Tips for Commercial Loan Software Development

I am often asked by my clients and partners how to effectively implement a Commercial Loan Servicing software in a financial organization. Therefore, I decided to write this article and talk about the advantages of the loan servicing solution and outline the roadmap of its implementation.

It's quite an easy task to get a commercial loan today. Due to the development of FinTech, gone are the days when customers had to fill out loan applications on paper and get them to a banking branch over and over. The appearance of commercial lending software and digital lending transformation is smoothly and easily ending up brick-and-mortar commercial lending.

Commercial loan servicing software benefits

Before enumerating the benefits, it's necessary to define what a commercial lending system is. It is a software used for managing all loan operations, such as: 

• calculations

• credit reporting

• tracking

• fund processing

• risk management.

The benefits which commercial lenders get from using lending systems are the following:

1. Decision-making acceleration. Simplification of work, decision-making time reduction to seconds, customer attraction by work efficiency, and obtaining a significant competitive edge due to gathering all the information and functions in one tool – a commercial lending platform.

2. Improved prediction accuracy. Opportunity to reveal applicants with a high default probability and debtors who are more likely to pay back due to modern scoring solutions usage. Building an unlimited number of scoring models on the basis of your historical data and parameters with AI-driven solutions.

3. High flexibility and customization capability. Leveraging analytics and reporting, built-in scoring, calculation, CRM, multichannel, payment modules, onboarding, and security via a single commercial lending software solution. Modern commercial lending platforms are scalable and configurable around all business needs.

4. Maximized profitability. Reduction of time spent per application and automation of the entire commercial lending process, namely report and statistics creation, collection of historical data per customer, dashboard updating, document generation, and more.

5. Enhanced customer experience. Overall customer experience and customer onboarding improvement by offering the choice of communication channels, adding AI-powered chatbots, providing personal accounts, making a mobile-friendly website, and collecting user feedback to find out issues.

Commercial loan servicing software development roadmap

The basic process of developing loan servicing software should always keep the team and a client involved to earn greater profits. The stages of project development are usually as follows:

• Idea and strategy. At this stage, a client reaches out to the development company. The vision of the software solution, its budget expectation, and client's comments are negotiated, project goals are defined for further evolution of ideas into software.

• Project estimation and concept development. A team of business analysts, project managers, and developers with expertise in banking and finance create a project concept, make project estimation, identify requirements, set up team size, and prepare project roadmap.

• Development and design. This stage embraces the development of the future lending solution, namely backend, API, software, and its integration by using Agile and/or Scrum methodology.

• Testing. Validation of software quality through QA testing to find out and fix all bugs and issues and deliver a quality solution.

• Deployment, support, and maintenance. After launching the software, provide a client with the following support and maintenance to fix bugs, make updates, integrate the solution with third-party software, etc.

The mentioned above stages clearly show that commercial digital lending is a complex system. It's vital to find a reliable development team with technical expertise in the field of FinTech and lending whois capable of delivering a successful project. To create effective and efficient commercial lending software, a development company should follow the latest technologies and launch solutions with diverse deployment ecosystems.