The banking industry is in a state of disruption. Progressive non-bank lenders are making great inroads in commercial as well as consumer finance, and are forecasted to generate around $1T in loans. Banks are hampered by their necessary focus on regulatory compliance and lack the time and resources to drive innovation. As a result, they are falling behind in adapting to changing market conditions and at the same time are looking to augment their lending capabilities in order to drive efficiency and profitability.

Until now, lenders worked with multiple vendors and disparate technologies including licensed software, in-house solutions and legacy systems to meet all their loan management needs. These multiple systems have to regularly exchange data and are frequently out of sync. This means that lenders are unable to view their records in real-time, adding to the inefficiency, errors and the cost of operations. What lenders need is a technology that not only covers the entire loan life-cycle but also provides a unified view of data so lenders can close high-quality, compliant loans more efficiently.

A single integrated platform allows lenders to originate and fund both commercial and consumer loans while improving operational efficiency and quality. It ensures data integrity while lenders easily restructure loans, change interest rates and modify payoff options with just a click of a button. With a real-time integrated solution, lenders can view all the loans associated with a customer and greatly improve customer service across all channels. A single system of record also helps in creating custom reports and dashboards to analyze loan products and borrower profiles to improve risk management.. For example, fraud detection can be greatly simplified if lenders can get a composite view summarizing a customer’s transactions and activities. Lenders can easily monitor the data, and focus on patterns and analyses that provide insights into customer behavior.

Cloud technology changes the game for lenders by providing a clean, agile and unified system that can easily integrate disparate applications and consolidate data so that lenders can see the big picture. Every stakeholder is on the same page with respect to the status of a loan or an application. Additionally, cloud-based lending solutions have an open architecture enabling lenders to add their own “secret sauce” per their unique business needs. Lenders can easily integrate any ancillary application in their solution and still manage everything through a single system.

For a lender, a single source of truth removes complexity from the loan management process and facilitates real-time and clear operational visibility. Cloud loan management systems uniquely provide a single system of record and that critical single source of truth.