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Cloud technology can allow lending organizations scalability so even the smallest credit union or community bank can benefit. Care must be taken to ensure that sensitive financial information remains the property of the lending institution. The solution involves access to expert financial cloud-based software, accessible via portal logins. This keeps customers and proprietary data safe while accessing the benefits of advanced technologies. One of the easiest ways to test this for your organization is with automated underwriting software solutions.
The danger of letting go of too much information
Cloud-based services and technology allow financial institutions of all sizes to offer consumers the latest advances in technologies. This makes community banks and credit unions competitive with rates and service offerings that match those of big-named conglomerates.
You may be leery about the safety of data that must be transferred to these online platform and software providers, and with good reason. If your organization relies solely on the cloud by transferring and storing data externally, you risk losing continuity of customer data if there is a loss or breach within the system.
Additional peril lies in how the service provider protects sensitive information while it is housed within these external servers. Rapidly changing laws and regulations governing personal financial data should also be considered. You need to keep diligent records and have access to information without fear of a system glitch.
Why the hybrid model is better for banks and credit unions
Using internal servers exclusively ensures regulation and compliance, but your institution loses the competitive advantage of cloud services. You can reap the cost benefits, including reducing capital expenditure and increase innovative products and services by employing a hybrid cloud model. You still use your internal servers and processes to protect data from cyber-criminal breeches, but gain the benefits of cloud services with a hybrid cloud model.
The IBM Institute for Business Value reported that financial institution use of cloud services in 2019 is near $100 billion and the cloud workload potential for top-ranked banks is estimated to double yearly. Implementing new technology swiftly and testing different services that use FinTech tools keeps your facilities competitive with larger organizations.
The key is to select a partner you can trust who understands the needs of your institution. You can start small by evaluating your organization’s current structure and identifying areas where digital upgrades can dramatically improve your service offerings.
A simple and powerful way to start
Community banks and credit unions are finding success by increasing loan processing rates with greater accuracy. Loans that were once considered unprofitable can be processed swiftly via hybrid cloud technology. Your facility can maintain control over data with a service that allows access via a portal instead of transferring information from your system to the cloud platform server.
MonJa offers Underwriting Automation and Smart Scan Technology that decreases overall loan processing time by 42%, getting sound loans approved quickly. The artificial intelligence model audits applications against test information to apply more accurate risk assessment grading with underwriting automation. Smart Scan Technology reduces manual time spent on data entry and decreases errors, freeing staff to interact with customers or service priority or high-demand borrowers.
Your organization can even expand into mobile app loan processing services that allow small business owners and consumers to apply via any handheld device. Hybrid cloud services allow your institution access to this service, which was once reserved for national banks and online lenders with large IT budgets.
Contact MonJa today and request a free demo to see how fast and easy it is to get started. The pay-as-you-go pricing structure and reasonable implementation cost make it accessible no matter the size of your financial institution. As your loan origination needs to increase, your cost and access scale as well, allowing continued organizational growth.
Request MonJa's Statement Spreading Software Demo
MonJa Smart Scan Technology speeds up commercial loan underwriting by up to 70%.