The global turmoil amidst the pandemic caused a lot of organizations to rethink the way they do business. Leasing and loan companies were no exception. They too were made to adapt to this new landscape and to tailor their services for the new needs of clients. At the epicenter of this whole transition is loan management software and digital lease management solutions. In this article we’re going to see how a decrease in demand made financing and leasing businesses utilize digital solutions for the sake of operational flexibility.
End-user preferences had a large impact
With an overall decrease in business and number of clients, financing companies were seeking solutions to optimize their activities and began tailoring their services for the current landscape. As businesses became less and less certain about their future, they were shying away from financing deals and delaying expansion plans, etc.
Thus, the numbers of loan origination dipped well below their pre-pandemic averages. As it turned out, with between 33% and 75% loss of business, the main area of focus for financing companies became end-user preferences. Before Covid, only about a half of companies were devising a plan to optimize their services, according to user-preference and cost reduction. Overall, customers became more and more skeptical towards long-term, fixed-condition arrangements, leaning more towards variable terms for shorter periods, etc. To sum up, close to 40% of mid to large-sized organizations in financing began collaborating with their customers to better understand their preferences
Loan management software for optimization
Optimization is a term which most businesses simply love. If a business is capable to optimize certain processes, it can reduce spending while also increasing profits. Due to frozen promotions, reduced numbers of clients or the demand to sustain remote working teams, companies lost a lot of money. Hence, in terms of leasing, payment holidays and similar measures became a top priority for clients.
Without looking to deep, most organizations went the right way and began implementing modern digital as well as AI solutions to optimize and improve administrative and overall service. This means that more companies began implementing top-end lending software for more streamlined data management.
This led to a much faster administrative task management. Thanks to leasing software, organizations or teams were now able to do things like loan termination, quotes or bill clients with a few clicks. Hundreds of saved hours were a direct result of that.
Finally, thanks to the implementation of software, finance companies had a better overall view on their resource management. This means that they were able to notice bottlenecks, see the weak and strong points to tailor and adapt services and packages if need be.
In conclusion, loan management software and dedicated AI tools helped financing companies become more resilient for the foreseeable future. Thanks to a more attentive view of their clients’ preferences, and the goal for optimizing activities, financing businesses created a much more stable foundation for their work.