Cloud-based systems are becoming more prominent with lenders as borrowers demand new ways to access their files anywhere, on any device, at any time. This technology provides connectivity and mobility to a new wave of first-time homebuyers well-versed in mobile technologies as well as borrowers reentering the market looking to buy their second homes and dreading a low-tech, disorganized loan origination process. Using a cloud-based document management (DM) system provides lenders with a variety of clear benefits that can change the way they do business.
Better service through a smoother workflow processes:
The Cloud is the best way to provide the flexible service modern consumers need. DM systems using the Cloud enable lenders and borrowers to access and share files from their mobile or tablet devices. Modern consumers want to feel empowered and as if they drive the pace of the origination of their own loans. Using the Cloud to create a more open system that streamlines the flow of information gives them more ownership of the process and can even speed up the origination of loans. Rather than being a despised part of purchasing a home, a smooth origination creates a rare but positive experience that clearly differentiates a lender’s commitment to good customer service.
Increased data security:
There is growing concern about data breaches and this makes security one of the most important benefits of Cloud-based DM systems. Contrary to popular belief, the Cloud is not less secure than more traditional systems. In fact, it enables lenders to more easily use digital rather than paper documents, which is much more secure. There is never a fear that a digital document will be lost or that an email with sensitive information will be hacked. Cloud vendors are pouring large amounts of resources into securing their services every day as that is a part of their core business.
Cloud-based DM systems offer a higher level of automation and this enables lenders to build a system that shoulders the compliance burden. A fully automated system accessing information via the Cloud is proactively ready for an audit by confirming the regulatory status of every document at the push of a button. Preparing for audit can take a few hours rather than days and regulators can complete their work more quickly, meaning the lender can focus on originating loans much sooner.
The Cloud is also very cost effective. Many lenders using older, legacy systems often end up paying much more for IT because they have a fixed cost whether or not their businesses are slow or busy. The Cloud allows users to pay more when they need more service and less when business slows down.
The Cloud is also much more scalable because it can elastically grow to handle volume and is easier to integrate supporting technology via web services without any loss in capabilities. More traditional systems require the use of bolt-on technology which often degrades the uses capabilities and can actually make lenders less competitive.
Successful lenders evolve with the times and are always striving to provide the best service to customers at the lowest price. Cloud offers both of these and is increasingly viewed as the wave of the future. If they haven’t already done so, leading lenders are educating themselves on the benefits of Cloud technology and developing plans for using it.
About The Author
Steve Wiser is CEO of Cleveland-based Specialized Business Software, a provider of custom software solutions for insurance, mortgage and financial services companies. For more information, visit www.specializedbusinesssoftware.com. For additional information on Docunym, a cloud based document management and workflow system, please visit www.docunym.com.