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Case Study: How one Lender Generated More Profits with Totality LMS
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This Case Study showcases the results one Lender realized after implementing Totality LMS, including a 50% reduction in loan processing times.
One Totality client, a short-term Lender licensed in 6 states, had experienced no growth in their portfolio in the last 3 of 5+ years in operation.
The lender utilized a loan management software popular in the industry. However, the processes were very manual with little possibility for automating those processes. This outdated system led to several challenges:
Inefficiency: The manual processes were time-consuming, error-prone, and required a significant workforce to handle loan applications, approvals, loan funding, and collections.
High Labor Costs: The lender’s labor costs were substantial due to the need for a large team to manage the loan operations, leading to decreased profitability.
Limited Scalability: As the lender looked to expand its loan products and customer base, it became evident that the manual loan management system was not scalable to meet the funding targets and organizational needs.
Limited Operational Insights – Pulling reports was a manual process and additional manual processes in excel were required to draw any insights on the business. Because of the time-consuming nature of this, the lender did not have real time data and insights to make pivots as necessary.
To address these challenges and pave the way for efficiency gains and reduced labor costs, the lender searched to find a new loan management software partner that could help them take back control of their organization. After thorough research and evaluation, they selected Totality LMS, a comprehensive LMS tailored for the short-term lending industry.
Implementation and Results:
Automation of Loan Processes: Totality was customized to automate various stages of the loan lifecycle, including customer outreach, application processing, quality assurance, approvals, funding, and collections. This reduced the need for manual intervention and significantly accelerated loan processing times.
Enhanced Data Accuracy: With Totality’s automation triggers, data errors were reduced to almost zero as the monotonous tasks have been automated. This not only improved the overall quality of data but also minimized the risk of compliance issues.
Quicker and More Informed Decisions: Totality’s advanced data analytics platform updates automatically throughout the day. With these real-time updates, the lender now has complete visibility into the drivers of the business and has been able to make significant changes to operations based on the insights gained.
Scalability: Now that the lender can leverage all of the automation capabilities of Totality, they have now begun to increase their monthly loan originations without a need to significantly increase staffing.
Cost Savings: The most significant impact was the substantial reduction in labor costs. The lender was able to streamline its workforce, reallocating resources to more strategic roles while reducing the need for manual data entry and handling.
Customer Experience: The improved efficiency and faster loan processing times led to a significant enhancement in the customer experience. Applicants can track their loan applications online, receive quicker responses, and enjoy faster access to funds.
After the implementation of Totality, the lender experienced the following outcomes:
Reduced labor costs by 40%, resulting in substantial cost savings.
Increased efficiency led to a 50% reduction in loan processing times.
Increase in operational insights has led to additional operational efficiencies. These have included an increase in lead conversions rate by 27%, and a reduction in default rates by 2%
Enhanced scalability enabled the lender to expand its loan portfolio without proportional increases in operating costs.
Improved customer satisfaction scores by 23% due to faster loan approvals and disbursements.
Reduced error rates resulted in fewer compliance issues and penalties.
The lender’s adoption of Totality LMS as its Loan Management Software proved to be a pivotal decision. By automating loan processes, reducing labor costs, and enhancing scalability, the lender not only improved its operational efficiency but also provided a superior customer experience. This case study demonstrates the significant benefits that modern software solutions can bring to lenders looking to streamline their operations and remain competitive in a rapidly evolving industry.
The results are clear: Totality clients are seeing measurable improvements in their operations. Totality LMS can help your operations, too!