Commercial loan underwriter software has helped lenders in many ways. However, the foremost benefit of using the software is the elimination of paperwork or quite fewer uses of paper. This has saved huge time, effort, and money for the financial institutes. Therefore, cutting paper out of the business has resulted in a positive outcome.
However, how sure are we that software has reduced the paperwork completely or to a great extent? To learn about the truth, we need to walk through a few facts that will help you with a better answer.
The Security Concern
When the sensitive information is in a hardcopy, then the risk of losing or burglary is greater. This has happened in the reality that financial institutes have lost borrowers’ personal information stored in the form of paper. This results in the increase in turnover of potential clients of the banks. The introduction of loan decisioning software has helped lenders to keep the vital information in a more secure way. That’s the use of software has reduced the use of paperwork.
Paper is an Expensive Option
The average use of sheets is 15000 in the United States per employee. Now you can guess the use of sheets by every office employee. It is in millions. Plus, the paper requires additional storage costs that boost the overall expense on the firm. When talking about loan documents, there is no security as paper documents cannot be misplaced or misused. It is easy to break off the personal details of the borrowers. This turns out to be an expensive option for the financial institution.
Improved Employee Productivity
Today’s businesses are surviving with the help of technology and human resources. Every business needs high productivity, which is indeed done by the employees. But employees need good working conditions that lead to high output. Again the modern loan origination system has helped employees to work faster & accurately. Moreover, every employee works in harmony.
Reduce Costs and Increase ROI
As discussed above, paperwork has ended up a high cost to the business. So, the business wants something reliable & cost-effective. Advanced software & tools are a rescue to the major issue. Similarly, loan origination software has reduced the cost of paperwork. Plus, establishing a way to increase ROI by coming up with the features which the lenders need all the time when processing loans.
Data Security
There is no doubt that digital information is more secure than printed ones. Lenders using digital files work under high security. It’s pretty hard to hack the security frames for accessing the borrowers’ information. This was convenient to do when the loan underwriting procedure worked on the traditional grounds. In other words, when everything was based on paperwork.
Accessibility
Another concern with the paper documents was that they were hard to find when needed immediately. The software allows you to access the information anytime. All you need to have is the credentials, internet, and device.
Final Touch
The above facts show the importance of software over the paper. Therefore, it can be concluded that loan origination software has eliminated the work of a paper to a great extent in the 21st century.
