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How Alternative Lenders are Using Automation to Improve Operational Efficiency

By May 16, 2022March 14th, 2024No Comments
alternative lenders automation loan processing

Alternative lenders aim to provide their clients with fast and flexible loans and cash advance services to grow and strengthen their businesses. As the demand for their services grows, their current internal team may struggle to maintain quick application cycle times.

An alternative lender needs to perform various complex processes like loan application, risk evaluation, origination, underwriting, collection, servicing, and reporting. An advanced lending automation system can handle all these processes effectively and boost operational efficiency. Alternative lenders can outsource and automate the part or entire application processing to boost operational efficiency.

Automation Solutions Utilized by Alternative Lenders

Following are the automation solutions offered by an efficient outsourcing partner to alternative lenders:

Data Extraction

Data extraction is one of the primary challenges for finance companies. Such tasks require a team with a solid financial background. Instead of manual efforts, the process can be automated, which helps to extract vital information from documents like bank statements. This information can be reviewed and used to determine the credibility and eligibility of each applicant for the loan. While some of the bank statements can be a few pages, others can be over 20-30 pages depending on the monthly transactions of an applicant, which increases the complexity of data extraction. Automated processing can quickly extract data and ensure high data accuracy.

Data Entry

Automation can streamline the initial data entry for each application and enter the data swiftly and accurately into a database. Outsourcing partners leveraging advanced technologies can ensure as high as 99.7% data accuracy. ARDEM owns proprietary software for 99.7% data accuracy that can provide high standards of quality and data security. They can help alternative lenders with automation of invoice processing to loan processing.

Data Analysis

Trained Team

Selection of customers is one of the most significant and sophisticated tasks for a financing company. Automation helps in data analysis to make the task more productive than ever. Data analysis provides relevant insights that help offer the right services to the right customers. Alternative lenders can identify the financial behavior of the applicants and offer the types of services that they are most likely to choose.

This way, automation can help alternative lenders in the following processing with various solutions that results in improved operational efficiency:

  • Reducing application processing cycle time – Alternative lenders can manage and process their application processing on time always by eliminating unnecessary paperwork.
  • Shorten loan application processing time – Alternative lenders can have customized workflows for their loan application processing and data analysis as per their needs.
  • Overcoming the staffing challenges – They can be agile with an efficient outsourcing partner adapted to their existing systems. It can work on the lender’s cloud platforms and connect to their systems.
  • Improving loan processing efficiency – Tasks can be performed and coordinated quickly in real-time.

Thus, with reputed outsourcing partners like ARDEM, which has worked with numerous clients in the financial industry, alternative lenders can be ensured of –

  • Efficient loan application processing 100% on time and guaranteed quality.
  • Faster loan processing leads to better customer satisfaction
  • Control and accuracy with high-quality control methods for error identification.

For more information please reach out to us  at or call us at 908-359-2600.