By this point, you know your business should be propelled by the need to get ahead, not just the need to keep up. For many lenders, this means integrating technology into your business’s operations. Using a CRM to unify your processes and data can help you achieve just that.
While the benefits of better data are clear, it is not uncommon for apprehension to sneak into the conversation. Especially when migrating from paper and spreadsheets, the task seems overwhelming to some lenders. If you fall into this group, fear not. There are steps that can make setting up Salesforce for lenders a smooth and easy process.
Even if you think you can hit the ground running, spending a few minutes to go through the tutorial is well worth the time. It provides surprisingly detailed insights on how to configure Salesforce to manage your deals and pipeline.
Another feature worth noting is Salesforce’s customizable alerts. You can choose alerts to notify your team when it’s time to take an action, like following up on a lead or sending out information. You can also toggle them on or off to determine who sees them or what information you want displayed.
There are also a plethora of apps that you can install to manage specific functions in Salesforce. Some organize and track deals for syndication and others provide detailed information to decide on applicant risk. Others integrate Salesforce with other programs your organization already uses.
While you can set up Salesforce to manage your lending, it never hurts to consult a professional to find out where you can benefit the most from using a CRM. If you want to find out who can best help your business, take these steps when finding a Salesforce consultant.
Following the vague terms of bill A10118A/S5470B, which would require New York lenders to provide certain uniform disclosures, it’s no surprise that industry leaders are reacting with frustration. Steve Denis, Executive Director of the Small Business Finance Association, remarked, “It’s actually shocking to me how tone deaf those who claim to represent our industry are when it comes to policy.
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The APR disclosure bill has so far been passed through New York State’s legislature, and if signed by Governor Cuomo, would mandate that lenders disclose terms such as their APR even if the funding itself does not involve one. A similar law in California and the confusion that followed its implementation left lenders seeking advice from equally baffled lawyers. The state itself failed to provide guidance on how to calculate the terms if the loan itself did not include them.
Without major problems regarding disclosure of these terms, the bill complicates lending in a time when small businesses are trying desperately to find options to remain open. Feedback from borrowers and a lack of complaints to regulators do not indicate that this bill will solve any major existing problems. Find out more about the bill here.
Changing times result in changing industries. With stiff competition among businesses, the new standards for success are being set by customer expectations. Industries from education to lending are learning fast that to stay in business, they must remain highly competitive and in-tune with their customers.
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J.D. Power’s 2020 U.S. Primary Mortgage Servicer Satisfaction Study announced this week that while inquiries from borrowers are rising given the current financial turmoil, the general sentiment regarding borrowing is sour. Customers are frustrated with long wait times on the phone, poor communication, and confusing website layouts. Ultimately, who they choose will be whoever provides them not only the best rates, but the best experience.
The report does, however, note that customers rated their general experiences with the industry higher than they did last year. This includes their overall experience as well as the financial aspects. Quicken Loans came in first among mortgage lenders for the seventh year straight, showing that alternative lenders have a competitive edge even in our current financial landscape.
With the economic downturn taking a toll on lenders and borrowers alike, more borrowers have turned to non-bank options for their funding. However, on the opposite side of this dilemma sits the federal agencies overseeing the activities of these lenders. The urgency to better regulate the industry has led to legislation that leaves lenders with unanswered questions.
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New York State’s new law affecting lenders, the Small Business Finance Disclosure Law, passed last week in a matter of several days. The law mandates that lenders disclose APR, among other uniform disclosures, on their contracts for commercial financing. It also puts New York’s Department of Financial Services in charge of overseeing these changes and implementing punishments for those found violating the law.
The issue comes down to this: Some of these requirements are simply not possible to fulfill. For instance, the section requiring disclosure of the APR applies even to contracts that are not for loans and have no set time-frame. How do you disclose an APR if there is none involved? Also, in the case of California (who passed a similar law), regulators could not come to an agreement on how to disclose, or even come up with an APR for contracts that do not inherently involve one.
While the law still hasn’t been formally signed by the governor, alternative lenders and MCA providers should consult with a lawyer to make sure they are as compliant as possible with the upcoming regulations. For now, businesses are hoping that the New York Department of Financial Services issues their own formula to calculate APR when the law is enacted.
Trade shows, weddings, vacations, family visits. Humans are social animals and it’s in our nature to stay connected. For hundreds of years, we were bound to paper mail at best. Then, air travel changed that all. But now with travel being risky (if even available), how are people adapting?
The first thing you could do is to look at the stock performance of the seven biggest airlines. Companies like Southwest, United, Delta, and Lufthansa saw between a -48% to nearly -79% change in total returns. The evidence is everywhere. Plane capacity is being cut to help keep a safe distance. Staff are getting laid off and even the executives have taken pay cuts.
Interestingly enough, our need to stay connected at a distance hasn’t changed. While air and other long-distance travel aren’t currently in the cards, people are arguably more connected than ever. School and work have come online, and so have our friendships.
While the seven biggest airlines saw their stocks take a nosedive, Zoom, the video conference giant, had its stock shoot higher than those seven companies combined. In May of this year, their market capitalization jumped to $48.8 billion. Especially with its new use in distance education, Zoom’s popularity suits the current social need.
That said, Zoom has seen its fair share of problems. Security issues and uninvited guests joining meetings raised some concerns early on. However Zoom manages these and its future road bumps will decide its future from 2021 on.
Airlines and software companies aren’t the only ones facing an unclear future. See how the lending market is managing the COVID-19 pandemic.
Both businesses and individuals have taken the COVID health emergency as an opportunity to bring their operations online. As the number of remote financial transactions grows, more and more companies are trying to capitalize on this trend.
First, how do we tell how secure a company’s software is? There are two metrics that measure this. The first is the average time it takes to detect a security breach and the second is the average time it takes to respond to the threat. The first is abbreviated as MTTD (mean time to detect) and the second as MTTR (mean time to respond).
While a trained staff must monitor for potential threats, the majority of these processes are monitored digitally. Programs scan for unusual activity and reduce the MTTD for the software. After, the time saved by automating the detection process can be used so the security team can quickly respond to and eliminate the threat.
Another measure a company can take to protect its app and is to focus on the security of its data. Encrypted communications protect financial information from third-parties and two-step verification can keep users’ account data private. That said, financial companies will need to go above and beyond in order to succeed as a record amount of transactions take place online.