December 29, 2022

How to Digitize Loan Processes

As technology advances, lenders are increasingly looking for ways to make their loan processes more efficient and reduce manual labor. By digitizing loan processes, businesses can streamline the process of onboarding customers and making loans, while increasing accuracy and reducing costs.

In this post, we'll discuss why businesses should digitize lending processes and provide a step-by-step guide on how to do so.

Process Mapping

The first step to digitizing loan processes is process mapping. Businesses need to understand each stage of the loan process in order to determine which tasks can be automated and which require human engagement. Outline the details of each specific process within the lending workflow, from start to finish. Include all steps in the process, who will be responsible for them, and what information needs to be collected or generated at each step. The purpose of this is to clearly define the loan process from beginning to end so that it can be easily understood by everyone involved. This will also help identify potential areas of improvement or automation opportunities that may exist within the existing loan processes.  


Once a process map has been created, it's time to configure your loan origination system (LOS). An LOS is a software system used by financial institutions to manage customer data and automate certain aspects of the lending process. By properly configuring your LOS you can ensure that customer data is collected correctly and quickly; ultimately reducing manual entry errors while improving efficiency and accuracy throughout your organization’s entire loan origination lifecycle.

Pre-Qualification & Intake Document Collection

Once your LOS is configured correctly it's time to focus on pre-qualifying customers for loans as well as collecting any necessary intake documents, such as bank statements or tax returns. This can be done by leveraging Moxo's Client Interaction Workspaces. Moxo enables you to structure customer projects by blending automation with human engagement so that you can quickly move through the pre-qualification stage as efficiently as possible. Securely collect customer paperwork with ease while ensuring compliance with all applicable laws and regulations.

Underwriting & Decisioning

Once all necessary information has been gathered it’s time for underwriting and decisioning on whether or not the customer should receive a loan offer. Leveraging Moxo’s interaction workflows allows lenders to provide service to clients, and quickly track the status of thousands of applicants, while  simultaneously while establishing audit trails for compliance purposes – drastically reducing processing times while increasing accuracy.

Tracking & Reporting

The final step in digitizing your lending processes is tracking & reporting on how successful your efforts have been thus far. By leveraging Moxo, you can gain visibility into both past performance metrics as well as future trends which will give you insights into where potential improvements could be made.

Benefits of Moxo's Customer Interaction Workspaces

Moxo provides customer interaction workspaces that help streamline lending workflows across client lifecycles – from onboarding, servicing, and exception handling. These workspaces bring structure to client projects by blending automation with human engagement. Moxo makes it easier for customers by providing easy access to their client service team and the documents needed during various stages of the lending process – reducing paperwork time significantly while improving accuracy and transparency in decision making. Simultaneously, business stakeholders access to real-time performance data - allowing them to make informed decisions quickly and efficiently while mitigating risk. Additionally,

Digitizing loan processes can help businesses improve efficiency, reduce manual labor and costs, increase accuracy, and comply with applicable regulations. By understanding each stage of the process, configuring an appropriate loan origination system, streamlining pre-qualification and KYC, managing underwriting decisioning capabilities, tracking progress throughout each stage of completion; you can optimize your business’s workflow significantly with minimal effort on your part. With Moxo, lenders can streamline processes from onboarding through servicing & exception handling. Moxo makes it easier for customers by providing easy access to their client service team and the documents needed during various stages of the lending process – reducing paperwork time significantly while improving accuracy and transparency in decision making.

About Moxo
Control the chaos of managing client business with Moxo. Streamline external projects with digital interaction workflows  - from account acquisition, to onboarding, and servicing. Coordinate with customers, vendors, and partners to achieve joint deliverables, track milestones, exchange documents, gather approvals and more. Our team has a rich history of pioneering in the engagement space: Moxo’s co-founder and CEO, Subrah Iyar, was the co-founder and CEO of Webex, and Moxo’s co-founder and CTO, Stanley Huang, held senior engineering management positions at Cisco Systems and WebEx.