4 Ways Technology Adoption Improves Your Bottom Line
Many lenders understand the importance of modernizing their construction and renovation portfolios. Those that do not are exposed to risk and decreased revenue opportunities. Adopting a digital tool to help guide your processes and improve your workflows will not only enhance your customers’ experience, but will also help you increase your profitability in the long run. Here are a few ways that utilizing Built Construction Loan Administration can help.
1. Improving Visibility and Risk Management
Visibility into the real-time status of loans to mitigate risk is paramount to the success of your bottom line—and technology helps increase visibility for all parties involved. While outdated technology makes data entry heavy for construction loans, new technology reduces the need for you to do it manually. With automated integration, you only have to enter data on one of your systems. Built CLA will then transfer the data to other platforms you use, like Jack Henry or Black Knight—reducing the need to enter the same info multiple times. Built can also automatically generate analysis and reports. Instead of spending days or weeks on analytical reports, this technology can create reports for you in minutes. This can reduce your administrative costs. And, it can help you make smarter decisions going forward because you consistently have access to real-time data and insights.
Built CLA also can automatically alert you if loans aren’t progressing as scheduled. That way, you can catch problems before they completely derail the project. Then, you can ensure that your construction loans are profitable–improving the revenue from your construction lending. Using new technology can also help you be prepared for audits. With automatic record-keeping, you don’t have to worry about filing and saving every document or waste hours tracking down needed documentation. Instead, everything you do in Built is automatically saved and organized by loan.
2. Increasing Transparency and Communication
Modern construction loan management technology has also focused on increasing transparency and making communication easier. Built increases transparency by centralizing everything on one platform that’s visible to everyone. Rather than having information siloed in spreadsheets, inboxes, or filing cabinets, Built CLA collects everything in one collaborative platform so that you, your team, and your customers can easily track loan progress—without countless calls or emails. You can make sure every loan is on track and your policies and procedures are being followed, which helps minimize risk.
This transparency also improves the customer experience. Technology allows customers to check the progress of their construction loan from a mobile app. The ease of use with an often complicated and frustrating process makes the experience much more enjoyable. When it’s easy to work with you, your customers will be more likely to convert to a permanent loan and even refer new business.
Built can also make it easier to communicate. Instead of relying on a variety of channels—like email or phone calls—you can communicate with everyone with one secure method. Digital communication on a single platform like Built helps you lower your risk of a data breach and can help your team communicate more efficiently, freeing them up to focus on generating more profit.
3. Simplifying the Construction Loan Process
While the work for most loan types ends at closing, for construction loans, the work is just beginning. Managing draws, inspections, timelines, and more makes construction lending extremely time-consuming. Technology can help speed up the draw process. Instead of contractors waiting days or weeks for funds, Built CLA can help you disburse funds faster than ever. With an all-in-one platform, contractors can submit draw requests in the same place inspectors schedule inspections. And, from the same platform, you can approve the request. Not having to wait weeks to schedule an inspection and approve draw requests can help you disburse funds in days, rather than weeks. When contractors get funds promptly, you’ll be able to retain their business, reducing risk for you in the long run.
With automated workflows, Built CLA can also simplify the administration of these loans. Your team no longer has to closely watch every loan to catch problems before they happen. Instead, the platform can automatically alert you before problems happen so that you can have more profitable loans. Currently, Built is increasing visibility, reducing risk, improving transparency and communication, and simplifying the loan administration process.
4. Increasing Efficiency
Built CLA can help improve efficiency by reducing the administration required for each loan. Technology can help your administrative team communicate quickly, share files in seconds, and spend much less time on manual data entry. Implementing the Built has proven to help construction lenders cut administrative costs by 75%.
Reducing administrative tasks can also help you retain employees. When your team doesn’t have to input data into a spreadsheet all day, they’re able to do more productive tasks, like creating analytics reports. Happier employees will stay with you longer, reducing the amount of training you have to do. Increasing efficiency with technology can also help you increase your loan volume. When you can streamline processes and documentation with tech, you can spend less time on each loan.
By focusing on improving efficiency, construction lending technology will help those lenders that adopt it thrive.
Technology allows lenders to dramatically increase efficiency and edge out competitors. During global economic uncertainty, it’s more important than ever before to manage costs and ensure the best customer experience. As competition and economic pressures increase, construction lending administration will require a greater level of scrutiny. Real-time, remote access to shared and reliable information through Built CLA improves your team’s efficiency.
Built provides a modern construction loan administration solution that helps you mitigate risk, maximize productivity, and create a great customer experience. Want to stay ahead of the competition? Discover all of the ways that our Construction Loan Administration platform helps you communicate critical loan information in one place, in real time.