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Any lending business faces a challenge with modern banking processes. How can your institution balance the loan amount with the time spent underwriting to ensure that loan processing is profitable and functions as a revenue stream generator? Luckily, your institution can use Fintech automated underwriting software to achieve that.
For example, statement spreading software these days is becoming a powerful ally for your entire credit team. It’s like hiring an expert loan processor who works around the clock extracting data points from tax returns and financials and allowing the credit team to focus on the underwriting insights and accurate loan decisions. More banks and credit unions are implementing mobile apps, statement spreading technology (such as MonJa Smart Scan), and automated underwriting software, allowing the growth of loan origination volumes with less staff involved in loan processing.
MonJa’s automated loan underwriting products that include various customization options can help your credit team incorporate Fintech programming to allow you to explore new loan sourcing options and bring all the benefits of the additional workstream.
The Breadth of New Business Available
You might be wondering how can Fintech help to increase revenue flow and make commercial loans more profitable. The adage that time is money really is true. Tools like automated underwriting and statement spreading allow your team to process loans of any size and complexity in much less time and at less cost.
There are roughly 29 million small businesses in the United States with lending around $700 billion. Community banks and credit unions traditionally serviced these smaller companies. The advent of the internet of things (IoT) and increased consumer desire for immediate gratification have led to advances in banking. Some areas of opportunity are:
- Small business remodel loans
- Equipment for manufacturing and farming
- Seasonal inventory increases
Automation is key to reduce the amount of manual work required for accurate underwriting. You can collect applications via mobile apps to make it easy for busy small business owners to get loan processing started. You can also compete with the big banks by offering quicker decisions without the big-bank budget. MonJa’s statement spreading tool is affordable even for small-size lending institutions with it’s pay on demand cost structure and no upfront implementation fee. You can find out more about our pricing by booking the demo here: https://calendly.com/james-wu-1/demo/
The Fintech mechanization allows you to offer low-end loans with little overhead in processing, which increases cash flow for your institution. Funding new equipment, a loan for expansion or a new storage facility helps the community prosper, too.
Improve Your Credit Team’s Structure
When the ideas of artificial intelligence (AI) and machine learning first originated, people feared they would displace humans in the workplace. That may be true to some extent in production, but in the financial field, it gives teams a powerful weapon to increase the revenue stream.
The time formerly spent on manual processing from origination to results – including data entry, financial ratios calculations, application of risk factors and adherence to implemented guidelines – is removed. Only the more complicated loans are flagged for review. Your organization makes the determination and can adjust flag parameters.
Your loan officers and staff are then free to fill customer-forward roles, improving service and, in turn, bank loyalty. The automated system makes decisions based on risk parameters defined by you and the legal requirements. The majority of the processing is done electronically for normal loans, including paper applications.
This can also improve team morale. Let’s face it: If your credit team is able to automate more of the daily workload and spend more time working complex cases or exploring new loan origination opportunities, there should be some stress relief. The time spent with customers then becomes more about excellent service and less about gathering information and performing manual data extraction which is so time-consuming.
Start Improving Your Underwriting Process Today
MonJa’s automated loan underwriting system and Smart Scan Technology is a powerful Fintech platform for your institution. Processing time improvements and reduced loan handling improve profitability. You can see results quickly with these key benefits:
- Streamlined data entry. Smart Scan Technology takes forms, handwritten information, tax returns, and identification documents and extracts them into readable data. The information is processed, and the end results are the financial ratios needed from the data. Your team can save hours of data extraction and entry and avoid making errors.
- Sound funding decisions. The automated process eliminates prejudice by following the parameters set within the platform. A “gut” feeling is replaced by proven AI algorithms that compare each borrower against loan results.
- Reduced processing time. Tedious tasks associated with the manual paper collection, statement spreading, and overall loan application processing can be reduced by 70%. The stack of paper applications can be easily transformed into Excel sheets and a credit memo draft in less than 24 hours of time. All that it takes is to upload tax returns and other financials (PDF files) to MonJa’s portal which requires minutes for a credit analyst.
- Faster loan decisions. Loan results are produced 42% quicker using automation. This gives smaller facilities a competitive edge and improves institution reputation. Savvy business owners who shop for the best rates or need immediate cashflow can stay local instead of going national.
- Improved branding. The sleek mobile loan app and underwriting portal from MonJa are white-label solutions. Your logo, messaging and images are used to mirror your current marketing and brand image without the hassle and cost of creating an app from scratch.
The pay-as-you-go pricing structure lets you start handling loan origination from new borrowers without any up-front expenditures. Return on investment with the new Fintech software is also fast due to its pricing structure and improved method.
Request MonJa's Statement Spreading Software Demo
MonJa Smart Scan Technology speeds up commercial loan underwriting by up to 70%.