All About Loan Management Software

It’s no secret that the world we live in is evolving and becoming digital. Increasingly, more and more tasks are being conducted online. Businesses use the cloud to enable their employees to move tasks forward and access and edit key documents even during their commute. Everything from watching a new movie, getting tickets to a sporting event, purchasing a birthday present, or getting a quick answer to virtually any question on your mind is done online via computer or phone at the tap of a screen or the click of a few buttons. The way the world seeks entertainment, and even services and solutions, is evolving at a very rapid pace. With this shift, people have grown to expect instant accessibility to solutions and the ability to perform any task they want quickly and from anywhere they are in the world.

As this shift has taken place, it has become even more critical for lenders to evolve and improve their processes. From the way lenders originate loans, through the entirety of the lending process, the consumer’s demand for ease and convenience has never been greater. Already, 61% of loan statements are delivered electronically. Millennials, in particular, want to perform financial tasks quickly, and as the older generations begin to age, the pressure on lenders to continually improve their offering and simplify their processes has intensified. It’s becoming increasingly important for lenders to learn about and implement new mortgage and general loan lending solutions, including loan servicing software and loan origination software, to manage the changing desires and needs of the new consumer. In this article, we will address two major questions that will help lenders move toward better serving their clients. We will also highlight some key ways Salesforce Financial Services Cloud can help. The topics we will focus on in this article are:

  • Why do you need loan management software?
  • What should you look for in loan management software?
  • How can Financial Services Cloud help you with loan management?

Why do lenders need loan management or loan servicing software?

In addition to providing a quick and easily accessible way to obtain a loan, lenders need loan management software for a number of other reasons. Some of the reasons lenders need loan servicing software are:

  • Loan servicing software boosts customer satisfaction
  • Loan servicing software improves organization
  • Loan servicing software mitigates errors
  • Loan servicing software caters to a new generation

Loan servicing software boosts customer satisfaction.

As has been mentioned, it’s clear to see that consumers are moving more and more toward quick-and-easy online solutions for just about everything. In order to keep them satisfied, lenders must actively seek new finance systems and solutions that improve the lending process. Across all industries, keeping customers satisfied has proven paramount to retaining them. And it certainly holds true for the financial industry. Not surprisingly, a study by J.D. Power found that ensuring customer satisfaction is vital for finance providers when it comes to customer retention; the study found that over 90% of highly satisfied customers said they “definitely will” use their current lender in the future. Loan servicing software boosts customer satisfaction by providing an easy and streamlined solution to the often long and arduous loan acquisition process.

Loan servicing software improves organization.

Disorganization is bad for any enterprise, but particularly for banks and financial institutions. When people’s money and personal information is involved, staying impeccably organized is an absolute necessity. Without loan servicing software, the risk of disorganization through human involvement enters the equation. The importance of retaining organized loan officers to handle any questions and move the process forward, however, should not be diminished. In fact, an Accenture survey of over 30,000 consumers across 18 countries discovered that 66% of people still crave human interaction in financial services, particularly on complex issues like mortgages. In that area, 61% desired personal advice. Implementing robust loan management software will enhance human interaction by shouldering the burden of improved organization and keeping personal information more safe and secure. This enables more meaningful personal interactions to take place, as loan officers are afforded the bandwidth to resolve clients’ personal concerns rather than focus energy on organizing collections of documents.

Loan servicing software mitigates errors.

Loan servicing software does more than just keep information and funds organized; it also helps eliminate errors. Staying error-free is key to satisfaction. The afore referenced study by J.D. Power also uncovered that payment and billing errors are among the most determining key performance indicators when it comes to consumer satisfaction. Loan origination software and loan servicing software collect and store data neatly and securely, mitigating errors and thus improving overall customer satisfaction.

Loan servicing software caters to a new generation.

Millennials turn to lenders for student loans, and in the future many will be seeking mortgage loans. As financial institutions face this reality, it’s critical that they understand the needs and desires of this rising demographic. Millennials seek convenience and ease of use. Citing these reasons in a recent survey on connected banking, interestingly 55% of millennials said they prefer fintech firms for basic payments over using similar services provided by their bank.

Beyond just basic payments, millennials will want a painless and easy way to acquire loans. They’ll want to obtain loans online, and research is showing this to be the case. A study by ACI Worldwide found that if you’re a financial institution, by 2019 it’s expected that customers will pay 57% of loans on your website. The best way to ensure a positive loan buying experience on your website is to implement loan software as one of your key lending solutions.

What should lenders look for in a loan management software?

Understanding the need for loan management software is the first step, but finding the right loan management solution is what really matters. Here’s what lenders should look for in loan management software:

  • Customizability
  • Accuracy and ability to collect the right information quickly
  • A solution that enhances understanding of clients’ needs


No two lenders or their clients are exactly the same. As such, you need a solution that is customized to your unique needs. Look for a detailed loan servicing software partner that understands your pain points and those of your customers and enables you to create a customized solution to the specific problems you’re facing. Seek a solution that facilitates quick problem solving through relevant and personal user experiences and relationships.

Accuracy and ability to collect the right information quickly

Find a loan management software solution that is not only accurate, but also targeted in its approach to gathering customer information. Accurately gathering basic personal information such as credit history, job history, and income is important. However, if you wish to truly satisfy and retain customers, “gathering information” should refer to more than simply personal information; the definition expands to include key consumer touchpoints, tendencies, processes, and pain points.

With accurate information about customer journeys and problem areas, you can deliver the individualized solutions that will best serve their needs. With a loan management solution that goes above and beyond to provide a rich understanding of each customer, the way to improve processes becomes clear, and processing loans becomes a more streamlined procedure.

A solution that provides a complete customer view

Collecting the right information is critical, but it’s not very helpful unless it’s organized and holistic. Look for a solution that provides a total and complete view of each individual customer. Rather than viewing individual events pertaining to a customer’s history in isolation, a robust solution will provide the ability to see the full customer picture. Say goodbye to generalizations, and look for an offering that will give you unparalleled specifics into each individual customer.

How can Financial Services Cloud help you with loan management?

Financial Services Cloud is a robust and multifaceted product offering that includes solutions not only for loan management, but also for insurance, wealth management, and commercial banking. Whether you’re looking for the best loan origination software or wanting to more deeply understand loan servicing, Salesforce has solutions and software packages that can be tailored to your needs. The Trailhead learning platform contains financial and banking modules and projects that will help you understand the financial landscape and learn how to react to new trends.

Salesforce is excited to help you streamline digital lending and walk you through the process of implementing the best solution for your specific situation, including apps for origination finance or other specific use cases. A Salesforce representatives can introduce you to the specific capabilities of our platform and also show you how other companies and financial institutions have found success through the solutions found under Financial Services Cloud.