Here’s How TurnKey Lender Helps You Save Operational Costs and Time (and Here’s How Much of Both)

Blog Post Digital Lending

Since entering the lending automation space in 2014, TurnKey Lender managed to become the industry standard by which the depth and quality of automation of a lending business can be measured. Some of the biggest benefits company’s clients boast include a significant portfolio growth, an increase in operational efficiency, and improvements in the clients’ lifetime value. And for the people who are still undecided as to which lending automation platform to choose, we’ve decided to take a closer look at the benefits businesses powered by TurnKey Lender reap.

But first, let’s look at who exactly needs our solutions. The short answer is any kind of business that would benefit from employing bank-grade software at a fraction of the price. You may run a peer-to-peer lending operation, a microloan business, or just a store that wants to add another revenue stream in form of in-house financing. Any business looking to sell credit products or services will have to run on some lending automation platform. And to make this business last, the software it runs on has to be good.

In recent years, the whole alternative lending industry has made a big leap to overcome the stigma of being associated solely with payday loans. For millions of businesses and individuals, that’s already a legit alternative to traditional banks who would not only deny them on the origination stage in most cases but also take days or weeks to deliver the bad news. Just to draw a comparison, the old-school banks offer an approval rating of 13%-20% while the alternative online loan providers are at 61%-64%.

The reason why alternative lenders are able to achieve these approval numbers isn’t due to the fact that they are less picky. Rather, it’s because the more agile operations are able to employ faster yet safer processes powered by advanced technologies like AI and Big Data backed with proprietary algorithms and custom selection criteria.

Arguably, alternative lending got so big in the recent years solely because the FinTech software providers like TurnKey Lender did a great job automating their business processes, reducing their operational costs, and letting them provide loans safer and at better rates. But the choice of the lending automation platform to power your alternative lending operation is critical to the success of the venture.

And despite all the marketing fluff and empty promises, very few lending automation platforms are actually good enough to save your business operational costs and time. And there are objective reasons for it, the main being that the lending process is just that complex. But worry not, TurnKey Lender’s market-leading solutions are here for you. So let’s dig into how much time and money we’re going to save you.

How TurnKey Lender saves you time and here’s how much

Minutes vs days for loan origination

One of the most complex and lengthy processes in lending used to be origination. With traditional banks, this part of the loan life cycle could take anywhere from several days to several weeks. And for a business or an individual looking to get money ASAP, this just isn’t good enough.

And the problem isn’t only with the old-school banks because many of the modern loan origination solutions inherited the outdated algorithms and manual processes from them, leaving alternative lenders with a workflow that requires a ton of loan officers’ time.

TurnKey Lender’s origination module uses advanced proprietary algorithms, self-learning AI and Big Data to make the origination process as fast and secure as it can possibly get. As a result, the risks can be evaluated by the systems and presented to the loan officer in 30 seconds after the application was submitted (the speed depends on how fast the credit bureau will automatically process data request) and the whole origination process can be boiled down to 9 minutes.

And whereas this is more relevant to increasing the speed of operation, we got to keep in mind that each hour of your employees is billable, so lenders also make big savings here in terms of the time required for analysis of each application. In addition, the algorithms will adjust to the particular clientele of each particular business. This means that over time the process will become even safer and possibly even faster. Especially if we consider the fact that some of the best engineers and business analysts on the market are constantly working on rolling out new updates.

Automated syncronized cabinets for each kind of officers

Lending is a complex business. No matter how much you automate it, there will always be a sizeable staff which will be dealing with numerous accounts and piles of documents. Documents which will need to be in perfect order if you want to:

  1. Steer away from troubles with regulating bodies;
  2. Keep track of all the KPIs;
  3. Be able to pull all and any info you need at any moment.

These problems are addressed in TurnKey Lender’s tool suite. Each member of your team gets a cozy workspace with virtually no learning curve in which they can and will keep the document flow neat. Within the system, you will have separate spaces for:

  • Origination officers
  • Underwriters
  • Collateral managers
  • Servicing team
  • Collection staff
  • People in charge of reporting
  • Not to mention separate cabinets for the borrowers and the investors (if you’re running a peer-to-peer lending operation).

In our most humble estimates, on average the time it takes lenders to run their whole lending process can be reduced up to five times after implementing TurnKey Lender’s AI-driven solutions.

How TurnKey Lender saves (or rather helps you make) money and here’s how much

Portfolio profitability

The metric lenders tend to pay most attention to, no matter be they bankers or alternative providers, is portfolio profitability. Due to the in-depth automation, simple customization of business processes, and meaningful use of AI and Big Data, TurnKey Lender help any type of business selling credit products increase portfolio profitability by up to two times.

Client lifetime value

In addition, according to recent studies, the retention of a client is up to 70% more likely than the acquisition of a new one. Due to the smooth user flows and in-depth automation allowing for better interest rates and less human error, end-users of the credit products have proven to stay more loyal to the alternative lenders using TurnKey Lender’s solutions.

The Probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is 5-20%.

(Source: Invespcro)

That said, TurnKey Lender improves the client lifetime value for lenders by up to 100%, making it easier to make numerous sales. And the credit here goes to user-friendly interfaces, the ease of use of the platform and the conditions at which lenders can now provide products and services and still work at a profit.

The intelligence of the software

The intelligence of the software your business runs on plays an instrumental role in onboarding new customers, retaining existing ones, and especially in making fewer mistakes during the origination and servicing processes.

The intelligence of the Turnkey Lender software

The undeniable rise in operational efficiency

All of the listed above leads to undeniable growth in operation efficiency, which in turn translates into time and money saved. In a survey we carried out for the inside purposes, clients saw their operational efficiency improve on average thrice compared to the numbers they saw before implementing the solution.

Why TurnKey Lender is the way to go when automating your lending business

TurnKey Lender provides businesses with an end-to-end AI-powered solution which addresses all of their needs:

  • Fast and safe credit decisioning with risk-based pricing which helps you improve portfolio risk profile and minimize write-offs.
  • The most technologically advanced platform for lenders on the market. The functionality covers even the more complex parts of the process like origination, servicing, collection, and reporting.
  • A wide array of built-in and possible integrations which would otherwise need to be added manually.
  • Not to mention that thanks to the bootstrapped nature of the company, TurnKey Lender’s tools are cheaper than the closest competitors. The company even offers a free trial to lenders, letting them start working for free and pay as they go.

Automate every step of your consumer or commercial lending process.
Book an intro call with TurnKey Lender today.