5 Servicing Software Options for Managing Complex Financial Portfolios
Managing a financial portfolio that is complex requires much more than just keeping track of balances and ensuring collection of payments. Lenders and financial institutions might have to keep track of several loan programs, repayment plans, borrower management, interest calculations, reporting, documentation, and delinquency, among other things.
Servicing software helps in automating all these functions and giving better visibility into the performance of the portfolio. Loan servicing software usually comes with various features like payments, borrower management, collections, reporting, compliance, and portfolio tracking, among others.
Here are five servicing software you might want to use while managing complex financial portfolios.
1. Bryt Software
Bryt Software is a loan servicing software platform built in the cloud that helps lenders automate and manage their loan operations. With a special emphasis on workflow configuration and portfolio visibility, Bryt is especially useful for businesses that work with several kinds of loans, loan programs, and servicing needs.
The Bryt loan tracking system provides a centralized view of loan activity, including borrower history, payment status, upcoming installments, and loan states. The platform also supports automated payment processing, interest accruals, late-fee calculations, notices, reporting, and document management. For organizations with more specialized requirements, Bryt offers some advanced features, such as escrows, ACH management, asset management, insurance tracking, portals for investors, multi-lenders, custom reports, credit reporting, and API availability.
Why use it: It's a good choice if your business needs custom loan servicing workflows.
2. The Nortridge Loan System
The Nortridge Loan System is designed for organizations having complicated loan portfolios and lending programs. The system provides configurable servicing processes, workflows, reports, and collections.
It becomes very helpful in situations when the standard servicing workflow is not enough, and the organization needs its software to be configurable to its business processes.
Why use it: Suitable for organizations which require configurable loan management and servicing system.
3. Microsoft Dynamics 365 Finance
Microsoft Dynamics 365 Finance is a comprehensive financial management system aimed at helping businesses handle their financial processes, reporting, budgeting, and overall business operations. Unlike Microsoft Money Management, which is limited to loan servicing, it could be a good choice for businesses interested in linking their financial portfolios with other accounting and operational tasks.
For businesses conducting complicated financial operations, its reporting features and financial management capabilities could allow more visibility into transactions and performance of the organization. It could also be a good choice for businesses that use the Microsoft ecosystem and require integration of financial management with their technological stack.
Reason to choose it: A good choice for businesses interested in using broader financial management capabilities along with portfolio management.
4. Salesforce Financial Services Cloud
Salesforce Financial Services Cloud is a CRM solution built specifically for the financial services industry that allows enterprises to centralize information related to customers, their interactions, workflows, and relationships. It is most beneficial when it comes to handling complex customer relationships, which are highly dependent on customer engagement and communication.
For portfolio teams, the capability of centralizing all information about the relationships, communications, activities, and accounts of the customers can complement specialized financial or servicing solutions. Also, Salesforce has the ability to provide automation and integration for customer-related processes.
Why choose it: An ideal choice for companies that emphasize customer relationship management, visibility of the customers, and workflow automation in their financial operations.
5. Margill Loan Manager
Margill Loan Manager is yet another choice for the needs of lenders or organizations that need software for managing loans, lines of credit, receivables, and leases. In current directories for software, their service capabilities and ability to manage loans, including collateral management, are emphasized.
If the organization has varied financial deals to manage, then this software might be beneficial since it supports more than just the conventional installments. It will make it worthwhile to look at as a possible software to use.
Why use it: Good choice if the organization manages loans along with other receivables or credit arrangements.
What to Look for in Financial Portfolio Servicing Software
There is no single best approach. It depends on the complexity of your portfolio and processes that need to be automated. First, make sure the following features are available:
Visibility of the portfolio: Can your team track balances, payments, defaults, and status of each loan from the dashboard?
Automation of payments: Can the system automate scheduled payments, payment allocation, fees, and various payment scenarios?
Flexibility: Can workflows and conditions of loans be configured based on product and lending program?
Reporting capabilities: Are there ready-made reports on your portfolio, finances, compliance, and operations?
Document management: Can you keep borrower documents, loan agreements, notes, and correspondence in one place?
Integrations: Is the platform compatible with accounting, payment, credit reporting, and other systems you have?
Scalability: Can the platform handle growing volume of loans, users, and lending programs?
Final Thoughts
A more complex financial portfolio requires servicing software that is capable of doing more than just managing payments. Automation, workflow, borrower information centralization, reporting, and portfolio monitoring can all help lenders run operations more effectively.
The five software solutions presented here present different solutions when it comes to loan servicing and portfolio management. If customizability and centralization of loan management are your key priorities, you may want to consider Bryt Software in addition to Nortridge, microsoft dynamics 365 Finance, Salesforce, and Margill.
It all depends on your portfolio size, type of loans, workflow, integrations, reporting needs, and customizability requirements.
Frequently Asked Questions
1. Financial portfolio servicing software: what is that?
Portfolio servicing software for lenders and financial institutions is a system to manage loans and other assets that were originated before. The list of its functions may contain payment tracking, calculation of interests, borrower management, delinquency management, reporting, document management and portfolio management.
2. Which features to look for when choosing portfolio servicing software?
It is important to pay attention to automated payments, flexible configuration of loans, portfolio dashboards, reporting and analytics, borrower management, document management, delinquency management, notifications, and integration with financial systems. If your portfolio is very complex, you should select a software that will be able to accommodate a variety of loan products and servicing needs.
3. What problems can portfolio servicing software solve?
Servicing software unifies loan and borrower information and automates all repetitive servicing processes. It gives your team access to information about payment activity, outstanding balance, delinquencies, performance of loans and other important metrics. Servicing software also enables to standardize workflows and reduce the amount of administrative work.
4. Is portfolio servicing software capable of supporting various kinds of loans?
Yes. Nowadays, there are many loan servicing systems that can accommodate several kinds of loan products with various rates of interest, frequency of payments, fees, amortization schedule, and repayment terms.
5. How can loan automation help you in your work?
Loan automation allows avoiding manual data entry, increases accuracy, makes the process quicker, and gives faster access to the data about a portfolio. Loan automation can help with allocating payments, notifying borrowers, charging late fees, generating reports, and controlling delinquencies, thus making it possible to spend more time on the tasks that require more
