Small lenders face multiple challenges, such as processing large volumes of loans quickly and efficiently, maintaining effective communication with customers, and servicing complex borrowers. These issues often result in slow loan processing cycles, low customer satisfaction scores, and poor customer retention rates.
Across all industries, 54% of businesses use outsourcing to close a gap in crucial procedures; in the financial sector, this percentage jumps to 71%.
By outsourcing certain activities to specialized partners who offer services at lower costs or higher efficiency, lenders can gain access to new opportunities and increase profits. Thus, small lenders’ growth and agility are boosted by outsourced loan fulfillment.
How can outsourcing help in bringing agility to the lending process?
Outsourcing can help in bringing agility to the lending process in the following manner:
1. Better Speed and Efficiency
Lenders often face lengthy application timelines and a higher level of documentation to ensure a robust underwriting decision. Outsourcing allows lenders to outsource these processes to third parties with the necessary skills, experience, and knowledge. In turn, they can focus on lending decisions and enjoy much shorter approval times and greater agility.
With ARDEM’s Alternative Lending Outsourcing Services, lenders can quickly reduce loan origination costs, increase loan volume, and improve operational efficiency. Lenders can utilize our expertise and technological resources to save time and money. Due to the agility of our teams, we can adapt to your current systems or work on our cloud platforms.
2. Access to Top Expertise
A core benefit of outsourcing is access to highly skilled experts who can help solve complex problems in-house. However, these skills may be expensive and difficult to manage internally.
Outsourcing provides access to those same skills at much lower costs while still giving your business complete control over the quality and training of the talent.
3. Capacity to Work on High-ROI Tasks
Outsourcing allows lenders to concentrate on activities that deliver the highest return on investment without diverting time and effort to routine operational matters. This frees up time and resources to focus on the activities that drive the most outstanding profitability for the organization.
4. Cost-Effective Services
Many organizations currently struggle to afford the infrastructure, and human resources cost associated with operating a traditional lending operation.
By partnering with an outsourcing company that offers flexible solutions, lenders can achieve economies of scale and reduce the total cost of ownership across the entire portfolio. Additionally, lenders can achieve cost efficiencies and reap additional savings by reducing the need for internal IT systems and maintaining solid relationships with vendors.
With ARDEM’s outsourcing services, companies can improve their operational efficiency & reduce costs. We use the ideal blend of experienced professionals, reliable procedures, and cutting-edge technology to assist our partners in operating more efficiently.
5. Leverage The Technology
Technology is critical in helping lenders improve efficiency and enhance user experience. However, investing in technology alone will only give you half the picture. You must also invest heavily in people, processes, and governance to understand what technology does and does not do.
Partnering with an experienced outsourcing partner helps you build a balanced approach that delivers maximum value.
By leveraging the power of AI and machine learning, ARDEM Automation automates the loan origination and management process. This enables financial institutions to offer better service and reduce operational costs. Thus, focus on your core competency and grow your business.
Conclusion
Due to the complexity and intricacies of loan processing and underwriting, it is often far smoother for lenders to hire a top business process outsourcing company to handle those operations on their behalf. By doing this, small lenders maintain a competitive edge throughout market cycles.
ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs. For more information please reach out to us at pricing@ardem.com or call us at 908-359-2600.
