What is Loan Servicing Software?
Loan Servicing Software helps lenders and financial services institutions with the preparation and management of the loan lifecycle after the disbursement of funds.
Many lenders choose to service their own loans internally and manage customer support on-premise.
Loan servicing software typically automates routine tasks such as amortization schedules, borrower and customer support management (i.e., customer queries and information regarding borrowers, co-borrowers, guarantors), collections management, and collateral tracking.
Automating loan servicing tasks help to minimize human error when tracking and reconciling loans.
This helps increase revenue, improve customer satisfaction, reduce expenses, decrease turnaround time, provide more control over regulatory compliance, and simplify the management of loan portfolios.
Loan servicing typically integrates in with customer relationship management (CRM) software. It often commonly integrates in with other loan tools, such as loan origination or other software that covers full-cycle loan management.
Loan Servicing Software features
Loan servicing software should include the following features:
- Credit decision outputs
- Importing, tracking, and storing of loan related info
- Collections
- Reporting
- Payment processing
- Manage multiple borrower accounts
- Versatility to work with many types of loans, lenders, amortization schedules, interest methodology, and business processes