As companies grow, they often tack on various softwares tools to meet an immediate operational need. This leaves lenders with multiple systems, requiring intense reconciliations to manage lending portfolios like those for floor plans.

Archaic Tech Stifles Growth

Outdated architecture can stifle a bank’s ability to scale its operations as the focus is on supporting existing processes. What starts as a quick fix can often become detrimental to day-to-day operations over time.

Fragmented systems that do not talk to each other opens up significant risk to a lender. There can be duplicated or incorrect data that leads to risk and a lack of transparency into a situation.

Employees may find it difficult to understand the data, or it may undermine client trust in the lender. Analysts may also spend hours of time on workarounds and manual processes when their efforts would be more valuable elsewhere.

The Right Software is a Force Multiplier

Banks should focus on transforming their infrastructures to build efficiency, particularly in floor plan lending processes. Floor plan lending is a complex product that requires multiple data sources - whether that be titles, audits, or payments. The multi-party nature of the business leaves banks open to having to manage data flow from a variety of sources.

By consolidating systems and aggregating data into unified dashboards, banks can improve their day-to-day efficiency in managing floor plan lending. Analysts can focus less on burdensome data cleaning exercises and instead focus on growing their community relationships with bank clients. Banks can save on operational costs and potentially cut unnecessary, underperforming systems that no longer serve them. Customers can also receive information they feel is accurate more quickly, enhancing their experience and trust in the bank.

Lenders should work with their IT department to identify the key pain points and milestones they are looking to achieve. They should evaluate the current scope of systems being used to manage floor plan lending and consider where bottlenecks are occurring. There are a handful of third party vendors that may be able to help improve efficiency across their floor plan programs, including Vero Technologies. We have designed VeroOS to eliminate the need for multiple systems and provide a holistic approach to a bank in managing the entire scope of floor planning.

If you have a portfolio and are looking to upgrade how you operate, consider contacting our team of experts today to learn more about the best technology solutions for your inventory financing needs. We are proud to work with Sopra Banking Software to offer a comprehensive, trustworthy, and user-friendly loan management system.