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HomeTechnologyCustomers’ Views for Commercial Loan Origination Software 

Customers’ Views for Commercial Loan Origination Software 

Over the last decade, digitalization has shaken up the loan industry in so many ways that banks haven’t had enough time to address each one. The customer experience (sometimes known as ‘user experience’) is an important part of lending that can make or break a commercial loan origination software. With a plethora of options available to customers, any company that fails to become more user-centric risks losing potential clients. 

Pain Points of Customer Experience

Some older and current loan origination systems have user experience issues that have troubled the banks who have implemented them. The following are the major annoyances:

➤Inefficient Document Management: Some lenders have yet to migrate to paperless or partially paperless loan origination processes, and consumers are expected to visit many branches. Lenders are still struggling to get document management streamlined, even with e-KYC and v-KYC programs.

➤Awkward Usability: In today’s era, most end-borrowers deal directly with loan origination systems via webforms and lending apps. The design of a customer’s user interface is an important aspect of their onboarding process that lenders may easily get wrong. Usability is a huge difficulty, from a nasty-looking homepage to complicated input fields.

➤Inconsistent Omnichannel Lending: Digital lending has broken down barriers between servicing channels, with lenders offering loans via their websites, email marketing, and mobile apps. However, this has resulted in disparities in the features/services offered across platforms, causing friction in the user experience for customers.

➤Lack of Self-Service Options: Many banks have yet to integrate self-service initiatives throughout their channels, whether it’s conducting e-KYC from the comfort of your sofa or getting updates on loan applications through chatbots. In the post-COVID-19 environment, this has become extremely important.

➤Speed, Downtime, and Upkeep: An out-of-date and unclear loan underwriting system can seriously hinder the ability of the banks to acquire new customers. For lenders who have a large number of field agents, they require a quick system that doesn’t have any downtime or requires little maintenance.

How an Automated Loan Origination System can Bring a Better Customer Experience 

Smart Data Collection & Analytics

The first step in improving user experience is to understand client needs and thinking patterns. Numerous client data points, such as website visits, clicks through SEO ( search engine optimization), mobile apps, and so on, are required for this. For a better knowledge of consumers’ spending and repayment behaviors, data such as previous lending activities, credit ratings, and loan profiles can be acquired using automated loan origination software.

Streamlined Multi-channel Experience

Today’s loan origination software should be designed in a way that is divided across various channels – some customers prefer in-person banking at a financial institution’s branch, while others prefer online banking on their laptops and tablets, and tech-savvy borrowers only need to press a few icons on their phone apps to get the full banking experience.

New Technology Adoption

Regulations for banks are tightening, escalating borrowing costs. It helps in this scenario if these organizations can adopt new technology-driven business and operational strategies. Lenders can minimize customer acquisition costs, de-risk existing loan portfolios, and provide a good value proposition for clients by leveraging the capabilities of Machine Learning (ML), Artificial Intelligence (AI), and Big Data through advanced loan origination platforms.


Giving consumers an excellent user experience is now a focus for banks, whether it’s a mortgage, an auto loan, a company loan, a personal loan, or a gold loan. Although digital loan origination has cut costs, increased efficiency, and minimized geographical issues, business sustainability will only be achieved if lenders have automated loan origination systems that improve client experience.



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