Modern lending: The case for fully integrated loan processing systems
Faster loans. Less paperwork. Better service.
For banks, fully integrated loan processing systems offer a promising path to competing in today’s digital-first lending environment.
It’s not surprising that 57% of community bankers say these systems are important or very important technology for their organization, according to the 2024 CSBS Annual Survey of Community Banks. Nearly two-thirds (65.6%) of community banks are planning to upgrade to integrated lending systems within the next five years.
But what do these sophisticated systems actually deliver? Are they worth the hefty upfront investment? And could service interruptions during implementation cancel out the long-term benefits?
This blog provides answers to these questions, along with a way forward that makes the first step to modernizing easier on everyone.
What is a fully integrated loan processing system?
A fully integrated loan processing system brings every stage of the loan lifecycle — origination, underwriting, closing, and servicing — into a single digital ecosystem. These platforms eliminate silos between departments, reduce delays and deliver a better lending experience to borrowers.
Even better, they can integrate with the third-party systems banks rely on every day, including:
- Credit bureaus
- Government agencies like USDA, Fannie Mae, and Freddie Mac
- Core banking platforms and CRMs
This level of integration improves reporting, strengthens compliance while making life easier for both staff and borrowers.
Top benefits for lenders
- Eliminates duplicate data entry
- Accelerated loan processing and approvals
- Includes built-in compliance tools and audit trails
- Supports scalable growth
- Enhances the borrower experience
- Strengthens your competitive position in the community
Top impediments for adopting integrated lending systems
Despite their benefits, updating to a fully integrated system is a big lift for community lenders. For some organizations, these barriers bring excessive cost and disruption that more than justify a delay in implementing this technology.
Common barriers include:
- Upfront licensing and integration costs
- Cybersecurity concerns
- Compatibility issues with legacy systems
- Having sufficient internal resources to implement technology
- Potential disruption and downtime during implementation
- Difficulty estimating ROI
Overhauling your entire tech stack is time-consuming, expensive and can temporarily disrupt internal workflows. Because of these obstacles, banks can remain stuck in the planning phase. But the good news, there are solutions that allow you to get started without the headaches and expense associated with integrated lending.
A smarter starting point: Integrate with ag lending
If your bank is exploring a fully integrated future, ag lending can be a smart place to start. Partner with Agri-Access for secondary lending, and our online platform equips you with the ability to test pilot the concept with a segment of your lending staff and customers.
At Agri-Access, our Lender Portal provides many of the same tools of a fully integrated system, but you won’t need a complete overhaul to get it up and running. With the Lender Portal, you can process ag loans from start to finish, get assistance from your dedicated relationship manager along with a digital resource library and serve your ag borrowers more quickly.
Benefits of the Lender Portal
- Designed for agriculture workflows
- Secure 24/7 access
- Ease of document management and rate locking
- Built in tracking post-closing
Best of all, the Lender Portal is easy to adopt. Once you establish the partnership, you can start using the Lender Portal for your next agriculture loan.
Modernize your ag lending services with Agri-Access
Updating your lending system is a big decision that takes foresight, capital and months of strategic planning. The good news is you don’t have to replace your entire system at once. With a partnership with Agri-Access, you can start the process of modernizing your lending services by starting with agriculture. You’ll not only better serve your customers with an outstanding lending experience, but you’ll gather the experiences and data to support your plans to scale from there.
Want to learn more? Schedule a quick meeting with a Relationship Manager to get a free demo of the Lender Portal.
