Taking Another Look at Implementing e-lending Technology
By Andrew Krieger, Encomia
When bank CIOs think about technology implementation, it is likely that they assume it involves a long and complicated process. They remember implementing a blended contact center or a mobile payment system-projects that took as long as 18 months for development and rollout.It is no surprise that as electronic lending, or "e-lending," gains popularity on Capitol Hill and in the banking arena, CIOs and IT departments might begin to get nervous, anticipating a lengthy implementation process ahead. Fortunately, implementation is much easier than most would imagine because of: • Easy integration with existing core systems, • Tested and deployed functionality, and • Similarity to processes involving physical loan documents.
E-lending technology is easy to implement primarily because of its compatibility with the core systems that banks already have in place. As a result, e-lending systems can be dropped in place to seamlessly work with your most important banking systems, such as:
Platform Systems: e-lending technology easily integrates with existing platform systems to create electronic loan documents that dramatically improve workflow. Both systems seamlessly work together to create e-documents by simply redirecting what was once a print job that yielded cumbersome paper documents to a job that seamlessly creates electronic loan documents that appeal to secondary market investors while reducing shipping and storage costs.
Web Banking: e-lending technology is compatible with existing online banking systems that are already outfitted with rich security features. Web banking systems work with e-lending technology to securely present loan documents online for borrower signatures-without requiring the construction of a new customer-facing system.
Imaging Systems: e-lending technology integrates with imaging systems to index and securely store electronic documents as part of your enterprise content management system.
Enterprise Reporting Systems: e-lending technology integrates with enterprise reporting systems to give loan officers and staff the real time status of loan documents-indicating whether or not they have been viewed and/or signed by borrowers. It can also provide management reporting about loan production levels.
The lessons learned from currently installed e-lending platforms are another reason for its easy implementation. Because the concept of electronic lending has been around for years and is deployed in various configurations at top and mid-tier banks, the technology that facilitates the electronic lending process has been deployed and tested in production environments. A number of institutions currently utilize such technology in their residential and consumer lending departments. E-lending technology's existing deployments should also make the build versus buy question much easier to answer. Banks that utilize third party e-lending technology will get results from faster implementations than custom software and built-in best practices.
Because electronic lending processes are almost identical to those associated with handling paper documents, learning how to use e-lending technology is intuitive. Your staff will employ the same systems they have been using to open loan accounts, except the loan documents are online. This improves efficiency by enabling electronic presentation and signing, and allows customer service agents to assist remote borrowers in real time.
E-lending technology's easy integration with existing core systems, its tested functionality and ease of use makes it a product that is simple to implement for CIOs and IT departments. In some of the largest banks in the country, implementation was completed in as little as four months, while small and midsize institutions have experienced even quicker implementation.
Andrew Krieger is COO of Houston-based electronic lending software provider Encomia.