Many internal loan review groups are increasingly doing more with the same or fewer resources. When such demand begins to seem impossibly heavy, tech-based solutions and upgrades can streamline processes and enhance the capabilities of review specialists.
Two options exist for upgrading or replacing a current loan portfolio analysis system:
Many banks explore proprietary, custom-built credit review software through in-house or third-party resources, but the potential flexibility of this solution can come with considerable costs or drawbacks.
On the surface, a completely customizable, in-house credit review software platform can have the benefit of providing exactly what your loan review group is looking for. But not every bank is equipped with the scope and resources to make this option work best in the long run.
Before proceeding with an in-house credit review software build project, consider these questions:
The build process will require internal resources, but standard operations must still be able to function effectively.
Developers can’t be expected to fulfill expectations if they don’t have a full, concrete vision of what you want.
Delays and setbacks are inevitable, so generally it’s best not to rely on best-case estimates.
Ideally, the solution could accommodate a potential increase in data and users, even on short notice.
Solutions continually evolve, and your system will need to stay up to date to prevent a repeat cycle of rebuilds and potential security flaws.
A specialized system requires specialized knowledge, and turnover might leave your bank without the expertise needed. Without this expertise, you might have to start from scratch or reach out to a third party, which means restarting the process.
In addition to exploring these questions, it’s important to accurately estimate the cost of a software build project. Many banks underestimate the true costs by assuming best-case scenarios and overlooking potential complications and hidden long-term costs. The costs of delays, scope creep, and future maintenance easily can cause a software build project to balloon far beyond its original budget.
Implementing a platform licensed from a third-party vendor can eliminate many of the concerns that accompany an in-house build, but it’s still important to clarify precisely what the credit review software can provide.
Questions to ask include:
Moving forward with a third-party platform can help keep expectations reasonable and overall costs more fixed compared to the uncertainties of a complex, custom software build project.
Our specialists bring deep industry experience to banks looking for comprehensive yet well-tailored portfolio analysis software solutions. We have designed a reliable, flexible, and heavily supported credit review platform, and we also use it ourselves.
We can have your team ready to go on the program within a day, eliminating painful implementation exercises. From there, industry loan review specialists will help you train your team on the credit review software and share valuable peer insights along the way.
See how Crowe Credit360 for Loan Review Departments can help your team save time and money.
