Implementing a Loan Origination System (LOS) into your lending business can be daunting, fraught with challenges and obstacles. This article will delve into the various LOS implementation challenges and explore strategies to overcome them effectively.
LOS Implementation Challenges And Ways To Overcome Them
Transitional Phase
One of the most significant hurdles in LOS implementation is the transitional phase. When change arrives, it often brings stress along with it. When transitioning to an online LOS software solution, employees accustomed to a physical, manual loan origination system may experience anxiety and stress.
Tip to Overcome:
To address this challenge, consider organizing a symposium or informational session where employees can learn about the new LOS software. Create opportunities for Q&A sessions to address their concerns and instill confidence in the transition process. Building trust between management and employees is crucial during this phase.
Customers’ Anxiety
Just as employees may be hesitant to embrace change, customers can experience anxiety and confusion when introduced to new features like portals, self-service forms, or cloud-based services. This can lead to customer frustration due to the automation of services.
Tip to Overcome:
To alleviate customer concerns, establish a dedicated customer service unit that promptly responds to inquiries regarding the new LOS administrative services. Consider hiring content strategists to create informative blogs and content that explain the new technology and provide customers with the knowledge they need.
Sponsors and Decisions
Sponsorship plays a pivotal role in loan origination system implementation. Having sponsors who can support the process and mitigate any challenges that arise during implementation is essential. Sponsors often act as valuable business partners, influencing favorable decisions for lending businesses and unions.
Tip to Overcome:
Building a trusting relationship with sponsors is vital. Conduct regular audits, involve sponsors in decision-making processes, and provide them with periodic financial statements to secure their investment. This transparency and collaboration can foster a strong partnership.
Concerns about New Tech
Implementing LOS software in lending institutions often confuses users due to the introduction of new and unique features. Users may find the new loan origination process and system perplexing.
Tip to Overcome:
Financial institutions should consider hiring a dedicated Content Strategist who can develop informative blogs, create engaging social media posts on platforms like Facebook and Instagram, and address user queries. This proactive approach will raise awareness, build trust, and enhance user understanding of the new technology.
Evaluation
Every journey, especially one aimed at realizing your business dreams, comes with its set of challenges. Implementing LOS software is no exception, and the path may sometimes be arduous. However, it’s crucial to remain resilient and determined, regardless of the difficulties encountered.
Overcoming LOS Implementation Challenges
Upgrading from a manual to an online LOS system is undoubtedly a demanding journey, but it can be a smooth transition with the right team and strategies in place. Selecting the ideal team for your lending business is a pivotal decision shaping your business’s future.
ATI and its dedicated team have provided LOS admin and LOS software installation services to financial institutions for over a decade. Our commitment to excellence is unwavering, and we offer our services 24/7/365. Visit our website today and discover the perfect business solution for your needs.
While LOS implementation presents its share of challenges and issues, your lending business can successfully transition to a more efficient and streamlined system with the right approach, teamwork, and commitment to overcoming obstacles.
