The four challenges all fintech lenders face

All lenders face challenges when it comes to their core banking system. They might understand the tech, but there are still several factors that make choosing or managing a modern, cloud-based core banking system difficult. Here, we’ve outlined some of those challenges, and some of the steps you can take to alleviate them.

All lenders face challenges when it comes to their core banking system. Although understanding the tech side of things might not be one of those challenges, there are a number of factors that nevertheless make choosing or managing a modern, cloud-based core banking system difficult. 

Here, we’ve outlined some of those challenges, and some of the steps you can take to alleviate them. 

1. Resource bottlenecks 

Ultimately, you need to direct most of your time and money towards improving your core service, reaching new customers, and delivering to existing ones. 

But if, as you grow, your core banking system is increasingly unable keep up with the demands placed upon it even if it’s operating at full tilt – i.e., facing a resource bottleneck – you’re going to have to divert some of that time and money towards expanding server capacity. 

A modern, cloud-based core banking eliminates resource bottlenecks by giving you the breathing space to focus on your business while your provider handles the technical side of your core banking system. Oradian’s system is hosted on the cloud, so it’s infinitely scalable, and will grow as your business does.  

2. A lack of expertise 

Many core banking systems require on-premise server infrastructure to keep it running. This, in turn, demands a team of in-house developers and engineers to maintain security standards, develop new features and ensure the server is functioning. 

Consequently, you need to compete with other financial institutions to recruit from a limited pool of engineers to maintain your servers, or developers to test and launch new features. If you can’t recruit the right people, you’ll struggle with a lack of expertise, and your core banking system will fall behind your competitors as new features go undeveloped and your server infrastructure becomes increasingly inadequate at coping with an expanding workload. 

Because Oradian has its own team of in-house experts, you will never be held back by a lack of internal expertise.  

Better still, this means you will receive regular updates – including new security protocols and new functions – developed and tested by our own team as soon as they’re released, and for no additional cost. 

Furthermore, we’ll be with you all the way during the implementation process, helping you seamlessly integrate your new core banking system with your financial institution, rather than leaving it up to your own team. 

3. Slow loan turnaround time 

Your reputation as a lender and your ability to compete with your rivals depends on an extremely rapid turnaround. 

The advantage of a cloud-based core banking system is that you can automate much of the loan workflow, from credit scoring to disbursement. This can make processing applications and disbursing loans much quicker and more efficient, going from days or hours to mere minutes. 

As a result, you’ll be able to manage more loans at a fraction of the time.  

4. Lack of interoperability 

A truly innovative core banking system won’t be limited by its internal architecture. You want something that can seamlessly integrate with any third-party program, whether it’s one you currently use or one you might choose to adopt in the future. 

Search for a core banking system with an evolutionary API-based approach. For instance, Oradian uses REST APIs, giving it total interoperability with third-party platforms, whether that’s a messaging system or an accounting service. 

Oradian’s API-first approach is even designed to allow you to connect to applications, systems and services that are yet to be developed. Its core banking system effectively future proofs your business. 

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