Lending Software Development Services
ScienceSoft applies 18 years of experience in creating software for financial services to help lending companies build reliable loan management solutions.
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Lending software development services are a way for credit providers to get efficient and secure software tailored to their specific workflows across loan management, risk assessment, debt collection, customer service, and more.
ScienceSoft offers full-cycle commercial and consumer lending software development services to create robust solutions that help innovate and improve lending processes.
Lending Software Use Cases ScienceSoft Specializes In
Consumer lending
- Instant processing of consumer loan applications.
- Fast, analytics-based loan decision-making.
- Facilitated payment collection and debt recovery enabled by robust process automation.
- Convenient omnichannel communications with borrowers.
Commercial lending
- Streamlined origination and servicing of various business loans, including syndicated and multi-entity loans.
- Intelligent assessment of business credit risks.
- Full traceability of commercial lending operations.
- Simplified compliance with the required regulations.
- Fast generation, secure sharing, and scalable storage of large-volume mortgage documents.
- Automated calculation of mortgage-associated fees.
- Streamlined collateral management, mortgage close, servicing, and foreclosure processes.
- Automated mortgage loan trading.
Alternative lending
- Highly accessible and cost-effective peer-to-peer loans with no middleman services.
- Fast access to funds for borrowers and attractive investment opportunities for lenders.
- Automated microlending and microfinance.
- Support for DeFi loans to reach the global audience, ensure lending transparency, and simplify repayments.
The Financial Times Includes ScienceSoft USA Corporation in the List of the Americas’ Fastest-Growing Companies 2023
For the second year in a row, ScienceSoft USA Corporation ranks among 500 American companies with the highest revenue growth. This achievement is the result of our unfailing commitment to provide high-quality IT services and create best-value solutions that meet and even exceed our clients’ expectations.
Lending Solutions ScienceSoft Delivers
We provide full-cycle consulting and development services to help companies build single-purpose lending solutions or implement full-featured loan management systems to drive high ROI across the entire lending process.
Loan origination software
- Automated borrower onboarding and pre-qualification.
- RPA- and AI-based processing of borrowers’ paper and digital documents.
- AI-powered assessment of borrower credit risks.
- Configurable loan terms (max amount, duration, interest rate, collateral type, etc.) for various borrower segments.
- Intelligent recommendations on loan approval or decline.
- Automated generation of loan agreements.
- E-signing of the lending documents.
- Automated transfer of the approved funds to borrowers.
Value: over 2–25x faster loan origination, 15–20% increase in the loan origination volume with no additional staff, 20% decrease in operational costs, improved accuracy of loan-related decisions.
Loan servicing software
- Template-based creation of loan amortization schedules.
- Automated calculation of monthly principal and interest amounts and other loan-associated fees.
- Scheduled generation of invoices on due loan repayments and sending them to borrowers.
- Real-time tracking of loan repayments by status (received, due, past due).
- AI-supported assessment of loan portfolio risks.
- Automated workflows for loan extension, restructuring, refactoring, etc., upon the request from a borrower.
- Automated loan reporting to the required regulators in the compliant format (e.g., Metro2 format).
Value: Up to 300% increase in the productivity of loan servicing teams, 30%+ shorter loan cycle, minimized credit risks, compliant loan reporting.
Debt collection software
- AI-based suggestions on the optimal collection strategies for particular debtors and debtor segments.
- Scheduled and ad hoc omnichannel reminders on due loan repayments.
- Rule-based assignment of debt collection tasks to the debt recovery team members.
- Monitoring the debt collectors’ performance and debt recovery progress in real time.
- Forecasting cash inflow and delinquency rate based on the analysis of borrower performance.
- (for mortgage providers) Automated forbearance and foreclosure workflows in case of a mortgagee’s inability to repay debts for a particular period.
Value: Up to 65% reduction in debt collection costs, 8x faster debt collection processes, 40%+ cut in DSO, 20% decrease in bad debt.
Loan pricing software
- Scenario modeling and what-if analysis for various loan pricing strategies.
- Real-time monitoring of competitors’ loan prices across relevant public sources.
- AI-powered analysis and optimization of loan prices.
- Automated calculation of prices for various types of loans based on a user-defined pricing strategy.
- User-defined rules for loan price segmentation.
- Scheduled and ad hoc updates of loan prices across the customer-facing platforms.
Value: 1–8% increase in profitability, more than 3x faster loan repricing, enhanced visibility of the loan price performance.
Peer-to-peer lending software
- Criteria-based search of the best-fitting loan offerings for borrowers and investment opportunities for lenders.
- A comprehensive loan calculator for borrowers.
- Automated loan underwriting and servicing processes.
- Instant processing of loan-related payments, including payments for the platform services.
- End-to-end traceability of P2P lending activities.
- Trend-based forecasting of P2P lending demand and financial gains from the platform operations.
- (for blockchain-based P2P lending software) Immutable record and full traceability of lending transactions.
Value: An opportunity for P2P lending companies to achieve prompt and high ROI with a highly demanded lending solution.
Customer-facing lending apps
- Automated generation and submission of loan applications.
- Automated loan repayments via the selected payment method.
- End-to-end audit trail of the user account activities.
- Geography-based KYC/AML verification for the app users.
- Multi-factor authentication, including biometric authentication (e.g., facial or fingerprint recognition).
- AI-powered fraud detection.
- Instant messaging.
- An AI-powered chatbot to help users solve technical, transactional, and security issues.
Value: Increased customer satisfaction and the opportunity to expand the client base, which results in higher financial gains from lending activities.
AI-powered lending software proved to bring up to 70% reduction in operational expenses, an 80%+ improvement in fraud detection and credit risk assessment accuracy, and up to 35% increase in loan origination volume. To help our customers reap these amazing benefits, we augment lending solutions with advanced analytics, AI-based assistants, natural language processing, generative AI, image analysis capabilities, and other AI-supported technologies.
Lending Software Integrations ScienceSoft Helps Establish
Corporate systems
- CRM.
- Accounting software.
- Customer-facing apps (e.g., a customer portal, a company website).
- A BI solution.
- Case-specific systems, such as core banking software.
External data sources
- Credit rating platforms of the selected credit bureaus (e.g., Experian, Equifax, or TransUnion for the US).
- Bank accounts.
- Financial data marketplaces.
Third-party services
- Payment gateways of banks or independent payment service providers (e.g., PayPal, Stripe).
- Messaging services.
- Authentication services.
- Reporting and productivity tools.
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NB! We can also develop ready-to-use APIs to enable seamless integration of lending software products with the internal systems of their end users. |
Why Choose ScienceSoft as Your Technology Partner
- Since 2005 in software development for the financial services industry.
- Practice-proven expertise in designing and building lending software with complex business logic that smoothly handles even the most complicated, highly-specific lending operations and ensures 100% accuracy of loan-related calculations.
- IT consultants and project managers with experience in long-term digitalization projects for Fortune 500 companies.
- In-house compliance experts with 5–20 years of experience to guarantee lending software compliance with CCPA, CECL, CCAR, FCRA, FCBA, ECOA, FDCPA, GDPR, other required global and region-specific regulations.
- Proficiency in advanced techs: AI, big data, blockchain.
- Since 2003 in cybersecurity to ensure world-class protection of lending software.
- Quality-first approach based on a mature ISO 9001-certified quality management system.
- Robust security management supported by ISO 27001 certification.
Explore ScienceSoft’s Success Stories
Development of Custom Loan Management Software
- Automation of loan underwriting, servicing, reporting, and debt collection workflows for a financial company with 50+ US offices.
- Smooth integration with the required corporate and third-party systems.
- Convenient UX and UI for the company’s employees and clients.
- Advanced security of sensitive data.
Customer’s benefit: Optimized project budget, streamlined lending processes.
Development of Consumer Loan Management Software
- Loan origination, servicing, and analytics tools for the lending team.
- A web app for borrowers to access multiple credit accounts in different banks and conveniently create loan applications.
- Scalable storage for lending-related data and documents.
Customer’s benefit: Increased employee productivity, enhanced transparency of lending operations, improved borrower experience.
Mobile Lending App Development
- Building a cross-platform mobile lending application for the clients of a P2P lending company.
- Implementing self-service functionality for the app’s users to navigate the banks’ loan offerings, automatically generate loan applications, and quickly contact customer support.
Customer’s benefit: Optimized project costs, increased client satisfaction, the opportunity to extend the client base.
Development of Credit Analysis Software
- Development of a full-featured credit analysis system in 7 months.
- Functionality for the real-time verification of borrower data and documents.
- Integration with the internet banking systems of multiple banks in different countries.
Customer’s benefit: Fast product launch, facilitated software maintenance and support.
Lending Software Development Process
Lending software development covers a range of important steps aimed to establish smooth and predictable project flow, ensure excellent software quality, and prevent any potential risks.
At ScienceSoft, lending app development process usually looks as follows:
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In-depth analysis of a customer's business and end user needs, eliciting requirements for lending software (incl. regulatory compliance requirements).
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Project planning: deliverables, success measures, scope of work, team composition, cost and time estimates, etc.
4
Lending software development: setting up and configuring IT automation environment, back-end and API coding, creating role-specific user interfaces, implementing data storage.
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(optional) Designing, training, and tuning ML models for lending data analytics.
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Quality assurance in parallel with coding.
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Establishing integrations with the required internal and third-party systems, running integration testing.
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Configuring lending solution's infrastructure, setting data backup and recovery procedures, establishing app and network security mechanisms, and deploying software to the production environment.
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Delivering comprehensive lending software documentation. Drawing user training materials, conducting user training in a preferred format, if required.
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(optional) Continuous support and evolution of lending software.
Get a Cost Estimate for Your Lending Software
Want to know how much your custom lending solution will cost? Answer a few questions about your project requirements and get a free cost estimate.
Our team is on it!
ScienceSoft's experts will study your case and get back to you with an answer within 24 hours.
Technologies & Tools We Use
In our projects, we rely on the following reliable techs and tools to create top-quality consumer and commercial lending software.
Benefits of Lending Software Development with ScienceSoft
Optimal cooperation model
We can offer the cooperation model that suits you best: full outsourcing of lending software development, a dedicated team to take over a part of your development project, or team augmentation with our best talents.
We employ established practices of joint planning, decision-making, and problem-solving and maintain transparent, KPI-based collaboration to maximize the long-term value of our service. We are eager to invest in the resources and domain-specific expertise important for the project success.
We can provide an MVP of lending software in 3+ months and consistently grow it to a full-featured solution with major releases every 2–4 weeks. We guarantee a quick project start (1–2 weeks) and apply well-established Agile and DevOps practices to ensure fast and smooth implementation of your software.
Guaranteed compliance
We ensure compliance with AML/KYC regulations, CCPA, CECL, CCAR, FCRA, FCBA, ECOA, FDCPA, Basel III, the Dodd-Frank Act, GDPR and PSD2 (for the EU), and other relevant global and regional standards and regulations.
Focus on security
We implement intelligent fraud detection algorithms, multi-factor authentication, authorization controls for APIs, and other powerful cybersecurity mechanisms to ensure the protection of your lending solution and the sensitive data it stores.
Driving ROI with advanced techs
Having proficiency in cloud, AI, big data, blockchain, we are eager to share our expertise and assist in selecting and implementing cutting-edge technologies that can deliver additional value across your unique lending management processes.
Frequently Asked Questions about Lending Software Development
What loan types does lending software help automate?
Custom lending software helps automate all required types of commercial and consumer loans. Some examples are:
- Commercial loans: business lines of credit, term loans, invoice financing and factoring, merchant cash advances, SBA loans (for the US), and more.
- Personal loans: personal lines of credit, unsecured and secured loans for personal needs (e.g., education), Buy Now Pay Later loans, and more.
- Business and consumer mortgage loans.
- P2P crypto loans.
What is the difference between commercial lending and corporate lending?
Commercial lending refers to granting loans to businesses of various sizes and industries to support their operational needs and capital expenditures. Corporate lending is a subset of commercial lending that focuses on providing credit facilities to large enterprises. It typically deals with financing large-scale projects and involves large loan amounts and complex credit agreements.
What impacts lending software development cost and timelines?
Major factors that affect the budget and duration of lending software development are:
- The chosen sourcing model (full outsourcing, partial outsourcing, or all in-house).
- The scope and complexity of software features, including AI-powered functionality.
- Non-functional requirements: performance, scalability, availability, security, regulatory compliance.
- The number and complexity of integrations.
- Role-based requirements for UX and UI.
What is required from a client’s side?
The short answer is, your willingness to communicate openly and share your challenges and needs. We offer tailored collaboration models for various stages of a lending software development life cycle and welcome individually-paced communication forms to meet our clients’ individual expectations. Visit our dedicated page to learn about ScienceSoft’s mature approach to collaboration in IT projects.
Choose Your Service Option
ScienceSoft’s lending management software development services are customized to your business needs and can include:
Consulting on lending software implementation
We introduce the optimal feature set, architecture, and toolkit for your digital lending software and advise on the project cost optimization opportunities. You also get consulting on security and compliance and a detailed implementation plan to minimize project risks.
Lending product consulting
We define a unique selling proposition for your lending product and deliver a clear solution concept. You get convenient UX and sleek UI design to ensure high product value for end users and an interactive prototype to quickly test technical feasibility and usability of your lending software.
End-to-end lending software development
We promptly design and develop your lending software, run the necessary quality assurance procedures, and provide after-launch support. You benefit from the software's smooth integration with the required systems. Also, we can conduct user training in a convenient format.
Lending software modernization
We advance the functional and non-functional capabilities of your existing lending solution to help you generate more value with a legacy tool. Compared to software development from scratch, you get a modern lending solution faster and at a lower cost.