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Negotiating with loan origination system (LOS) vendors is a lengthy process for companies looking to streamline their lending operations. However, akin to selecting a car, identifying incompatible vendors becomes significantly easier when armed with the right knowledge.

Initial SAAS Filtering Criteria

The landscape of loan origination systems is vast, with most failing to meet the basic Software-as-a-Service (SaaS) requirements of lenders. Before delving into specific questions about loan origination solutions, it’s crucial to establish general quality assurance criteria for any core technology selection:

Pricing Structure: In the realm of finance, scrutinize vendors for additional charges based on user count, portfolio growth, hidden fees, and contract length.

Cybersecurity: Beyond a flashy user interface, prioritize robust cybersecurity to ensure the safety of sensitive data.

Regular Updates: SaaS solutions must undergo regular updates to stay aligned with industry trends and maintain interoperability with evolving technology.

Support & Training: A reliable LOS vendor should offer efficient training and swift tech support to establish credibility as a financial services provider.

Track Record: Seek direct references and success stories to gauge how LOS vendors treat their customers.

While these criteria are crucial, navigating the waters of loan origination software requires additional considerations.

Loan Origination Software Selection Must-Haves

  1. Loan Application Flow Configurability: Opt for a system that allows dynamic adjustments to the loan application process, adapting to market changes swiftly.
  2. Real-Time Application Processing: Automation of scoring and decision-making processes in real-time enhances borrower satisfaction and competitiveness in the market.
  3. Scalability: Ensure the chosen LOS can handle growing portfolios without hindering operational efficiency, exemplified by Vergent LMS’s success in serving millions of borrowers globally.
  4. Innovative Credit Product Development: Select a system that fosters innovation by enabling rapid creation and launch of new, fully automated credit products.
  5. Credit Scoring Accuracy and Flexibility: Leverage AI-driven Decision Engines to enhance credit scoring accuracy, allowing for better loan decisions and wider audience reach.
  6. Keeping Up with Industry and Regulation: Choose a vendor committed to regular platform updates to stay abreast of industry trends and regulatory changes.
  7. Supporting Digital Credit Beyond Loan Origination: Opt for an end-to-end lending automation infrastructure that covers all aspects of consumer and commercial credit, promoting a seamless borrower experience.
  8. Reliable Uptime: Prioritize vendors with a track record of reliable uptime to minimize financial impacts associated with downtime.
  9. Borrower’s Self-Management Capacity: Enhance borrower experience with an intuitive user interface and clear communication, enabling self-management through personalized online portals.
  10. Time-to-Market for Initial Release and Updates: Speed is crucial; choose a provider with pre-configured solutions for faster time-to-market, such as Vergent LMS’s three-to-five times faster implementation.

In conclusion, companies need to be thorough in their evaluation process, ensuring that the selected LOS aligns with their specific operational needs and supports growth in the dynamic landscape of lending.

Navigate the loan origination system (LOS) vendor landscape with ease. Learn essential criteria for selecting the right LOS, from pricing to cybersecurity. Ensure scalability, real-time processing, and innovation for a seamless lending experience. Make informed decisions with our comprehensive guide.