Unless you’ve been living under a rock, you’re undoubtedly aware of where we are in “the cycle”. Loan origination is slowing down, delinquency is rising, and everyone’s hunkering down for another long winter. But this is not the time to hibernate—this is the time to act!
It’s this perfect storm of rising interest rates driving up cost-of-funds, in combination with higher delinquencies leading to higher cumulative net loss, all but eliminating what little spread of profit one can hope for in subprime lending. These downturns are much like the California wildfires that ravage through our forests every few years. It’s hell going through it, but the beauty and rebirth that comes out of it can be amazing.
What can you do while you’re going through it? You can fight back! The most obvious thing to do on the loan originations side is to tighten your approval criteria in accordance with how much you want to (or are forced to) scale back your growth trajectory. This may sadly require staff reduction in the sales and marketing department, along with similar trimming in the loan originations department.
In situations like this, the objective is to reassess all areas throughout your organization where efficiencies can be gained. But what about collections? Now is the time to finally consider optimization strategies aimed at maximizing collections while minimizing the staff required to do the job. After all, this is the “Moneyball” era, and certainly there must be modern advancements that make this sort of thing possible. Indeed there is! It’s time to look at Lendisoft LMS.
Lendisoft was founded by a team of risk management professionals with deep experience in optimizing the lending process through scoring and other automation techniques. Industry-wide, there’s quite a disparity in collection performance from one lender/servicer to the next. Ironically, some of the biggest name servicers in the industry are so unmotivated in their approach, they are terrible at collections. The absolute best collection shops in the industry have chosen-to “Build” vs buy their software. No more! Lendisoft LMS goes head-to-head with these amazing home-grown solutions, including custom scoring with risk grades that enable you to identify low-risk/low-balance segments that can be strategically assigned to contact timing-strategies perfectly calibrated for optimal payment performance. Multiple, omni-channel strategies are created for different risk profiled borrower segments. Pair this approach with a cutting-edge assignment process that marries the highest risk accounts with your top collectors, and you have your overall strategy in perfect alignment with borrower risk.
And so now is the time to act! And while Lendisoft LMS is ultra customizable to fit your organization’s needs, it is 100% cloud-based and very affordable. It’s also a no-code solution so your business execs can fly the ship. Gone are the days you need an IT staff to implement important business rules. Our mission is to even the playing field, making the industry’s best enterprise collection tools attainable in the small-to-mid sized lending market.
Hunkering down for the long winter? Now’s the time to act—schedule a Lendisoft demo today!