9 Best Loan Servicing Software in 2023

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The average borrowers today are a lot different than what they were ten years ago. They are more tech-savvy, use multiple devices, and have more lending options than before — with some of these options being unique financial technology products that we’ve never seen prior.

In 2020, millennials were already accounting for 53 percent of home-purchase mortgages.

Today, it’s normal for you to fill out a loan application or manage your mortgage payments while you’re stuck in traffic or waiting for your flight at the airport.

This increase in demand has led to so many lenders taking action. More than 9 in 10 lenders in 2020 offered online applications and portals to their borrowers.

The process of lending can be streamlined with the help of loan software. With loan software, financial institutions big and small can have the resources to implement and scale digital products personalized at every step of the loan lifecycle.

In this blog, we explore the benefits of loan software and nine platforms changing how borrowers manage their loans.

9 Best Loan Software Providers in 2023

  1. SimpleNexus Mortgage Platform by nCino
  2. Sageworks Lending
  3. Salesforce Finance Services Cloud
  4. Floify
  5. Sofi
  6. Bryt
  7. Turnkey Lender
  8. Loansifter
  9. Finflux

What Is Loan Software?

Loan software is used by lenders to centralize information, tasks and financial services throughout the loan lifecycle. These capabilities are often related to loan origination, refinancing, servicing, debt collection, customer management and credit scoring.

Financial institutions use loan software to have more visibility into client data for faster processing. With a cloud-based solution, your loan officers can use automated workflows, calculations, and decision-making to collect documents, pull up pricing options, manage compliance and engage with borrowers every step of the way.

Depending on your target audience and business use case, you can use a one-stop shop for all your digital loan servicing needs or build a tech stack of loan software with different strengths.

Integrations are a critical part of the loan software ecosystem, so you’ll want to look for platforms that can communicate best with your core systems, relationship management tools, process management tools, and other third-party financial products that can enhance the customer experience.

Benefits of Loan Servicing Software

Traditional lenders today are competing with financial technology companies for end-to-end loan management. What sets them apart? Speed and simplicity. 

In a world where we can open bank accounts, conduct peer-to-peer transfers, and use our credit cards right through our phones, it’s clear that complex drawn-out banking processes aren’t going to cut it. Bank customers and borrowers expect to engage with lenders whenever they most need it, whether at home, in the office, or while out and about. But only 7% of banks handle the entire loan process online.

If you’re still iffy about loan servicing software and what it can do for your business, here are a few benefits that might change your mind:

1. Reduces risk

From compliance management to debt collection, loan servicing software can help your team track activities, payments and documents all in one place. With a holistic view of each client’s account, you can avoid missing deadlines and proactively remind borrowers about documents and payments to submit. Automated workflows and AI-driven tools can help your loan officers personalize the borrower experience with upfront payment schedules and credit risk modeling so that customers can prevent bad debt.

2. Saves time

Customers choose to use fintech leaders because they can shorten the processing time by almost 10 days. When borrower information is streamlined and in sync with core systems, you can include pre-qualification, loan applications, document collection, compliance checks, and approval processes within a single frictionless workflow. Your loan officers can save days worth of work by removing the need to pull borrower information from different sources, manually review documents, and generate reports from scratch. 

3. Reduces calculation errors

With loan software, you can use pre-determined rules and steps to avoid operational mishaps during transactions. You can ensure consistency in your approach while having the flexibility to configure elements so calculations best reflect specific borrower accounts and situations. Without automation, there’s a higher likeliness of variability if loan officers deal with missing or incorrect information, workplace distractions, or heavy workloads. 

4. Data security

Your client data is more protected with enterprise-grade cloud security than it would be by leaving a paper trail. Your loan software allows you to put robust security measures in place, like biometric identification and two-factor authentication to log into accounts and dashboards. You can also set up alerts and triggers that keep loan officers and borrowers aware of suspicious activity, like attempted logins in unfamiliar places or locking accounts because of multiple failed logins. 

5. Better customer experience

Whether it’s applications, document submissions, and payments, the entire loan process can be overwhelming for borrowers — especially if it’s their first time taking a loan or if they’ve had bad experiences with financial management. A digital experience gives your team the power to curate engaging user interfaces that help borrowers cut through the noise and prioritize information that’s most relevant to them.

You can implement guided walkthroughs, summarize complex information, and add visual cues to ease borrower anxiety. With mobile applications and responsive design for multiple devices, you can also optimize communication methods to meet customers wherever they are.  

9 Best Loan Software Providers in 2023

In this list, we’re introducing you to nine loan software providers with which loan officers and borrowers find the most success.

ncino

1. SimpleNexus Mortgage Platform by nCino

  • Review Rating: 4.9 / 5
  • Pricing: N/A

SimpleNexus is known for covering every stage of mortgage transactions. They offer digital solutions that loan officers can use to engage with referral partners, enhance the point of sale experience, and shorten the closing process.

You can use over 80 third-party integrations to introduce new functionalities into your digital experience without upending existing workflows. For example, financial institutions enjoy using SimpleNexus because of how easy it is to sync processing and underwriting activities with loan origination software (LOS).

The platform serves established businesses like the Texas Tech Credit Union (TTCU), which serves more than 25,000 members. A TTCU applications manager tells SimpleNexus in a case study that 90 percent of mortgage channels come through channels other than their physical branches. They wanted a digital tool to centralize every step of the loan process so they could save time and reduce paperwork for staff and customers.

SimpleNexus customers and their end users enjoy having a single login to access an entire suite of popular features like: 

  • Loan applications
  • Mortgage calculators
  • Customizable branding
  • Document uploads
  • Notifications and alerts
  • Loan management dashboard
  • e-Signatures
  • Third-party integrations
Sageworks

2. Sageworks Lending

  • Review Rating: 4.9 / 5
  • Pricing: N/A

Sageworks Lending is a lending software best for growing financial institutions that want to use automation for scaling their loan portfolio. You can use the platform to accelerate loan processing by centralizing services for multiple loan types within a single web app, so you’re not working with fragmented systems to juggle business and personal loans. According to customers, what sets this solution apart from other feature-rich LOS is its shorter deployment cycle that lets teams get up and running with it quickly.

Smaller banks and credit unions, like the 121 Financial Credit Union,  find the most value in how the platform speeds up loan applications by helping customers avoid filling in information their institution already has saved in the system.

Like many LOS, a big motivator for customers is integration capabilities. Sageworks Lending can seamlessly communicate with core systems so members can verify existing information with a click of a button and complete their loan application. You can also use a RESTful API to add to their native features, which include:

  • Loan applications
  • Pre-built templates and workflows
  • Client portal
  • Document library
  • Notifications and alerts
  • Automated loan decisions
Salesforce Finance Services Cloud

3. Salesforce Finance Services Cloud

  • Review Rating: 4.2 / 5
  • Pricing: N/A

Financial services companies use Salesforce Finance Services Cloud because of its strengths in collecting and storing client and prospect data from different conversations and touch points. You can use the platform’s features to automate the entire lending lifecycle and track key information every step of the way.

Like all Salesforce products, you can use the platform to build detailed reports that help you analyze different layers of each relationship and easily spot areas for improvement. On top of that, you can benefit from AI-suggested predictions, scoring, and routing features.

From small institutions to large enterprise corporations, the platform helps customers improve the borrower experience by putting process transparency first. Here are other key features that can help you digitize your operations:

  • Mortgage data models 
  • Document tracking and approvals
  • Self-service options for borrowers
  • Milestone tracker 
  • Guided loan applications
  • Trigger notifications and alerts
  • No code and low code automation
Floify

4. Floify

  • Rating: 4.8 / 5
  • Pricing: Starts at $70 a month

Loan officers say Floify stands out with its modern and user-friendly system for borrowers. The platform puts clear and accessible design first, equipping its online apps with multilingual options and using guidelines approved by the Americans with Disabilities Act.

Floify prioritizes good design with its thorough optimizations for mobile web browsers and iOS and Android apps. Their digital loan application process is just as responsive on mobile, so borrowers can follow along with application questions clearly without missing any important information.

The platform’s most popular functionalities are its document collection workflows and interview-style loan application questions. Loan offices can easily jump in and out of Floify to add documents, approve documents, and communicate clearly with borrowers within the platform about why certain documents were rejected.

Floify customers include locally-owned mortgage brokers like Riverbank Finance and My Mortage. These businesses use the platform to provide borrowers with a clean and professional online app experience while saving their staff’s time collecting documents and managing mortgage disclosures. These are some of the features financial institutions find the most success with:

  • Loan applications
  • Client portal
  • Document management 
  • E-signatures
  • Customizable branding
  • Mobile app experience
  • Alerts and notifications
  • API integrations
  • Disclosure desk solution
Sofi

5. Sofi

  • Rating: 4.9 / 5
  • Pricing: N/A

Unlike other loan software on this list, Sofi is a financial technology company that creates member-driven loan products. Built to help its members manage their financial future, it’s an all-in-one finance platform with features ranging from loan refinancing to banking and investing. 

You can use a single app to access all these financial services — including its extensive suite of loan products. Loan management is done completely online. With the app, members can get pre-qualified for loans, submit applications, and get brand-new loans that meet their goals.

From students to first-time homebuyers, borrowers use Sofi because their products offer competitive rates, low down payment options, member perks, and access to multi-channel customer support. Other features that help Sofi stand out in the market are:

  • 24/7 account monitoring
  • Financial planning
  • Member rate discounts
  • Unemployment Protection Program
  • Reward points
Bryt

6. Bryt

  • Rating: 4.8 / 5
  • Pricing: Starts at $29 a month

Bryt is a loan management software designed to give lenders unconventional flexibility and transparency, such as not having customers commit to contracts and displaying upfront pricing and implementation times for each subscription plan.

Customers from small and growing businesses find Bryt a suitable platform because of its ease of implementation, helpful onboarding process, and ability to communicate with support teams for platform customizations. You can get Bryt’s system up and running yourself in as little as 30 minutes. 

The software is designed with a modular concept. This allows lenders to build a solution by selecting the components that will add the most value to their business. Each subscription plan has a range of modules, but you can access more modules for an additional $30 a month each. Here are some key features available on Bryt:

  • Custom document templates
  • Private-labeled client portal
  • Built-in payment collection 
  • Document management
  • Asset and insurance tracking
  • Compliance management 
  • API integrations
turnkey

7. TurnKey Lender

  • Rating: 4.7 / 5
  • Pricing: N/A

TurnKey Lender is an end-to-end loan management platform powered by AI. It’s best for companies who want to automate and accelerate decision-making throughout the lending process, like credit scoring, risk assessments, loan collection strategies, and more. You can use these intelligent tools to design robust workflows across their loan origination, loan servicing, and debt collection solutions.

The platform is used to support financial products and services by established corporations across the globe, like H&R Block and AirAsia. These customers use Turnkey Lender’s AI engine to seamlessly roll out digital transformation efforts at scale through automated application collection, processing, and tracking.

Financial institutions enjoy how flexible of a solution it is for personalizing the loan application process and loan offers. Like Bryt, you can use different modules and 75+ pre-built integrations to enhance native solutions with advanced customer management tools. According to customers, their most valuable features are: 

  • AI-powered decision-making
  • Client portal
  • Bulk data import and export 
  • Document management
  • Loan application workflows 
  • Alerts and notifications
  • API integrations
loansifter

8. LoanSifter

  • Rating: 4.5 / 5
  • Pricing: Starts at $79 a month

LoanSifter is recognized by mortgage brokers as a reliable solution to search and compare mortgage rates by hundreds of investors. This platform is often used by small to mid-market businesses who want to win customer relationships by quickly providing clients with the best pricing options. 

Customers can use LoanSifter’s extensive search capabilities to create new pricing quotes for clients in different scenarios. A typical workflow without the platform would include mortgage brokers using rate sheets to calculate the best pricing manually. This time-consuming process becomes even more inefficient when customers are on the line and want to know pricing options right away. 

Beyond the agility to edit searches and pull up pricing immediately, mortgage brokers also find LoanSifter valuable because the search results include important information like a lender’s product matrix and guidelines. Here are all of the platform’s key features:

  • Access to rates from over 100 investors 
  • Side-by-side price comparisons
  • Configurable searches 
  • Client data management
  • Integrations with LOS 
  • Custom API integrations
Finflux

9. Finflux

  • Rating: 4.7 /5
  • Pricing: N/A

Finflux is a cloud-based platform that serves more than four million borrowers. It’s built with an emphasis on user experience, giving lenders the flexibility to personalize lending products for their targeted customer base.

Financial institutions can plug and play different integrations into the platform’s solution architecture to build reporting dashboards, set up a co-lending model and offer different repayment options. 

The platform sets itself apart with its mobile application that gives borrowers a comprehensive dashboard to view and manage their loans. Customers can use the app to upload documents, have a comprehensive view of loan pipelines, send reminders for payments and more. The platform’s most popular features are: 

  • Flexible loan products
  • Reporting dashboard
  • API integrations
  • Automated workflows and events
  • Notifications and alerts
  • Borrower dashboard with loan information
How Whatfix Enhances Digital Loan Products

Loan products are feature-rich. They can present unfamiliar loan officers and borrowers with a ton of information that can be easy to miss without the right guidance.

Whatfix lets you build engaging customer and employee onboarding and adoption workflows that include in-app content, self-service support channels, and pop-ups. You can use behavioral analytics to nudge your audience with the right next steps and empower them with information at the most critical points of their user journey.

Learn more about how Whatfix can support your digital banking transformation and loan software implementation today.

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