Software as a Service, or SaaS, is a cloud-based software delivery model that enables users to access software services through the Internet. This new generation of software services has become so popular that even lending companies use it.
SaaS platforms have been offering a lot of positive impacts that change how lending companies operate and deal with their clients. That said, lenders who still aren’t using SaaS for their operation must consider transitioning to experience the positive changes this technology has to offer, such as:
Automates Onboarding Process
A SaaS-based loan management system has impacted the lending industry by automating new consumer’s onboarding process. Applying for any type of loan can be a tiring process for everyone. But with the automated onboarding process that SaaS-based loan management system offers, lending companies can streamline their customer’s onboarding by using pre-fill form fields, automated verification processes, etc.
This automated approach in onboarding clients helps provide a unified customer experience that will make their onboarding smooth and convenient. If lending companies start using SaaS-based loan management software for their lending business, their customers will surely stay and continue subscribing to their services.
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Customized Lending Products
If lenders decide to use a SaaS platform for their lending company, they can begin offering personalized lending products to their customers. By promptly providing more personalized loan products to their clients, they can give more value to their consumers.
With the customized lending products, loan consumers will feel more valued by the lending company, increasing their trust in their services. A SaaS-based loan management system can create a personalized loan product according to each customer’s credit score, income, financial history, and assets.
These data will then be used to craft the most suitable loan product to cater to the customer’s needs, capabilities, and limitations. That said, using a SaaS-based platform will decrease the chances of offering the wrong loan product to a customer that they’ll have difficulty repaying.
Improve Lender-Customer Relationship
Aside from providing customers with personalized loan products to help them acquire additional cash according to their unique circumstances, SaaS-based platforms can also help enhance lender-customer relationships.
With the Saas-based platform’s help, lenders can go beyond just offering loan services to their customers. It can also help design an enriched consumer experience. Since a SaaS-based loan management system helps provide customized loan products to clients that make them feel valued, it will help establish good relationships.
Customers will feel more secure and confident in doing business with a specific lender because they see how they are valued by ensuring they won’t have difficulty fulfilling their loan obligations.
Aside from providing customers with a personalized loan, lenders can also provide expert advice and support to clients to help them learn financial literacy. That said, lenders can’t only help provide their clients with the ideal loan for their situations but also help them learn. As a result, lenders will build trust and long-term good relationships.
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Offers Fast Maintenance
One of the benefits SaaS platforms offer their customers is fast and low-cost maintenance. That said, lending companies don’t have to worry about the long periods and costly maintenance that can disrupt their daily operations.
As a result, lenders can continuously provide amazing services to their consumers. Loan providers must keep in mind that they must focus their time, money, and effort on their core products and services and not on maintaining software.
Fortunately, a SaaS-based loan management system is faster and more economical than on-premise software solutions. An “on-premise” software is a type of software that is installed physically on the lender’s in-house, in contrast with the cloud-based operation of SaaS platforms.
Suppose lenders are using on-premise software in operating their lending businesses. In that case, the maintenance, such as the upgrade of the functionalities and UX development, will depend on how the company’s IT team can work on them. The maintenance will still be based on how humans are prone to errors.
The only benefit of this scenario is that lenders will have full control over the direction of the updates. Meanwhile, an entire company works 24/7 behind every SaaS platform to provide their software with new updates and innovations for better operation. However, some SaaS platforms adjust to their client’s requirements when updating.
The biggest advantage of using a SaaS platform over on-premise software is that SaaS companies can promptly provide lenders with the best software updates that even the best IT team can’t finish instantly. As a result, lending companies won’t need to stop operations to make way for maintenance.
Lower Expenses
SaaS platforms can be easily installed online through the Internet. This means lenders won’t need to pay extensive installments of software as they would with on-premise software. Aside from saving from installation costs, most SaaS platforms are offered in subscription terms. Therefore, choosing SaaS over on-premise software is cheaper to implement.
Additionally, updates on SaaS platforms are done automatically and won’t require lending companies to pay an IT team to do the updates. Even though Information Technology didn’t belong to the list of jobs that pay 100k a year without a degree, hiring a team of experts is still expensive.
When using a SaaS platform for their business, lenders might only pay when they upgrade their subscriptions to add more functionalities to their process. They can cut down on their IT budget by removing the cost of IT resources, upfront costs, configuration, maintenance costs, and implementation requirements.
As a result, the savings they can get can be added to their savings and profit, or they can even spend it to expand their business.
That’s why lending companies who are still using on-premise software must consider using the SaaS platform for their operation to reduce operating costs and instead focus the financial effort towards increasing productivity and growth of the company.
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Conclusion
SaaS-based loan management systems created a positive impact on the lending industry. With this innovative solution, loan consumers will have a good experience acquiring loan products from their favorite lenders. On the other hand, lenders can also improve their services to retain and gain new customers.
