The transformation to a digital means of loan acquisition and processing is crucial for organizational goals. You don’t need us to bombard you with stats to prove that digitizing and automating makes work easier for you. You have a computer and a mobile phone reminding you every day how indispensable technology is to your life and career.
But when it comes to your business and investing in lending software, you need to have well-defined goals and a way to measure the ROI of your mortgage technology.
This article will help you define the factors you can use to measure your lending software’s success and justify investing in digital mortgage transformation –if you haven’t already.
Define Your Objective and Primary Motivation for Employing Lending Software
Time to get brutally honest with yourself –what do you hope to achieve with lending software? Boil it down to the most basic objective and focus on one to three of those (max) at a time.
Here are some of the most common objectives we hear from originators:
- Reduce cost per application
- Increase approval rates
- Increase processing capacity
- More accurate decision making
- Increase team engagement and virtual collaboration
- Improve customer satisfaction
- Boost operational efficiency
After identifying your objective(s), explore all the reasons why reaching this goal is essential for your business. Will reducing incomplete applications free up resources? Will more accurate decision-making translate to faster closings? Will increasing team engagement spill over to improved employee satisfaction and retention?
Why do any of those above reasons matter anyway?
This is where defining your motivation comes in. When you clarify your motivation for implementing lending software, it makes your goals attainable and gives you the answers you’ll need in developing your strategy.
Define and Analyze the Metrics that Align with Your Primary Motivation
Now that you have defined your objectives and a primary motivation for using lending software, the next step is to establish what success looks like and how you can track achieving it.
For example, if your goal is to boost operational efficiency, you may want to look at how many “touches” you give per loan. A touch could be manually inputting data, requesting documentation, requesting an update from the underwriter, or reiterating information to the borrower and their agent. Measurement of success in this example would be the elimination or reduction of those “touches.”
If your objective is to increase the loan approval rate by 10%, you’ll want to reduce the time spent on unqualified loan applicants by identifying them sooner. Streamlining and automating document gathering would be the primary way to do this.
Here’s how you might breakdown that latter example:
Objective – Increase loan approval rate by 10%
Strategy – Identify unqualified borrowers at an earlier stage.
Method – Hasten document gathering with automation, thus, accelerating decision making.
Measure – Note changes in the number of loans approved
Analyze and Review – If goals aren’t met by the established timeline, investigate possible reasons why that might be and adjust strategy as needed.
Troubleshoot Obstacles and Refine Your Strategy
While it’s a positive force, progress can be challenging, so be prepared to work out the kinks and shift your strategy during the process. Remember that even a faster and more efficient way to work has a learning curve.
Frequently review your objectives, motivation, and, of course –your metrics! As the saying goes: what get’s measured, gets improved. Understand your baseline, outline your strategy and method, and start measuring your loan software ROI from day one.
You also want to sure that your chosen loan software is aligned with the rest of your business model. Integrations should be deep and flexible for a seamless workflow with the rest of your loan servicers, and customer experience should be unified.
Refer to this article to understand the importance of omnichannel borrower engagement and the lending experience)
Loan Software That Elevates, Not Just Eliminates
It can sometimes feel like you’re alone in grappling with the questions and obstacles of a digital transformation, even when technology is “your thing.” Whether you’re a single broker or multi-branch enterprise, we understand the struggles of this sort of undertaking.
Loanzify POS is the lending software that puts meaningful digital transformation within your grasp –right “out of the box!” All of those objectives we mentioned above are addressed, and, in fact, are typically instantly resolved simply by employing Loanzify POS.
From the mobile-optimized interview-style intake with Milestone Tracker to the automated credit pull with borrower self-pay, Loanzify POS unifies your loan origination ecosystem for maximum efficiency and profitability.
Along with designing the industry’s most intuitive and robust mortgage software, we also created an outstanding customer success initiative to intelligently support lenders of all sizes and stages of technology implementation.
From loan software to customer support, your ultimate success is in our DNA.