One of the most common challenges faced by digital lenders is having their growth limited by resource bottlenecks.
You will find bottlenecks across the lending workflow, from insufficient data capacity to unresponsive customer service. These limit your firm’s ability to quickly develop and deploy digital loan products, reach new clients, or swiftly disburse credit and collect payments. Ultimately, these bottlenecks can seriously limit your potential growth in the long-term.
However, for many digital lenders, the unwitting cause of their problems lies in their loan management system. But by choosing the right provider, firms can adopt a loan management system that eliminates barriers to growth rather than imposes them.
Stretching your limits.
Ultimately, removing bottlenecks allows lenders to direct their energies towards improving their core service, reaching new customers, and delivering to existing ones.
The ability to do so depends on the scalability of your core banking or loan management system. It needs to be able to keep up with the increasing pressure you place upon it as you on-board more clients or develop more products.
If, as your business grows, your loan management system is unable to keep up with the demands placed upon it, you will have to divert resources to expanding its capacity to scale, otherwise your growth will simply hit a ceiling.
The trick to eliminating this bottleneck is to find a way to overcome the limits imposed by your loan management system.
This might be by investing in additional capacity, but that can be prohibitively expensive and may also require hiring a team of engineers and developers to maintain your servers and systems.
A major bottleneck can also be imposed by your loan management system provider, who you may need to make changes and updates to the system on your behalf. A slow and unresponsive provider will disrupt your core business, preventing you from growing for long periods of time as they update your system.
Indeed, we’ve heard from many lenders who found that their provider was hindering their ability to launch new products, imposing a significant bottleneck upon their growth.
The right system for the job.
The solution, then, is a modern, natively-scalable loan management system that eliminates resource bottlenecks by giving you the breathing space to focus on your business while your provider handles the technical side.
A loan management system like Oradian’s is hosted on the cloud, giving it near-infinite scalability. Since it can grow as your business does – it has a flexible pricing plan designed exactly for this! – it almost totally eliminates capacity as a bottleneck to growth and saves your business from making a hefty capital investment in extra server space.
This, in turn, allows you to rapidly develop, test, and deploy new digital loan products using the cloud without worrying about downtime, business continuity, or the limits imposed by an inadequate system.
An effective system provider will also help remove the bottlenecks created by poor customer support or inadequate implementation. They will also provide frequent security updates and system maintenance, and deliver new features to keep the system running to its full potential.
Human capacity.
Effectively scaling up your lending business doesn’t just demand a flexible, extensible digital loan management system: it also requires a workforce with the capacity to quickly address new tasks and challenges as they arise.
Your loan management system should therefore also prevent bottlenecks from forming from overworked employees by making processes and workflows more efficient and less dependent on manual inputs.
It makes choosing the right system all the more important. A loan management system that doesn’t include, for instance, automatic disbursement will seriously undermine your employees’ performance, creating bottlenecks where individuals are wasting time manually processing transactions instead of focusing on the smooth operation of the core product.
No barriers to growth.
By choosing the right loan management system, digital lenders can not only improve their core business, but also remove the limits to their future potential growth.
A cloud-based loan management system like Oradian’s is designed for near-infinite scalability, meaning firms can continue on-boarding more clients, disbursing more credit, and developing new loan products without the hindrance of an inadequate core system.
In this way, they can avoid one of the biggest challenges facing digital lenders.
