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A short presentation that provides insights into the steps you need to take, and the things you need to consider, to develop an end-to-end lending process that is truly paperless.
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Paperless Lending Made Easy: Streamlining the Loan Management Process
Moderator: Dan Kim – Product Marketing Manager
Presenter: David Geddes – Manager, Sales Operations
Agenda
1. Business Challenges with Paper-Based Lending
2. Ideal Paperless Lending Environment
3. Benefits of Paperless Lending
4. 5 Things to Consider When Going Paperless
5. How to Get Started
6. Summary
7. Next Steps
Why Paperless Lending?
Moving towards paperless will:streamline your lending process reduce costs, and boost operational efficiencies
Business Challenges
• Processing loans is more complex• More work must be completed in less time• Longer approval cycles• Higher operating costs• Inconvenient for Borrowers
Manual Lending Process• Requires documents compiled from various
sources• Hardcopy files add delays in the approval
process• Time wasted looking for misplaced
or in use documents• Reprints, couriers and physical
storage fees drive costs higher
LOS Helps Provide Some Automation
• Using an LOS helps deal with some automation and electronic processing
• Compile loan applications electronically• May include some workflow• Some files still come in hard copy• Eventually all files are printed and stored
in hard copy
What is the Ideal Lending Process?• End-to-end processing of loan application• No printing required• Scanning solution for hardcopy documents• Integration with ECM for automated
uploads• Entire loan application folder stored in your
ECM system• Integration with Online Banking to expose
lending files
Paperless Lending – The Process Customer access via 3rd
party portal (e.g. Banking/ brokerage portal)
Compile Verify Approve Upload via ECM integration
Electronic signature capture
Output to print for client copy
Secure Authorized
Access
Loan officer workstation WWW
SSOAPIWEB APISOAP
Email/SMS notification of
document availability
Store Manage Access
Doc. Mgmt. SystemPDFTIFF
LOS System
Scan and Index
Practical Reasons For Paperless Lending
Innovation• Innovation &
Agility are keys to growth
• Higher level of security with Digital Signatures
• Help the organization respond to change
Innovation• Innovation &
Agility are keys to growth
• Higher level of security with Digital Signatures
• Help the organization respond to change
Compliance• Complying with
internal policies, industry regulations & legal requirements
• Demonstrate that standards and procedures are in place and being followed
Compliance• Complying with
internal policies, industry regulations & legal requirements
• Demonstrate that standards and procedures are in place and being followed
Efficiency• Give people ready
access & enable them to be more productive
• Empower them to make informed decisions
• Reduce costs related to content creation & storage
Efficiency• Give people ready
access & enable them to be more productive
• Empower them to make informed decisions
• Reduce costs related to content creation & storage
Improve• Information
Availability• Information
Security• Customer Service
Improve• Information
Availability• Information
Security• Customer Service
Ensure• Disaster Recovery• Business
Continuity• Demonstrate
Regulatory Compliance
Ensure• Disaster Recovery• Business
Continuity• Demonstrate
Regulatory Compliance
Reduce• Costs associated
with printing, storage & retrieval
• Time Wasted on Manual Search & Retrieval
Reduce• Costs associated
with printing, storage & retrieval
• Time Wasted on Manual Search & Retrieval
Tactical Benefits of Paperless Lending
Considerations for Paperless Lending
1. Working with digital signatures
2. Borrower signing process
3. Dealing with hardcopy files
4. Automating the upload of loan files
5. How the borrower get their copies
1. How Digital Signatures Work
• All electronic forms must have signing blocks created
1. How Digital Signatures Work
• Work with your LOS provider to get digital signature-ready forms & workflow
• Acquire digital signature technology
• Configure Adobe for appropriate verification/certificate plugins
Increased Security with Digital Signatures
• Digital signature technology prevents altering of documents
• Icons show the validity of a signature
Increased Security with Digital Signatures
Click on a Signature to view the Status:
Increased Security with Digital Signatures
Click on a Signature to view the Status:
2. Effects on the Borrower Approval Interview
• Can affect the order of operations
2. Effects on the Borrower Approval Interview
• Can affect the order of operations
• May require some re-design on the workstation
2. Effects on the Borrower Approval Interview
3. How to Deal With Hardcopy Files
• Some files still originate in hardcopy– 3rd party appraisals– Proof of income letters– Receipts, invoices, title
• Plan to have a capture solution• Understand the workflow and how/when
files are scanned & uploaded
4. Automate the Upload of Loan Files
• If you’re using an LOS: – Look for Integration with your document management
system– Discuss digital signature options they have developed
• If you’re self-managing the loan forms: – look to automate the upload using “hot folders”– use scanning/indexing tools– Investigate your options for digital signatures
5. How the Borrower Gets Their Copy
• Be Flexible - some borrowers may insist on printed copies
• Look for integration between your Document Management system and Online Banking
• Be selective in which files are offered via online banking
How to Get Started
• You don’t have to get there in 1-step• Start with scanning hardcopy funded loans• Decide what to do with archived files• Work with all providers to prepare for
additional functionality• Consider Doxim’s 5 Easy Steps for DM
Deployment
Apply the “5 Easy Steps for DM Deployment”
• Business Assessment• Identify & prioritize• Take a phased approach• Benefit realization• Leverage your investments
Overall Summary
• Paperless Lending doesn’t have to be achieved in a single phase
• Electronically stored loan files provide many benefits
• Digitally signed documents are more secure• Several digital signature solutions/methods• A scanning & indexing solution is required for
hardcopy forms• Borrowers can benefit from Paperless Lending
Next Steps
• Include your LOS provider in your planning• Understand the hardware & software requirements• Optimize the overall business process for
paperless lending
Other Resources: • Digital Signing Technology: Topaz, DocuSign• LOS Providers: Technicost, ProLender, Horizon
Visit www.doxim.com to learn more
Contact us at [email protected]
Follow us on twitter @doxim_inc
Subscribe to our YouTube channel, Doxim TV
