Four Things Fear Makes Lenders Miss Out On

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We’re a bunch of control freaks. It’s one of the biggest mental barriers to reaching new levels of success, and it’s more common than we’d like to admit.

I’ll raise my hand. I spent more than 15 years working in credit unions and community banks, and for many of those years, I physically drove loan documents down to the courthouse to be recorded. (And no, not in a horse and buggy, for as antiquated as this sounds today!)

It was a time-consuming and inconvenient ritual. Despite that, I felt much better knowing I was in control of shepherding these records where they needed to go. Because of this “control” I had over the process, I wasn’t the first in line to try e-recording. I trusted myself more than something new.

I could resist it all I wanted, but the force of change was greater than my grip on those weekly drives. When I finally tried e-recording for the first time, I thought, “Why the heck didn’t I do that sooner?”

Times have changed but many lenders are still using the same processes. Concepts like lending process automation take incorporating new technology to the next level. That can be scary, especially if it feels like you’re relinquishing control.

However, that’s only one way to look at it. The flip side is what’s being missed out on. Without staying receptive to continuous advancements in financial technology, here’s what I worry lenders will miss.

The potential to eliminate human error. People make mistakes. It’s simply inevitable that human-centric processes will be prone to errors. The ability to consistently and accurately execute your loan policy at scale is a huge benefit of automation. 

An opportunity for greater efficiency. No one will argue that much of the loan process is time-consuming, tedious, and not the most satisfying work. Today’s technology is highly capable of handling these chores, and in many respects, better than people. It makes the job more enjoyable and gives your team time back in their day to  develop higher-level skills, and spend more time catering to their borrowers.

Better use of human resources. When willing to unlock automation’s potential, a world of possibilities emerges when it comes to human talent. Team members can redirect energy and redefine roles in ways that inspire more creativity, productivity, and satisfaction.

The chance to accelerate innovation. An institution that doesn’t fear change is one where innovation can take root. This is more than investing in technology – it’s a cultural change. To establish leadership, this growth mindset will keep your institution always moving in the direction of the future. 

Automation is powerful technology that produces powerful changes – and yet, it is surprisingly simple to implement. Still, adopting it requires a level of trust that must be earned. More than 300 financial institutions use and trust the LenderClose platform as a part of their home equity lending process. To learn more about our lending automation solution, reach out any time to start the conversation.

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