additional software to fill the gaps.

On the other hand, you don’t want a system that goes overboard on customisation, making the program needlessly complicated to use. Too many modular elements can turn system maintenance into a headache, especially if you need to hire internal staff to look after your software once it’s live.

Look at all the features of the lending software you’re considering, including what comes as standard and what customisation options exist.

Mistake #3: Poor communication with provider

Upgrading from Excel spreadsheets to a loan management system doesn’t happen overnight. It might not even be a one-time event. Implementation can be a lengthy process as you find the right balance between the needs of your company and the limits of your chosen software. Finding the best solution might take some fine-tuning, so it’s vital to have reliable communication channels with your provider.

Check what options are available to you before committing to a loan management system. Do you have a dedicated account manager? What is the expected response time when you need support? You might want to ask where the support team is based, as teams in different time zones might not be much help to you when things go wrong.
 

How Biz Core deals with these challenges

Biz Core is aware of the challenges lending businesses face when searching for the right loan management software. To help you make a decision that’s right for your business, we focus on solving these challenges with the following:

Dedicated onboarding team

Biz Core comes with an in-house team for both the technical and operational side of onboarding. We’ll help you and your team understand the platform, from the application form through to loan product set-up, workflow automations, and reporting. Comprehensive training means your team won’t be left stuck with a system they don’t understand.

Customisable system

As part of our onboarding process, we’ll set up your very own staging environment and take you through the customisable options. Our off-the-shelf package already includes a range of useful features, but we’ll help you fine-tune everything to meet your business requirements.

Australia-based support team

The support doesn’t stop once your system goes live either. You’ll benefit from a HyperCare Period to make sure you feel supported and comfortable using the platform. And our Australia-based help desk and customer relationship manager is always available should you need further assistance in the future.
 

Benefits of Biz Core

Biz Core understands the unique requirements of lending businesses, so we’ve put them at the centre of our product development. With Biz Core, you’ll have a loan management platform built to service local Australian and New Zealand needs from the get go. You’ll benefit from:

• Low set-up costs: Biz Core set-up costs are some of the lowest in the industry, and you’ll only ever pay for what you need.
• Data security: keep your business and customer data safe with built-in controls and real-time global cybersecurity intelligence powered by Microsoft Azure Cloud Security.
• Easy integration: robust 3rd-party integration facilities will make your life easier by keeping everything in one place.
• Automation: save time on repetitive tasks and unlock your true potential by taking advantage of automation functions.
• Real-time data: accurate reporting and data will help you make better business decisions and keep you in control.

Try Biz Core today!

Biz Core gives you your time back, meaning you can focus on the important stuff like building relationships and growing business opportunities. Our lending software is designed to be an end-to-end solution that helps your business reach new heights. Book a demo to start exploring Biz Core for yourself, or contact us today.
 

 

Loan management software FAQs

What is the best loan management software

Loan book management software can improve your business in so many ways. The best ones out there include the following features and benefits:

• Streamline business processes
• Transform paper-based records to a central digital system
• Cloud-based platform with unlimited data and document storage
• Easily manage client records
• Get paid on time with automatic payments and missed payment notices
• Keep track of applications, payments, and leads with automatic daily reports
• Remove human error from the equation
• Improve application turnaround rate
• Enhance the customer journey

What software do loan companies use?

A complete loan management software is the perfect solution for lenders looking to upscale their business, enhance customer satisfaction, and save on loan servicing costs. The full suite of features included in Biz Core’s loan management software provides you with everything you need to service loans from start to finish.