Why a Monolithic Enterprise Solution Is the Right Way to Go for Your Lending Operation

Blog Post Digital Lending

The global digitalization is defined by the all-consuming drive to agility and quick solutions’ delivery. Companies recognize the need for wholesome automation for them to stay on the market, yet there’s still no definitive answer on whether it’s better to use monolithic or microservices architecture for a project. And the fact is that it depends.

Some businesses will do better with a bestiary of small services integrated between each other while some need a system that works as a single machine without delays and risks of losing data during upgrades. And since lending operations work with a wide array of sensitive information and clients expect the services to be quick and seamless, the choice is even more important for this kind of businesses.

The need for in-depth automation is long overdue for the vast majority of small to midsize lenders. To this day, thousands of lending operations rely on manual work and analysis which includes dozens of handoffs between departments and employees to approve a single loan. Some alternative lenders stick to their 20th-century workflows because they think that switching to an automated platform costs too much or they don’t fully trust the machines. While others are still very cautious with delegating risk evaluation, document processing, and loan decisioning to algorithms. But the truth is that in today’s technological environment deploying and using an advanced FinTech solution for lending, isn’t just an option but a must. Because if you want to provide credit at competitive prices and speed, you will have to outsource the majority of work to the machines.

So a lender is faced with a question. Do you go with an all-in-one solution to address all of your needs or pick different providers for each part of the process and integrate them all together?

Proprietary vs ready-made enterprise solution for lending

Lending is a complex process which requires a solution to address the needs connected to origination, underwriting, servicing, reporting, collection, regulatory compliance and the seamless integration between all those parts ensured by the system’s built-in automatic business logic.

Creating something of this scale in-house will require multiple teams with dozens of people. Software developers, business analysts, quality assurance engineers, managers, tech writers, and so on and so forth. And the kicker is that this work will never end because even if you manage to launch a flawless system at some point, it will need to be regularly updated, continuously maintained, and analyzed for ways to make it better. All this inevitably translates into additional interest percentages on the loans you issue, making you less attractive for borrowers.

But that’s not to say that you should keep the things the old way – powered by human analysis and manual handoffs. TurnKey Lender exists to address exactly that kind of needs. Having worked with financial businesses for decades, we know exactly the kind of functionality lending operation needs and how they want it to work. We made sure that the whole platform is fully customizable and you can adjust the business flows yourself within an intuitive drag-and-drop interface.

Why choose a monolithic solution

Monolithic architecture works best for specific business types which require extreme reliability and security. And in the context of lending, it’s also preferable to use a ready-made solution rather than an in-house creation.

Without a monolithic solution, one would need to find and put together separate pieces of software for origination, servicing, collection, reporting, etc. And once you have all the functionality required, you’d need to integrate all the Excel spreadsheets, third-party solutions, and proprietary tools to make sure they communicate with each other in a meaningful manner. And each time you update one thing, you’ll be running a risk of incompatibility which can render your whole system useless and your operation paralyzed.

At the same time, if you choose the right solution with a monolithic architecture, you get a wholesome system, the parts of which were made specifically to work with each other. This makes the whole platform more effective, efficient, and reliable. But let’s look at some specific benefits of using a turnkey monolithic system for your lending needs.

Centralized data storage

One of the major benefits of using a monolithic system like TurnKey Lender is the centralized data storage which allows you to always have quick and easy access to any data you may need. Here’s why it matters.

When it comes to lending, regulatory compliance continues to be a huge pain point for most businesses. To fight that, the system should prompt you to collect all the data that regulators in your jurisdiction expect to you to have and warn you about any suspicious and potentially fraudulent activities.

But even if your platform covers you there, it also needs to keep a proper track of all the history your business had with borrowers. You need to always be able to pull and present any kind of data to the regulator or an auditor quickly and in full. To do that, all the departments should have a centralized data storage, where any changes any of your employees make to a clients profile reflect across all the departments.

Easier deployment

Depending on your existing infrastructure, deploying TurnKey Lender’s lending platform which would automate the whole lending process for you can take as little as a day. Including all the integrations and the front offices both for employees and borrowers. Everything your business needs to sell credit products and work with them.

Put real simple, with a monolithic solution, you only have to deploy one thing, while with microservices you’d need to deploy them separately and multiply the risks of something breaking down.

Easy integration

The monolithic architecture allows software provider to build an integration layer. This makes it that much easier for your business to communicate with the required external databases like credit bureaus and government systems. Not to mention numerous other third-party products like payment processors you may need integrations with. An integration layer allows software to receive access to all relevant information centrally making sure you don’t have to worry about it.

Faster work and data communication between departments

When an origination officer approves a loan or sends it to an underwriter, the application should move between them within seconds. When a system is built of multiple uncoordinated components, it will inevitably take much longer to call up all the APIs and pull all the data required for each screen. This reflects on the efficiency of your employees and on the overall speed of operations.

And it’s not just about the speed at which your employees will get the information they need. It’s even more important to make sure the system works fast for your end-users because there’s nothing we hate more than a website or an app that works slowly.

Design and flows consistency

An important thing both for lending operation’s staff and for its clients is consistency across the whole lending automation platform. The business logic, design flows, and even color scheme should be logically connected not to cause any cognitive dissonances. This way you avoid confusion, minimize user errors, and simply give everyone a better experience.

Easier tracking and workflows

Since the majority of lending processes can already be automated, this frees up time and resources and simplifies workflows. Another advantage of automation is that anything can be tracked, logged and analyzed. So the lenders can monitor and optimize each activity, team structure, sub-process, and overall business performance.

Why choose TurnKey Lender as a monolithic enterprise solution for lenders

TurnKey Lender’s AI-driven platform offers a unique combination of modular structure yet wholesome monolithic nature. We’ve created a robust system to design, implement and effectively govern all the lending processes of a business within a single interface. The platform comes with a range of integration capabilities along with rich user interface and separate offices for all kinds of employees. For each jurisdiction, the team of TurnKey Lender puts together a local edition of the software to reflect the countries regulatory requirements and best practices.

Our team constantly works on improving the workflows and algorithms behind our system to make sure that lenders never have to worry about the platform their business runs on. We know how important it is that your lending automation software is powerful, flexible, scalable and secure. And we made it our mission to provide lenders worldwide with the best tools on the market to address all of their challenges.

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