MonJa Blog: The roles of automated software in small business lending

The Roles of Automated Software in Small Business Lending

In Featured, Small Business Loan Underwriting by Yulia GnatyukLeave a Comment

4 Minutes Read.


MonJa Blog: The roles of automated software in small business lending

The small business lending sector was revolutionized with the introduction of Fannie Mae’s Desktop Underwriter in 1995. The many roles the automated system filled in the lending process convinced financial institutions of the value of investing in a business lending software solution. Such software essentially operates as a fast, accurate employee who can make routine decisions when given certain parameters.

Fast, Accurate Worker

MonJa Blog: The roles of automated software in small business lending

Speed and efficiency are critical to small business lending because small business loans in general have higher origination costs than larger loans. Because small and large loans must go through the same process, the way to make the smaller loans more profitable is to make that process as cost-effective and efficient as possible. This is where a business lending software solution can help.

Speed is perhaps the greatest advantage of the automated lending process. In a few moments, the business lending platform can gather, verify and cross-check information that might take a loan originator and underwriter hours or days to organize and review either manually or using legacy data systems. Faster processing of loan applications means lenders can expand their business without increasing the amount of time needed, while at the same time improving customer service with faster loan decisions.

An automation lending solution also improves speed of lending processes with its high degree of accuracy. Because necessary data need only be entered once – and even this part of the process can be partially automated – delays or inaccurate decisions due to missing or erroneously entered data can be all but eliminated.

Decision Maker

MonJa Blog: The roles of automated software in small business lending

Even though underwriting requires a degree of judgment, many of the creditworthiness and risk parameters used by the lender can be programmed into an automation lending solution. This allows even relatively inexperienced personnel to quickly screen loan applications, improving customer service by providing a fast answer to loan inquiries.

Automated underwriting solutions allow a high degree of customization as well. Credit scoring and risk assessment standards can be set up for different types of loans, which is particularly helpful in small business lending as many small business clients may not precisely fit conventional approval criteria.  

The biggest advantage the decision-making capabilities of an automation lending solution provides a lender is to allow the institution to efficiently devote its underwriters’ time to applications that need further review, rather than having them process “normal” loans that fit a programmed template and can be handled by the software system.

The MonJa Solution

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MonJa’s unique software is a powerful tool in the small business loan decision-making process, utilizing automated data extraction and customizable credit risk parameters to quickly assess a potential borrower’s eligibility. The system’s flexibility makes it suitable for loans of all sizes, and it can be easily integrated and deployed with existing systems and processes, whether you are an online or non-profit lender, credit union or traditional bank. With all the necessary process and data analysis tools in a single platform, MonJa’s software solution enhances the speed, consistency and manageability of the small business lending process, allowing you to expand your reach and improve your bottom line. 

To learn more about what MonJa’s innovative small business lending solutions can do for your  business, download the free e-book today. 

Request MonJa's Small Business Loan Underwriting Demo Today!

Our platform supports C&I, CRE, auto and other small business loans.

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