10 reasons to opt for cloud based loan management system

The financial services industry is seeing unprecedented changes. Whether it is customer demands and expectations driving new business models or technology driving business transformation or increasing competition from non-traditional...

Snehal Fulzele 6th January 2014


The financial services industry is seeing unprecedented changes. Whether it is customer demands and expectations driving new business models or technology driving business transformation or increasing competition from non-traditional players or increased governance and regulatory scrutiny – the business environment has never been so turbulent. But as it is usually the case with changing business dynamics, change comes with a package of opportunities and threats. The new set of opportunities requires new approaches.

Cloud computing can play a significant role in the transformation of a financial services business by reinventing the business and operating models. A cloud computing platform helps a lending business to assemble, connect, configure virtualized technology resources to meet business needs, making it possible to rapidly deploy business services at much lower costs. The figure below captures the primary set of business needs satisfied by a cloud-based loan management system:

benefits of cloud based loan management system

It is then easy to understand why the financial services industry is expected to spend in the range of $26 – $50 billion by the end of 2015 accounting for 15% – 28% of the total IT spend by the sector. [Source: 1. Economist 2. American Banker] Clearly cloud services are becoming increasingly popular in the financial services industry.

With respect to the time-to-market, below is the snapshot of how the development and deployment time varies between an on-premise Vs cloud based enterprise application developed on Force.com platform, with estimated savings of 78% in time-to-market:

Estimated development time

Now, to present the final stroke of the business case to opt for Cloud based loan management system, let us evaluate the estimated savings over a 5-year period for 100 users. Below is visual representation of cost savings offered by cloud application Vs on-premise application:

Est. TCO resized 600

While the software licensing and maintenance fees may vary from vendor to vendor, the overall savings in the total cost of ownership still remains significant (in the order of 60-90%). (You may also use this tool to build your business case for cloud computing at:  http://www.salesforce.com/platform/tco/)

Well, above were some of the objective arguments in support of the business case for opting cloud loan management system. But there are a few soft business benefits too which cloud enterprise lending solutions can offer:

  • Collaboration: Your employees can be connected 24×7 and do not need expensive VPN tokens. They can collaborate and contribute even when on the move. Improved collaboration can eliminate business bottlenecks as well as enable your organization to make faster and more accurate decision to strengthen customer relationship.
  • Data integrity and security: A cloud based loan management system will benefit from the state-of-the-art data centres that protect your data and prevent system outages.
  • Document management: The cloud allows you to keep all your files in a centralized location with provisions for real-time sharing and updating removing the bottleneck in communication. Some of the good cloud enterprise lending solutions will also enable automatic document creation, storage and sharing based on business rules, streamlining the entire document management.
  • Redefine customer experience: Using the cloud applications and services lending institutions can now offer consistent customer experience across multi-channel touch-points in a secure way. With the multi-channel data lending institutions can also further optimize and enhance customer experience allowing them to monetize customer relationships, not just transactions.

How Cloud Lending Inc. can be a partner in your growth?

Cloud Lending Inc. is a customer-focused company providing consultative solutions to your unique business needs. Through our comprehensive, industry-specific turn-key solutions which can be customized to meet your business requirements we not only engage with clients but also partner with them in their growth. Schedule a demo today, to learn how Cloud Lending Inc. can be a partner in your growth

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