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Our vision is to revolutionize and automate the loan servicing workflow of the global financial community.
What Does Loan Servicing Software Do?
Loan servicing software manages and automates all the different processes involved with loans. Businesses who provide loans need servicing software to manage the entire loan life cycle.
To gain more understanding of loan servicing software, this article will cover what the software is, what it does, and the benefits of using it.
What is loan servicing software?
Loan servicing software allows businesses who offer loans (like banks, auto lenders, and fintech companies) to be able to handle all aspects of loans. This can include accounting, payments, processing, tracking borrower information, and reporting to a general ledger.
Loan servicing software is different from loan origination software. Loan origination software handles the part of the loan process that begins when a borrower fills out a loan application to obtain a loan. Loan origination includes things like the loan application, underwriting, credit approval, documentation, pricing, funding, and disbursement or rejection of the application. Loan servicing software takes over once a loan has been funded and given to a borrower and will continue for the life of the loan.
Some key features of loan servicing software are that it’s real-time enabled, has automated workflows, queue assignments, and pop-up alerts. These features help lenders easily manage their extensive loan portfolios.
What does loan servicing software do?
There are many things that loan servicing software does including:
Benefits of using loan servicing software
Loan servicing software can benefit both lenders and borrowers. It can increase efficiency and accuracy in loan management. Loan servicing software can improve the borrower's experience through timely and accurate communication, reduction in delinquencies and defaults, streamlined regulatory compliance, and real-time information and payments. Additional benefits include making the lenders’ job easier with automation that can handle a portion of the job while allowing borrowers the freedom and flexibility to manage their loans from a user-friendly customer portal.
Loan servicing software is an essential tool for lenders because they need it to efficiently automate all the tasks and processes involved with managing many loans. Without loan servicing software lenders would be overwhelmed using an outdated manual process that’s unreliable. They would also lose time and money.
Shaw Systems encourages lenders to explore loan servicing software options and what the best fit is for your business. We are the leading provider of modern web-based servicing and collections software with over five decades of experience. We provide out-of-the-box loan servicing configuration as well as customized solutions specific to fit client’s needs.
If you'd like to learn more about our loan servicing software, or how we can help you, contact us at solutions@shawsystems.com.