As a lender, you want your organization to stay ahead in this highly competitive market. But the challenge is, other lending organizations are also striving to remain ahead.  

So, to win, you’ll have to equip your team with the best state-of-the-art tools on the market. But a lot of lenders in the market are choosing outdated solutions from incumbents. Why?  

There are two reasons. One - they’re going with incumbents because they’re safer bets. Two - despite their temptation to try new products, they’re worried about the hassle that they’d have to go through in setting up the solution.  

According to G2's Buyers Behavior Report, an astounding 93% of respondents say quality of the implementation process has a significant influence on their decision to purchase or renew a product. The other factors they consider are ROI within 6 months of implementation, followed by scalability.  

In this blog, we'll explore the challenges lenders face while choosing the right lending tech solution and dive deep into how these “safe” decisions can impact the outcomes of their business, and the entire lending ecosystem.  

The Lender's Dilemma: Compatibility and Implementation Woes

When it comes to implementing a new lending software, lenders are often in a fix to choose between a safe and outdated solution, or a modern solution from a new tech startup. Now, let’s look at the pros and cons of each of these approaches.  

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The Safe and Slow Approach

Imagine you're a lender who prefers to implement a safe technology solution to streamline your lending process. You go with a well-known vendor, despite knowing that it is outdated, and it would cost you more. All because you think it is a safe bet, right. There’s nothing wrong with this approach.  

But what are you sacrificing by taking this route?  

Extended implementation timelines: A combination complex decision-making, multiple consultation sessions, and “by the book” processes often extends the timeline to implement the software by several miles. This causes a serious impact on your ability to quickly adapt in a fast-paced market.    

Lack of Innovation: Sticking to the safe path might mean missing out on innovative features and technologies that modern lending software offers. This will give your competitors an advantage, allowing your potential borrowers to seek more convenient and efficient options from your competitor.  

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The Modern Approach

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Now, let's consider the alternative path - choosing a modern lending solution from a new tech startup. But this too comes with its own set of challenges.  

Implementation Speed Bumps: Modern lending software might not seamlessly integrate with your existing LOS or CRM. Implementation can be bumpy, causing short-term disruptions that can make you second guess your decision.  

A Steep Learning Curve: It’s not easy to make your entire company get used to the new lending software. This involves phased rollouts, training sessions, and even on-premise tech support in some cases. All this can be overwhelming. While the long-term effects are clear, people would be frustrated to go through the learning process.  

Risk of Technical Glitches: When a software platform is designed to work with multiple tools and services, it is common for the system to experience minor glitches and bugs occassionally. When your whole business is based on timely decisions, it can be nerve wracking to think about downtime or glitches in your system.  

As you see, both approaches have their own set of challenges. But the ideal way forward is to go with a lending solution that offers stability, reliability and guarantees zero risk of implementation failure.  

Before talking about such an ideal solution, let’s look at how delayed implementation timelines and settling for an outdated technology stack can have an impact on lenders.  

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The Ripple Effect Technology Implementation on Lenders  

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The choices lenders make regarding compatibility and implementation don't just impact them; they affect their entire lending ecosystem.

Team Efficiency: Choosing a slow implementation path can make the lives of your team members more challenging. It doesn’t reduce their burden and keep their workload the same. This causes frustration, which in turn affects the entire loan approval process.  

Borrower Experience: The effectiveness of your lending solution delays the loan pre-approval and approval processes, leading them to a bad borrower experience.  

Business Outcomes: Your business outcomes are directly impacted by the speed of software implementation. The extended timeline, risk of the technical glitches, and the operational cost may eat into your profit margins. Meeting the targets can be a challenge with all these factors, and it can have a direct impact on your reputation in the marketplace. Other lenders and borrowers may perceive you as a lender who is slower and less adaptable.    

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Prudent AI's simple and seamless Implementation Cycle  

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Earlier, we spoke about an ideal lending solution that is modern and at the same time guarantees stability, reliability, and zero risk of implementation failure.  

Now, it’s time to talk about that ideal solution: Prudent AI.  

Prudent AI stands out as a model of effectiveness and reliability in a world where implementation speed is essential. Here is how prudent AI wins over other technology solutions in the market.  

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Quick and Simple Integration: Our software is built to integrate with your favorite LOS and CRM systems. We can get Prudent AI set up for your company and get it up and running in just 5 days!

Zero Risk of Implementation Failure: We designed our implementation process to be fast, efficient, and with no room for loss of data or implementation failure.

No training sessions. Become a pro in 30 minutes: We get it – learning new software can be a challenge. That's why Prudent AI has made an investment in developing a user-friendly interface and providing your employees with minimal to no training. A 30-minute onboarding call and your team can start using the tool like a pro.  

A Highly trained team at your service: We take the risk of technical glitches seriously. Prudent AI's robust white-glove system is always ready in case you need help.  

Data Security: At Prudent AI, we take your trust and the security of your borrowers’ information incredibly seriously. It’s our top priority. We’ve got a number of processes and checkpoints to make sure the data you process stays secure. You can learn more about it from our security and privacy commitment.  

Get access to the latest AI features: Get your hands on the latest technology and leverage them to streamline your lending process operations. Our AI features are helping lenders make quicker lending decisions and providing a top-notch experience for your customers.

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In a market where time is of the essence, the choice of lending technology is crucial. The dilemma between a safe, outdated solution and a modern, yet potentially disruptive one is real. Prudent AI emerges as a reliable and efficient choice with its promise of seamless implementation, quick integration, and a minimal learning curve. It's not just about adopting a modern lending solution, but about embracing an operational ethos that accelerates processes, enhances team efficiency, and improves borrower experience, setting lenders on a path to a competitive edge.

If you wish to experience the power of Prudent AI, sign up for a free trial.  

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