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Top 5 Indirect Lending Mistakes to Avoid

Spring cleaning, most people don't enjoy it (unless you’re obsessive compulsive – not that there’s anything wrong with that), but it’s hard to not enjoy the benefits. Reduced clutter, more opportunity to utilize that free space and a tidier living area – these are the end goals.  Now is also the time to do some spring cleaning or evaluations regarding the efficiency and performance of your indirect lending program. Below, we have provided the five most common mistakes lenders make when operating their indirect lending programs:
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How to Find the Right Loan Origination System to Meet Your Indirect Lending Goals

Any financial institution that invests in its indirect lending program understands how difficult it can be to separate itself from the competition. Besides offering the best rates or dealer incentives, the most successful lenders are often the ones that provide the best service. This often means delivering fast and accurate decisions while dealers are trying to close a sale. That’s why it’s important for financial institutions to rely on loan software technology that pushes them forward rather than holding them back.  Here are a few best practices to consider when evaluating if a loan origination system is the right fit for your financial institution's goals and strategies:
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3 More Mobile and Digital Lending Best Practices to Help Survive the Madness

Have you filled out your bracket yet? If not, you better get on it soon since the big dance starts in just over an hour. It’s always interesting how so many people have unique strategies when deciding on the teams that will advance and eventually be crowned champions of college hoops. Some people have watched so many games this season that they can make educated decisions. While others, like me, find other less analytical ways to decide since they haven’t seen at least half of the teams actually play. Almost everyone knows or has heard a story of someone who won a pool because of picking something like their favorite mascots or colors. The point is that there is no single method or formula that leads to victory. While some people have won with crazy strategies, it’s best go with what works best for you. For digital lending success, it sort of like that – although the stakes are much higher. From the online or mobile application process to the decisoning, workflow and funding processes, financial institutions everywhere are still searching for the right strategy to survive and advance among today’s fierce competition. That’s why we’re here to help. This week’s blog post features three more of the most important best practices every financial institution needs to consider when evaluating technology and processes:
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How to Avoid Silo Analytics for Improved Credit Decisioning (Part 2)

Following last week’s blog post regarding silo analytics, we’re going to take it one step further this week.  As opposed to last week’s topic, which centered on using a single piece of (or incomplete) information to represent a holistic view of the consumer, silo analytics also refers to decentralized or fragmented process for analytics. In this example, each department within the same organization (such as marketing, credit risk, acquisitions and collections) often rebuilds its analytic infrastructure from data gathering to the creation of analytic attributes rather than partnering across divisions to improve the speed to implementation. For the second part of this two-part series, this week's blog post will take a deeper look at what institutions can do to avoid such a decentralized and fragmented process.
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How to Avoid Silo Analytics for Improved Credit Decisioning (Part 1 of 2)

on Wed, Mar 06,2019 @ 12:59 PM | By Chris Carlson | decision analytics credit decisioning
Analytics can be an extremely profitable investment – assuming efficiency and completion. Financial institutions, whether they handle it in house or turn things over to a trusted provider, need to know if they’re victims of leveraging or being served silo analytics to dictate their credit decisioning.
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3 Best Practices to Optimize Your Mobile and Digital Lending Strategy

As financial institutions continue to adapt their operations to evolving consumer demand stemming from the digital marketplace, it can be difficult to determine the functionality and features of a digital application tool, loan origination system and deposit account opening platform that can provide the most efficiencies and growth opportunities.  With that in mind, here are three of the most important best practices every financial institution needs to consider when evaluating its technology:
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Why a One-Size-Fits-All Approach is a Bad Plan for Profitable Credit Decisioning

Have you ever worn something that’s one-size-fits-all? I bet it either wasn’t very comfortable or didn’t quite look right – or both. It may have served a simplistic function, but that’s likely where the satisfaction ended. I recently came across a health article that claimed the same thing applies to health and nutrition.   Fitness expert, "Biggest Loser" trainer and author Jen Widerstrom said it's important to create a diet and fitness plan based on your personality because one size does not fit all. Widerstrom related her relationship with clients to a teacher in the classroom, CNBC reported. While some students may be strong readers, others may be better in math. Knowing a student's strengths and weaknesses will help the teacher develop a successful lesson plan.   Similar logic applies to lenders and the scorecards used for credit decisioning.
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Top 4 Pitfalls of Loan Software Configuration

Ever feel like your institution isn’t fully utilizing its loan software solution?  Don’t worry, you’re certainly not alone. Regardless of the scope of your direct or indirect lending footprint, institutions routinely turn to teams of business consulting experts to maximize efficiency and uncover new growth opportunities. Loan software configuration is never as simple as a plug-and-play situation you see with setting up a new television or stereo. Your system’s configuration is as much an evolving process as the landscape of the lending industry or the economy in general. To help you properly monitor your current solution or proceed with the configuration of a new platform, here are four very common mistakes to avoid when configuring your loan software solution for peak efficiency and optimal performance:
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3 Ways to Sharpen Your Digital Lending and Account Opening

When it comes to digital lending, it’s not enough to just have a presence. As technology evolves, consumer demand shifts, and lending strategies expand competition within the industry grows seemingly exponentially with every new day. Technology plays a key role in staying competitive. Institutions not only need to have reliable loan origination systems in place, but also tools that provide necessary levels of automation and configurability to maximize efficiency and profits. Traditional loan origination platforms can’t do all this alone.  To help illustrate this point, here are a few best practices to help ensure your online web application is providing the most ROI for your portfolio:
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Credit Decisioning’s Three Lines of Defense for Risk Management

For all of the football fans who subscribe to our blog, Sunday's big game will have your full attention. Even if you're not a football fan, the odds are pretty likely that you'll check it in some form or fashion to see the commercials or whoever performs at halftime. In last year's game, one team took a calculated risk by running a trick play that ultimately led it to victory (Philly special). Success on the football field, much like the real world, involves limiting risk while also at times using it to an advantage. Risk can come from anywhere. It can change at any moment and often be difficult to predict. For many financial institutions these days, risk management and control are split across multiple departments within an organization. Because these departments need structure, as well as checks and balances to properly management risk, the most successful institutions use a risk management strategy/model based on three lines of defense. This approach is an effective way to assign duties and coordinate various teams involved in the risk management and control process.
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