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The financial lending landscape evolves constantly and often community banks and credit unions falter when adopting new technology. You need to make sure customer data is safe for your reputation and make sure you have fast data access when undergoing audits, all while maintaining a competitive edge.
An obvious money-saving choice is utilizing a cloud service platform, but you must take care to maintain ultimate control of your data to ensure its integrity. You can obtain the benefits of outsourcing underwriting technology and keep your data within reach by using MonJa’s loan underwriting portal. All your loan history is stored in an encrypted data format in a secure location for ease of use and access.
This also improves your credit team’s productivity and satisfaction since work shifts from hours of manual number crunching (manual statement spreading and ratios calculation) to a more customer-forward approach. Your organization can make the shift with the right tools and guidance and by keeping the following in mind.
Adapt or Die, The Community Bank and Credit Union Struggles
The 2008 economic crash and subsequent bailout and initiation of the Dodd-Frank legislation put large conglomerate banks on an upward market trend. Community banks and credit unions were left with two options: to either go against the entire sound financial model historically practiced and potentially close shop or be acquired; or adapt to emerging FinTech options.
You may not realize that falling behind community banks and credit unions also put small businesses in a vulnerable position. Archaic manual processes take too long, and becoming efficient meant smaller lenders would drop non-lucrative small loans. Those small loans can add an easy income stream when your credit department does not need to manually process them.
Automate Underwriting as Best Practice
A key FinTech opportunity falls within artificial intelligence (AI) and machine learning (ML) software platforms that can process commercial loans of any size and complexity (including those with multiple entities) at the same speed. Utilizing cloud-based software for statement spreading as MonJa also creates an additional benefit to your institution: the huge reduction of cost to maintain internal servers.
Fast adopters can obtain a significant competitive advantage by providing an easy revenue stream with improved underwriting processes. Here are the top three additional benefits of going digital:
- Faster loan approval. Utilizing manual underwriting means your typical commercial loan takes about two to three weeks at best to be evaluated. When you automate the application, assessment and approval process, this can be cut down to days or sometimes even hours. For example, the existence of MonJa Smart Scan Technology means your team doesn’t have to spend time manually parcing the tax returns and financial statements. All they have to do is login to MonJa portal and upload borrowers scanned financials (PDF files). The documents are processed behind the scenes and data is extracted to generate the credit memo draft that can be downloaded within 24 hours or less. You can think of MonJa Smart Scan Technolgoy as a substitute for a junior credit analyst who has to spend hours to get the data out of financails. Impoved workflow also reduces the potential for errors. Your business borrowers are happy with faster results and loans can be underwriten much faster.
- Better risk evaluation. You can remove the fear of risk default by structuring your parameters based on the size, location, history or other data compared with large data banks of existing data sets. The advanced credit analysis tools can be safely accessed via portals in some digital platforms, keeping information safely housed in a protected environment.
- Elimination of bias. Institutions still using paper and manual techniques run an increased risk of errors, which is obvious. Your lending department could also be imparting bias when manually assessing applications. Not only does this lack efficiency, but it is also not an auditable model. The best digital solutions remove individual bias and base decisions on previous outcomes across multiple parameters. You can also incorporate real-time audits and assessments throughout the life of the loan.
What Makes MonJa Superior to Other Loan Underwriting Platforms
MonJa offers the benefits of outsourcing your underwriting technology but with key differences. You can use the portal as a substitute for a full-time credit analysis or save your credit team’s time. Plus, you maintain access since all the loan history and other data are housed in your personal portal. The data is available for annual reviews and is quickly presented to regulators and auditors, making the information transparent. Integration with core system as well is loan doc systems (for ex.: LaserPro) is avaialable at no extra fee.
You can reach customers where and how they do business by adding a mobile app. This keeps you competitive with national banks and online lenders too. The stats are impressive when you automate underwriting. With MonJa’s product line, you can increase loan origination volume by 20% and reduce processing time with more effective results by 70%, all while decreasing process time by 42%.
How to Get Started
Contact MonJa today to see the automated underwriting platform in practice. A pay-as-you-go pricing structure and no implementation fee mean your organization can get started relatively easily, no matter your size. The cost scales with your origination volume, meaning that you pay to scale.
The experts at MonJa will work with your team, and the portal-based cloud application will allow for a rapid integration so you can get started quickly. If you’d like to read more, visit our blog that outlines five success stories of businesses that have utilized FinTech, including automated underwriting, to remain competitive.
If you are interested to learn more and to see how our statement spreading software works, email your request to [email protected] or [email protected]. You are always welcome to schedule the free demo here at your convenience: https://calendly.com/james-wu-1/demo/
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MonJa Smart Scan Technology speeds up commercial loan underwriting by up to 70%.