A loan management system is a digital platform that helps automate every stage of the loan lifecycle, from application to closing. The traditional loan management process is meticulous, time-consuming, and requires collecting and verifying information about applicants, their trustworthiness, and their credibility. Further, the process involves calculating interest rates and supervising payments. A loan servicing software not only automates these procedures but also provides useful analytics and insights for lenders and borrowers.

The process of loan assignment, calculation, and management is quite complex. As such, errors may occur at every stage: from wrongly accessing the credibility of a company or individual, to calculation and reporting. Moreover, the entire loan process involves the work of several employees and consumes a lot of effort. Failure to comply with numerous regulations not only leads to fines and restrictions but also has a negative impact on the company’s reputation. On top of that, the traditional lending process is deemed boring and tiresome by younger clients. As such, millennials are more attracted to companies willing to offer digital-only experiences.