Case Study: Consumer Goods Lender Streamlines Operations & Improves Efficiency
Overview
A leading consumer goods lender faced mounting operational challenges stemming from legacy systems, manual processes, and inefficiencies in servicing a high-volume loan portfolio. Seeking to modernize and automate its loan management, the lender implemented Shaw System’s Spectrum Loan Management Software. The transformation was profound, resulting in a leaner workforce, streamlined operations, and vastly improved borrower responsiveness.
The Challenge
Before adopting Spectrum, the lender’s loan servicing operations were bogged down by outdated systems and paper-based workflows:
- Manual Loan Adjustments: Any change, such as an insurance refund due to a product return, required reboarding the entire loan into the system.
- Deferment Processing: Requests for deferments involved manual eligibility checks and processing, leading to delays and inconsistencies.
- Reporting Bottlenecks: Generating compliance reports or customer documents like payment histories or payoff letters was a time-consuming, manual effort.
- Lack of Workflow Infrastructure: Employees relied on printed work lists and paper approvals, resulting in inefficiencies, lack of visibility, and minimal auditability.
- Limited Automation: API use was nearly non-existent, creating bottlenecks in communication between systems and delaying critical loan updates.
The Solution: Implementing Spectrum
The implementation of Spectrum Real-Time Loan Management System brought an immediate and dramatic shift in operations. Key improvements included:
1. Automated Loan Rewrites
Previously, any change to a loan (e.g., insurance policy adjustments, returns, and product shipment delays) meant starting from scratch. With Spectrum, insurance refunds triggered by partial returns were handled automatically via APIs, canceling and rewriting policies with real-time updates:
“Before Spectrum, we’d have to reboard the entire loan. Now, it’s automated through the API.”
2. Streamlined Deferments
Deferment eligibility checks were automated using Spectrum’s integration with external decisioning systems. Spectrum APIs executed deferments instantly once criteria were met, reducing manual workload:
“We went from a few hundred full-time employees in loan servicing to just 70.”
3. Custom Reporting and Document Generation
Spectrum enabled agents to trigger instant generation of payment history profiles, payoff letters, and compliance reports with a simple activity code—eliminating manual compilation and typing:
“In the past, you’d have to go screen by screen. Now you click a button, and it emails the report immediately.”
4. Real-Time API Integrations
The lender integrated multiple systems—collections, insurance, bankruptcy processing, and payments—through Spectrum APIs, automating data updates in real time. For example, deferment eligibility was assessed using up-to-date tables pushed every 15 minutes, ensuring decisions were based on the latest information.
5. Workflow and Queue Management
Spectrum introduced structured queues for task assignment and follow-up. Previously, staff had no formal system to track or prioritize work:
“The idea of a queue didn’t exist. Everyone just had stacks of paper and walked around all day.”
Impact
The results of Spectrum implementation were tangible and transformative:
- 75% Reduction in Loan Servicing Staff: Headcount decreased from several hundred to just 70 through automation and workflow optimization.
- Improved Customer Experience: Requests for deferments, payment histories, and payoff letters could be fulfilled in minutes instead of days.
- Activities were logged systematically, enabling secure access control and full reporting for audits.
- Unlike rigid legacy systems, Spectrum allowed rapid development of custom features, such as activity-triggered SSRS reports and automated correspondence based on loan attributes and state regulations.
“Most systems say, ‘Here’s your data, build your own report.’ With Spectrum, we said, ‘Here’s what you need—we’ll build it.’ That’s a big differentiator.”
Conclusion
By implementing Spectrum Real-Time Loan Management Software, the lender transitioned from an outdated, manual operation to a modern, efficient, and highly automated servicing platform. The use of APIs, automated workflows, and customizable tools not only reduced costs and staffing requirements but also significantly improved responsiveness and compliance capabilities.
For lenders struggling with high operational costs and legacy system constraints, Spectrum offers a proven path to streamlined, scalable loan servicing.
To learn more about Spectrum loan management software, contact us at solutions@shawsystems.com
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