Key questions for FIs choosing a consumer loan origination solution
Choosing the right loan system is one of the most important technology decisions a bank or credit union can make. It is key to growth, customer experience and efficiency. Here are crucial points for lenders to cover when evaluating LOS capabilities.
Loan origination systems (LOS) can be simply defined as a digital platform that facilitates the lending process from application through the disbursal of funds.
While the definition may be straightforward, comparing different LOS platforms will reveal numerous feature gaps, integration challenges and implementation roadblocks. Knowing the right questions to ask LOS vendors can help banks and credit unions select the best solution.
Modernizing your lending origination requires seamless integration with your core system. While many core systems offer some loan origination functionality, these systems can be challenging to integrate with the third-party solutions driving today’s digital transformation. This contrasts with many LOS vendors who deliver more modern, robust features that have a clearly defined integration strategy.
For the most seamless experience, an origination system should originate both loans and accounts under one platform. The system should be able to originate a wide variety of loans (vehicle, personal, credit card, home equity) and accounts (savings, checking, certificates, IRA’s, youth), as well as provide cross-sell options. Here are some key questions to ask when evaluating modern digital LOS capabilities:
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