Is Financial Cloud Leading the Way in Digital Lending?

posted by Chris Valentine

A recent study hints that 30-40% of a lender’s time is spent on repetitive and non-essential mortgage processes despite having digital lending services. What causes it? Legacy Applications, Lack of Automation, and Time-consuming Processes.

Though the world, in general, has progressed fast, the lending industry is slow in adopting the technologies and still on legacy software and dated technology architecture.

Major shortcomings include:

  • A lack of flexibility 
  • Manual underwriting processes and workflows
  • Issues with compliance
  • Lengthy verification processes
  • A lack of standardization 
  • No automation! Even in monotonous tasks!

Choosing to stay as is would not be wise because a digitally nuanced consumer is not going to put up with it but updating the existing rulebook can also hurt. It could be time and capital exhausting. Is there a better way to give borrowers a seamless experience? 

Hence, AI-powered l lending is the way forward!

In a home-grown lending software, servers and physical constraints can always be there. Not to forget, electricity bills mount up when you keep so many systems running. Most of these older systems require extensive coding, yet they are not secure against cyberattacks. To decompose the legacy Applications, you would have to deploy a specialized IT team: More time, energy, and expenditure! 

Financial Cloud helps lenders to minimize unnecessary overheads. Hosting applications in the cloud environment helps you save costs on physical security and on-prim servers. Moving to Cloud facilitates faster upgradations and lower maintenance: saving costs, time, and resources. The best thing about cloud-based lending software is configuration instead of programming. This means you could use dozens of features quickly, from the user interface, scorecards, credit formulas, stipulations, verifications, decision rules, workflows, and calls to third-party cloud lending services. 

Advantages of choosing Cloud for your Mortgage Process:

1. Data Integrity and Security

Financial Cloud allows you to store data safely and access it remotely. Even the remote storage is fully secured because of encryption tech. 

Financial Cloud also lets you conduct security audits of the whole system from the server to the devices attached. You could further fail-proof the security arrangements by embedding multiple-level authorization.

2. Seamless User Experience

Consumers are tired of long waiting periods and process flows that keep retracting. Finding a missing document from the whole list is difficult and leads to heavy delays. Most consumers want instant gratification. 70% of North Americans prefer net banking over offline banking. 

This means that the consumer base at large wants to move to digital. With legacy software, the move is going to be bumpy. Cloud tech provides a method and speed that dated tools just don’t have. The shorter loan origination cycle leads to happy borrowers and more sales.

3. Backup and Recovery 

The older lending Softwares require heavy maintenance and more resources. Servers crashing or an IT timeout trigger delays and unpleasant customer experience. Not to forget, it could expose your data to malware on the internet.

With cloud-based solutions, you could minimize those off-chances and further improve efficiency. Cloud allows you to automate your processes, minimize human intervention, and streamline your mortgage operations.

 4. Scalability 

As a lender, you may want to include products that enhance your borrowers’ experience and scale up your business. However, the scaling must be compatible with transparency, safety, and profitability. With your legacy software, upgrades are a task, and creating backups is a job for days! 

This could slow you down. On the other hand, the Cloud demands no programming, only integration. This means that you get control over what you add and what you remove. Your dependence on IT experts minimizes, and your Loan Origination System becomes easily expandable. 

 5. Less time in document verification

Cloud will help you pull out information from anywhere in the network; various lenders could collaborate and access each other’s authorized for sharing data. This would lead to better and quicker document verification. 

So now the question arises of how to choose the right technology partner who can help migrate you to the best cloud solutions. Tavant, a digital product and services company, has helped many Lenders and Banks with their AI-powered Lending Solutions. They have partnered with top cloud technology companies like AWS, Microsoft Azure, Google Cloud, etc., to provide the Best-in-Class lending solutions to the lending institutions over the last 22 years.

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