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February 21, 2024
Lending is a profitable business, which is why global companies live and die by their bankers. However, running a successful loan business is impossible without the right loan management software.
Lending without technology isn’t just a step backwards. It’s an atrocious choice that can adversely impact your customers, profitability, and long-term standing in the lending ecosystem. To navigate the complexities of lending, having the right technology at your disposal is indispensable. Attempting to run a loan business without leveraging technology guarantees stunted growth and limited success.
As you explore options for your new loan management software, identifying essential features that can elevate your business performance is paramount.
Now that you know the importance of having technology as an ally in lending, what features should you look out for in an LMS? Let’s take a look at 7 of them below:
When selecting loan management software, prioritize multi-channel capabilities. Steer clear of loan management software providers who insist you should build channels separately. With Lendsqr, you gain instant access to various channels, including web and mobile apps, USSD, APIs, and more. For a new lender, having a web channel is vital. Still, the versatility of additional channels like mobile apps is equally important to scale and succeed like the big players of the ecosystem. Additionally, various channels ensure broader market reach and accommodate diverse preferences, fostering more inclusivity. Check out reasons why a digital lender must have a loan app.
When settling for a loan management software, ensure it lets you easily adjust Risk Assessment Criteria (RAC) according to your business needs. Because the market is always evolving, a RAC rule that seemed a perfect fit at a time may not be as effective anymore. It’s important to have the freedom to configure decision engine settings without unnecessary restrictions whenever required. As your business grows and borrower needs evolve, having the ability to modify decision engines within your LMS becomes top-priority.
Different strokes for different folks. Your chosen loan management software should give room for the configuration of fees to enable flexibility. Charges like card payments, interbank transfers, or late payment fees should be accorded to borrowers based on specific needs and circumstances. This level of customization enhances borrower satisfaction and helps you stay responsive to market changes. Learn more about setting up fees on Lendsqr.
While you may have your risk assessment, it’s always best to make informed lending choices after a credit bureau gives you the ‘clear’ signal of an intending borrower. With Lendsqr’s loan management software, you get access to not just one but all three credit bureaus in operation in Nigeria. Find out how to use multiple credit bureaus to double your loan business’ protection.
One size does not fit all. A proper loan management software should let you easily tweak and customize your loan products, terms, and conditions to fit the changing needs of borrowers or market trends. For example, with Lendsqr LMS, when a borrower approaches one of our lenders for the first time, they’re offered a fixed loan amount. But in subsequent visits, they enjoy more flexibility with increased loan amounts. This kind of flexibility keeps customers happy and helps our lenders stay ahead by adapting to market shifts and updating their offerings as needed.
Your loan management software must have the compulsory ability to book loans manually. This is especially important if the bulk of your target market is located in regions with low to no technology. While digital lending offers convenience and technological advancement, manual loan booking capabilities are great for reaching underserved populations or for providing varying options for your customers. Find out why manual loan booking is still relevant for lending.
While you may be trying to bridge the credit gap and bring credit closer to your target market, scoundrels, AKA fraudsters, may see this as an opportunity to play a fast one on you. This is why you must choose a loan management software that offers you security and extends security to your borrowers. Security measures such as KYC, liveness check, image recognition comparison, blacklist database and more. Here’s how you can combat fraud as a digital lender.
Every decision you make has the potential to create ripples, impacting not just your loan business, but the lives of your borrowers and the broader economy. Now, we’ve equipped you with the necessary information on the key features to look out for in a loan management software. We’re confident it’ll guide you to make the right choice that’ll lead to lasting success.
If you have more questions on how to get started, send us a message at [email protected].
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