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Istihara
Similar to any other kind of business, financial institutions (FIs) are continually striving to stay competitive while decreasing costs, increasing efficiency, and improving their processes. While all three may not be possible to do at one time, lending automation helps institutions capitalize on their already existing strengths. This helps increase profitability so these institutions can be sustainable for the future.
Lending automation can be the decisioning engine, the workflow engine, and integration to vendor networks. Lending automation is used in many ways by FIs including: credit and risk decisioning, enterprise origination, pre-screen, cross-sell, offer optimization and repositories, vendor networking, and risk modeling. Modern lending automation systems can be customized to cater to FI's specific needs and specifications so the solution may incorporate only one of these processes, or it may include all of them.
Not only does lending automation assist in individual business processes, but they can also be beneficial to the entire institution. Lending automation systems can be hosted externally and provide FIs with better uptime, tremendous capacity for growth, fast implementation, and a secure environment. The host of the software often has multiple clients and has server capacity that is much larger than the actual amount used. This capacity is available not only to allow for growth, but also to allow for surges in processing that may occur during a special promotion or increases in the amount of traffic (i.e. holidays).
An additional benefit offered by some lending automation providers is in the software solution itself; some offer the benefit of business end-user control. This allows the end user, without the use of IT, to change business logic as necessary. Modifications of this nature are used to respond to changes in the external environment, changes in consumer behavior, and can even be used in special promotions. With systems that can be adapted in this fashion, changes can be made in seconds, minutes or hours, rather than hours, days or weeks. This is beneficial because these fast responses can be implemented easily, with the assurance that the automated platforms will still function correctly. This ability to make changes leads to profit capitalization because the business logic stays relevant to the current environment.
Lending automation solutions allow for financial institutions to streamline processes and make their routine business activities more efficient and effective. These can be implemented one step at a time, or the entire enterprise system can be implemented at one time. The solutions may even allow for real-time changes to be made to the decisioning logic. Regardless of how many or how few automated lending solutions an intuition implements, they will be able to stay competitive and sustainable in the future.
Kelty Wallace is an online marketing intern at Zoot Enterprises in Bozeman, Montana.
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