Bank Installs New Loan Servicing Software and Saves $17,000 On The First Day!
A large California bank installed LOANLEDGER, a PC-based loan management system that standardized its loan portfolio. The first day, the lending manager discovered the bank's previous system had been undercharging interest on a commercial loan. Correcting the error saved the institution $17,000!
Later that week, they found that a branch was not adjusting consumer adjustable rate mortgages in a timely manner. Also, it unearthed a full floating loan that was not readjusting promptly to reference rate movements. The loan, six months old, was recalculated producing additional income of $6,000.
In five working days, the new system had recovered over $25,000 for the bank... not a bad week's work!
What's Your Current Loan Servicing Software Really Costing You?
How many "holes" like this exist in your outdated loan servicing system? What will they cost you this year? What impact will inadequate loan portfolio performance have on your organization and your personal objectives?
What about your current system?
Does it prevent the kinds of mistakes that cost your organization hundreds, maybe thousands of dollars on a single account? How many accounts do you have?
Does your system have updated capabilities that keep your people interested, enthused about their work? How many people on the firing line have left you in the past year? What role did a more creative environment or better systems play in their decision to leave?
What price are you personally paying in responding to shareholder concerns about loan delinquencies and statutory reporting requirements?
The Loan Servicing Software Solution
Like other presidents, you may already know that your loan management system is the only control you have over delinquencies and defaults. You may also have considered upgrading your current mini or mainframe system, and balked at the cost of software enhancements. As president, you can't simply sit by and watch your loan portfolio erode because you lack the software sophistication to improve portfolio performance. Lenders that have made the conversion will tell you the solution is a PC-based system that stands alone or interfaces with your mainframe. But the most critical element is the software driving the PC!
LOANLEDGER is a sophisticated, PC-based loan servicing software system that puts you in control of your loan portfolio. It red flags delinquent loans and first payment defaults before you lose irretrievable income. It "foolproofs" your customer-contact people, and has all the bells and whistles they have been begging their supervisors for. LOANLEDGER reacts promptly to interest rate shifts, and gives you a complete and accurate overview of your entire loan portfolio - when you need it. LOANLEDGER puts you in control of your loan portfolio, of your board and shareholder-related responsibilities, and of those pesky regulations.
Getting the Right Loan Servicing Software
Given the potential for loss, the decision to upgrade your software is inevitable. Had you acted at the start of the year, you likely would have recovered more than the upgrade investment by now. When you do act, make certain you choose a software manufacturer with strong phone support, and that it is available when you will be needing it. Check for a company with a history of updating their software. Ask about the frequency and extent of upgrades and new releases.
Make certain the software will solve the problems caused by your loan delinquencies. Ask your supervisors what features are most important to your collection people. Can it be integrated with the current controls you want to keep? Can it be upgraded? Is it modular so it can expand to accommodate new loan products? Can it generate audit trails and agings, detailed customer histories, transaction reports, past due notices at specified intervals and account ledgers? Does it have credit bureau capabilities? Can remote offices access your data? Can it even dial the phones for you?
The more questions you ask, the more demanding you are, the better we look.
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