The use of loan management software is gradually gaining popularity among lenders and other financial institutions. Lending is allowing someone to borrow something often with an agreement that they would pay back within a specific time. It is a trade that has its roots deep into the history. Some historians suggest that it began in Greece with people exchanging goods for money or labor.
Since then, the trade has evolved tremendously to the current model which relies on the technology. Before then, lenders relied heavily on manual applications, filing, money transfers and collection. In the process, losses were incurred and the interest rates were always high. This was mainly because the risk involved and the costs of operations were high. But still, only a few privileged people could access credit facilities from institutions.
With integration of technology into this trade, the industry has faced out some of the challenges that were magnum. In the past, it was not possible to track mobile collaterals like a car. The banks always leaned on trust more than the assurance that comes with knowing wherever the collateral is. Today, a lending institution can comfortably trace where mobile collaterals are. Within minutes, it is possible to even switch off a system or a vehicle whose owner is in default.
Benefits of Loan Management Software
Using loan management software such as Jisort reduces the costs that often swallow the bulk of profits. One person can serve many more people in a day than in the past. One can comfortably request for a loan with the click of a button thus cutting travel costs for the borrower. The demand for offices in all areas of institutions operations is not necessary now. The end result of cutting costs has been cheaper loans to the consumers and more profits to the institutions.
With the introduction of systems, paperwork has greatly reduced and filing systems are now in soft rather than in bulky cabinets. The elimination of paperwork has also eliminated the risks of loss of data and files that were there. In case of fire or loss of a file, it meant that an institution incurred losses. Cloud based software such as Jisort can back up data for years without losing it. Cloud based systems allow people to work at any time in any place where there is network. This means that output per man-day is more and not limited by office space.
With systems, processing a loan now takes minutes. Before then, the whole process was lengthy and tedious, taking weeks or even months. Lenders used to do everything manually, from calculation of affordability, interests, to loan charges among other compliance details. This was not free of errors and omissions which kept the process moving back and forth. Today, the formulas for loan calculations are built into the system which is able to give results in microseconds.
Tracking loan processing was very difficult in the past. Borrowers always visited the lenders offices countless times or in most cases made endless anxious calls to try and track the process. However, with a system like Jisort, this is not necessary. The system’s intelligence is able to send messages to the borrower regularly or upon request to keep him or her updated on the loan process. This form of transparency has now strengthened the lender borrower relationship and trust.
In conclusion, the current fast paced evolution of technologies, benefits of using systems are becoming more and more. It is not possible to exhaustively say the limits of a system. It’s is only possible to encourage lending institutions to acquire a cloud based loan software like Jisort.