Loan Lifecycle Management vs Loan Origination System

How are Loan Management systems reshaping the Money Lending process?

Lending is one of the key pillars of banks, credit unions, and other financial institutions, but still, most of them are burdened by legacy offerings. When it comes to offering loans, outdated non-digital systems hampers both the customer experience and business revenue. However, with digitization, banks have moved towards adopting the latest technologies and software that make the whole process less cumbersome.

Financial institutions providers are rapidly adopting a digital lending solution, either a LOS (loan origination system) or an entire LMS (loan lifecycle management system), leading to improved customer experience, better decision-making, elimination of paperwork, and reduction of manual efforts.

What is LOS, and LMS and how are both different from each other?

LOS is a software platform/ system used by financial institutions, such as banks, credit unions, and mortgage lenders, to manage and streamline the process of originating loans (home loans, car loans, personal loans, etc.). It helps in simplifying the various stages of loan origination, from application submission to loan approval and funding.

LOS primarily covers the initial stages of lending: from application submission to loan approval and funding.

LMS enables financial institutions to effectively manage the entire lifecycle of a loan, from origination to servicing and eventual closure, and enables lenders to effectively monitor and track the performance of their loan portfolio.

LOS is a part of the entire LMS. Other areas of LMS include Loan servicing, Payment processing, CRM (customer relationship management), Compliance and Risk Management, Document Management, and Reporting/ Analytics.

Whereas LOS covers a narrower scope, specific to loan origination, LMS has a broader scope, covering end-to-end lending lifecycle.

Arttha provides key solutions in both the LOS and the entire LMS space. Now, financial institutions can transform inefficient and lengthy loan and mortgage origination processes into a fully digital, paperless, risk-conscious, and customer-oriented experience by using Arttha’s digital lending solution.

What makes Arttha Loan Lifecycle Management system so compelling?

Configurable Loan Products

Create multiple loan products dynamically with interest, term, and penalty configurations available out of the box.

Loan Attributes

Leverage all the loan management attributes like Rebate Management, Grace period Management, Different Grace Types and categories, Penalties Management, and Loan Fee Management with Arttha.

Loan Management

Streamline the entire loan management process with document management, collateral management, multiple collateral types, loan restructuring, workflows for loan approvals, and loan loss provisioning.

Advanced Features

Arttha lending solution offers added value with features, such as co-lending, pay later lending, revolving loans, balloon payments, configurable computation methods (equal installments, equal principal installment, and flat interest), and a no-interest period.

Get in touch with Arttha today and experience digital lending excellence.

You can learn more about our loan management offerings here.