Origination is often a scary word for many, for the fact that the pain points are many from enormous paper work, re-routed mails, lost documents, frequent re-submissions and endless waiting and negotiations. An expert study found that a regular member or loan application involved a staggering 200+ pages of documentation. This, coupled with the painstakingly slow pace of approvals, can be really frustrating. However, technology is changing that, making it more open and people-friendly. The game changers this decade will be digital origination solutions.
However, lenders have been concentrating on the initial loan origination process without going all-out digital. Focus is on speeding up documentation and empowering loan officers to make decisions. The compliance aspect is also looked after very well. Having just a streamlined loan origination process will not be of much help by itself, especially if customer experience is not taken into account. This is a huge opportunity for lenders to deliver an end-to-end digital experience to customers.
Online Loan origination solutions have been well accepted by lenders and today, the focus should be on delivering an empowering customer experience. Mortgage has already gone digital with customers comparing and contrasting mortgage solutions on the internet. Lenders should be able to augment this process by increasing the visibility of loan origination for the customer. This takes customer relationships to the next level with constant engagement and customer centricity.
Digitization does not mean that the entire origination process happens through a voice machine. Customers continue to rely on relationships with lending consultants. A digital space coupled with expert interaction with a loan officer is most likely to be the ideal system. With loan origination, many lenders have realized efficient work flows, streamlined operation, reduced costs in printing and storage and elimination of delays.