Lending software is an excellent way to help your organization upgrade its technology and eliminate the need for paper documents. However, it can also be a challenge to introduce new technologies into your institution.
Lending software comes with a steep learning curve and a hefty price tag, which can deter some institutions from changing. But lenders don’t have to jump right into adopting lending software; there are plenty of steps they can take first that will help make their transition as seamless as possible.
This post will go over five common challenges faced by entities considering going paperless with lending software and how enterprise content management challenges can be overcome so you can ditch those pesky binders!
Challenges of Lending Software Adoption
Adopting lending software has helped many lenders reduce costs, improve their customer experience, and improve compliance. The challenges of adopting lending software center around the difficulties involved in transitioning from paper-based operations to digital ones.
Lending Software is Seen as Costly
Lending software can be expensive, but there are ways to reduce costs. First, you’ll need to determine what your budget is for the software and what features it should have. Is there a one-time cost or monthly fee? Do you need all of the bells and whistles or just some basic functionality?
Once you’ve determined this information, contact several vendors for pricing quotes. Some companies may offer special deals if you’re purchasing in bulk or committing to an annual contract; other vendors will offer free trials so that you can test out their product before purchasing it outright.
Lending Software is Seen as Too Complex to Learn and Implement
A borrower may need to wait several years or even months. Lender or third-party agent to learn how to use and implement a new system in their daily operations.
This challenge has been around for decades, but one thing that has changed is the evolution of technology, specifically artificial intelligence (AI). Many people don’t realize that AI is behind much of the modern lending process these days.
Your Employees are Resistant to Change
Change is hard. But it’s also necessary, and you can’t make change happen without your employees. So how do you get them on board, so they are comfortable with the change, see the benefits of it, and feel respected by their leaders?
Here’s what’s in it for them: they will be able to grow as individuals and professionals. This means taking on new challenges, learning new skills, and having more impact on their jobs. Your employees may even find themselves getting promoted!
Lending Software Requires IT/IS Support
To implement a lending software solution successfully, your company needs IT/IS support for the following reasons.
- Install the software and configure it for use.
- Train staff on how to use the software.
- Fix any problems that may appear while the system is being implemented and used over time.
Lending Software Will Allow Your Institution to Go Paperless
If a paperless process is important to you, lending software will be able to help. The software can manage your lending process and ensure that your borrowers receive their payments on time.
It will also keep track of how many times each borrower has been late on their payments so that if they slip up again in the future, all you have to do is look at the software instead of digging through files for information.
The lending software market is growing and will continue to grow in the coming years. The benefits of using enterprise content management technology are clear, but many financial institutions still struggle with getting started. We hope this blog post helped you understand some common challenges that are holding back adoption and how enterprise lending software can help overcome them.