Digital lending is helping lenders bring loan products to market faster, provide customers with more accessible user experiences, and leverage data analytics to meet customer expectations.
Two of the most popular and beneficial tools in the industry today are loan origination systems (LOS) and point-of-sale (POS). Lenders using an LOS benefit from streamlined loan decisioning, simplified tracking, and process automation. Likewise, POS solutions can improve productivity and enhance the user experience of the lending process.
But what happens when lenders integrate LOS and POS into the same workflow? An advanced LOS like Fuse combines these benefits. Read on to learn how it is possible, and how an integrated solution can benefit lenders.
What Is a Loan Origination System (LOS)
A loan origination system (LOS) is a tool designed for lenders to simplify the complexity of loan origination by standardizing typically cumbersome processes such as:
- Collecting data from loan applicants to complete their applications
- Reviewing loan applications to determine applicants’ creditworthiness
- Scoring the risk on each borrower’s loan application
- Pricing out the funding of loan products
- Approving a loan application and disbursing funds to the borrower, if successful
- Denying loan applications that do not meet approval requirements
What Is a Point of Sale (POS) Solution
Point of sale (POS) solutions enable businesses to provide their customers with various payment options to cater to customers’ preferences for cash, debit, or credit payments. In the lending industry, these solutions offer borrowers the ability to take out a loan instantly to pay for purchases.
Instead of pausing a transaction to apply for a loan at a different website, POS lending allows a customer to take out a line of credit at a store (in-person or online) to complete the purchase hassle-free. Considering the flexibility of payments with a lending POS, many financial institutions have adopted these solutions to expand access to on-demand credit to a wide range of customers.
With a LOS/POS solution, borrowers can complete a loan application online—in the comfort of their homes—without physically going to a bank, credit union, or any other financial institution. Plus, modern loan origination software can increase the flexibility of loan origination; they secure customers’ sensitive data, scale up a lender’s capacity to process multiple applications, and optimize lending decision-making.
5 Advantages of Point of Sale (POS) and LOS Integration
So, what happens when a lender integrates a POS and LOS to streamline loan origination?
#1 Streamlined Application Process
A customer-facing LOS/POS can swiftly collect documents and data from applicants and immediately start application processing, review, and decision-making. Integrating these tools speeds up the process and avoids the delays of independently collecting data via the POS and then transferring it to the LOS for loan origination.
#2 Enhanced Customer Experience and Satisfaction
Increasing borrowers’ satisfaction starts with making the loan origination lifecycle faster and more user-friendly. In the ideal scenario, even borrowers who are not tech-savvy should also have an easier time applying for a loan.
#3 Improved Operational Efficiency and Reduced Costs
With a LOS/POS, lenders can effectively reduce the staffing required to process applications and make decisions manually, which translates into lower operating costs and more opportunities to automate time-consuming, cumbersome processes that can delay application processing.
#4 Assured Compliance and Reduced Errors
Modern LOS/POS solutions have built-in compliance workflows that enable lenders to remain compliant with regulatory standards at each stage of loan origination. Streamlining these workflows with loan origination software for banks and credit unions reduces the margin of error lending institutions are likely to observe with manual data processing.
#5 Faster Loan Approvals and Closing Times
LOS/POS tools are designed to process applications quickly and provide borrowers with approvals (or rejections if unsuccessful) within shorter timeframes than traditional, manual loan origination processes. Doing so also reduces the average time borrowers wait to close on approved loans, which increases conversions.
Key Benefits of Fuse’s Advanced Loan Origination System
As a modern lending solution, our loan origination software is flexible, secure, and scalable—meeting the most pressing needs of any lender. Besides seamlessly integrating POS and LOS functionalities, our loan origination platform contains customizable workflows so that the solution works for you, and not the other way around.
With Fuse, lenders can automate decision-making via multi-program decisioning and self-service financial rules—all without prior coding experience. Lenders can also leverage advanced analytics and reporting to make data-driven decisions, increasing accuracy and decreasing risk.
Regardless of a lender’s size, Fuse’s scalable and flexible solution ensures that organizations can scale up with future growth in mind. The combined benefits of Fuse as an industry-leading LOS with a POS also help lenders improve productivity and increase revenues.
Schedule a demo today to find out how Fuse fits into your workflow.