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The Benefits of Construction Loan Management Software for Banks

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What is Construction Loan Management Software?

Construction loan management software is a type of software that is used by banks or other financial institutions to manage their loans and keep track of all documents and transactions.

Construction loan management software can help keep a financial institution organized, streamlined, and prepared for anything, including audits.

This is not just a simple accounting program that tracks the finances. It is a very specific program designed specifically for lending institutions and their needs

The Basic Functionality of Construction Loan Management Software

Construction loan management software is used by banks to manage construction loans. The software helps the bank in managing the entire process of construction loans, from initiation to closing. 

The most important function of this software is that it helps in identifying potential risks and threats related to construction lending. With automatic notification and overfunding alerts, risk assessment and mitigation risk becomes effortless.

How Construction Loan Management Software Works to Increase Efficiency and Reduce Costs

Construction loan management software has given many banks an advantage over the last few years. By automating many aspects of the construction lending process, banks can save days compared to the manual process and can speed up cycle time.

Construction loan management software is a fast-track solution for banks that helps them manage their loans and project finance process from start to finish. This includes all the stages of approval, disbursement, inspections, and more. The software also provides detailed reports about the status of projects on a regular basis which helps in keeping track of payments and collections. Be ready for any meeting with customizable reporting at your fingertips. 

Construction loan management software is an effective tool that can be used by banks to reduce costs and increase efficiency levels.

How Does Construction Loan Management Software Help Banks?

Construction loan management software helps banks in several ways:

  • Increase Draw Interest Income
    • Construction loan management software helps you accelerate your cycle times, so you can fund draw requests days earlier than before. 
  • Increase Efficiency
    • By eliminating spreadsheets from the draw process, having automated calculations and digital approvals at your fingertips means your internal processes are efficient and streamlined. 
  • Mitigate Risk
    • Detailed audit trails help your financial institution to be ready for anything. Automatic alerts also make sure you catch any mistakes before they become issues.
  • Enhance the Borrower Experience
    • Banks love having the option of offering a mobile tool to borrowers, builders, and inspectors. This improves business relationships and satisfaction.
  • Timely Reporting
    • Many banks need specific data on their loan portfolio, and fast. With custom reporting, construction loan management software can help you get the information you need to interested parties with a click of a few buttons. No more scrambling to compile spreadsheets.

Reasons Why Banks Should Invest in Construction Loan Management Software

The software can help the banks by providing them with better insights into their construction portfolio, and it can also help them to understand their risk exposure.

Construction loan management software helps in improving bank efficiency and profitability. It also helps in achieving regulatory compliance and reducing risk.

Banks are increasingly investing in construction loan management software because they have seen the benefits of this investment. They have realized that it improves bank efficiency, reduces risks, and increases profitability.

How to Choose the Right Construction Loan Management Software for your Bank

To make sure that you are choosing the right Construction Loan Management Software for your bank, there are a few things you need to take into account. First, find out what kind of features the software has to offer and what its user interface is like – look for a user friendly product. 

Second, make sure that it’s compatible with your bank’s systems and processes. Construct goes live in one hour and fits nicely between many software and core systems that banks use today. The implementation process with Construct couldn’t be easier. 

Third, check how much customization and flexibility it offers and how much support is provided after purchase. BankLabs Construct provides training and support for all users, not just bank employees. That is essential.

How to Implement a Successful Construction Loan Management Strategy within your Bank

Construction loan management strategy can be a great way for your bank to maintain and grow its customer base. Is your bank looking to grow its construction lending portfolio? This is a great way to keep up with demand.

Successful construction loan management strategies are those that are in place before the need arises. It is important to have a financial growth strategy in place, which will help you maintain and grow your customer base and construction lending portfolio.

 

calculator and management

Construct and Construction Draw Software – How to Automate Loans

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What is Construction Draw Software?

Construction Draw Software is a construction management software that helps lenders and contractors to automate the whole construction loan management. It can be used to manage the procurement process, plan and track the project, generate reports, and much more.

Construction Draw Software can help you track your project and even speed up the process. This is done by generating reports on the status of your project, setting automatic alerts and notifications, and having access to your loan information securely, from anywhere.

What is a Draw Request?

A draw request normally consists of several sets of documents including budgets, receipts, and lien releases. These are submitted by the contractor or developer to the lending institution. Draw requests are common and normally set on a schedule. What makes the draw request process slow is the amount of back and forth communication it takes. More and more banks are turning to construction loan automation technology to speed up this slow process and get draw requests approved days earlier. Lenders also love having all documents in one place where all parties can see what has and hasn’t been submitted or requested. 

Construction Contractor’s Perspective on Draw Process

Construction contractors’ can find the draw tedious and time-consuming. The draw process is necessary for both the contractor and the lender. Most draw requests require several hours of work on behalf of the developer or contractor. Gathering all these documents, receipts, and lien releases and then sending them securely to the loan officer can be difficult and time consuming. Then imagine having to find that email or those documents later! 

Borrower satisfaction is one of the biggest benefits of using Construct Draw Software like Construct. Developers, Inspectors, and Borrowers can all submit draw request information to the lender securely and instantly, from anywhere, even from the construction site.

Loan Officer’s Perspective on Draw Process

The automated draw process is a boom for loan officers. It saves them time and effort, while also providing a more accurate and streamlined process. Having all loan and draw request information in one place, accessible from anywhere, even at home or on your phone, is a huge time savings. Not to mention, having custom reporting makes audits and reviews much easier. Lenders can even set up notifications or limits on draw requests so they will be notified as soon as a request is made.

Construction Draw Process managed by Construct

Construct is a construction loan management software that automates the construction draw process. It helps contractors and developers to manage their project budgets, track their expenses, submit draws quickly, and generate reports.

The software allows users to create new projects, add tasks, set up auto alerts, overfunding alerts, assign payments and generate reports. It also comes with an in-built reporting system that provides insights into the project progress at every stage of the process.

Optimize your construction draw process with automation

Construction loans are a complicated process, and it is crucial to have an efficient system in place. Construct can help lenders and banks minimize errors and control the loan process more efficiently.

The construction draw process can be managed more efficiently with automation. Imagine getting an alert that a project is overfunded, before it becomes a risk. Imagine being able to look at your entire construction loan portfolio in one place, and run reports on any aspect of every project. There are 160 banks today already using this software to do just that! 

Ditching Your Construction Loan Spreadsheet with Construct

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What is a Construction Loan Spreadsheet and Why Would You Want to Ditch it?

Construction loan spreadsheets are not only difficult to maintain but also time-consuming. With the help of construction loan automation software like Construct, you can ditch your spreadsheet, streamline your lending process, and get back to focusing on other business.

There are some drawbacks with the manual construction loan spreadsheet process that make it worth considering an upgrade to modern solutions like construction loan automation software.

Construction loan spreadsheets are not the most efficient way to track finances. This can lead to a lot of errors and costly mistakes being made. They also lack some critical features that make managing finances more difficult, such as custom reporting features and draw import features, which are critical for any construction lending institution. Construct, construction loan automation software has been developed to provide lenders with the tools they need to manage all of their loans portfolios efficiently.

How Do I Get Rid of My Construction Loan Spreadsheet?

The manual spreadsheet process that many banks use to track construction lending is slow, with back and forth emails, phone calls, and little to no visibility for some parties. There is now an easy way to get rid of your spreadsheet. Construct is a simple, yet powerful tool that will take care of all the paperwork for you, alert stakeholders when inspections and draws have been submitted, and provide banks with reports and visibility at their fingertips, from anywhere, even while on the construction site.

Four Signs Your Bank Has Outgrown Spreadsheets

  1. Reporting takes too much time to compile and presentations are delayed
    • With Construct, customized reporting is at your fingertips and easy to download and present quickly.
  2. Difficulty consolidating data from multiple lenders and divisions within your bank
    • Construction Loan Software allows all stakeholders to have access to one system.
  3. Errors from too many versions manually collected, prepared, and shared
    • Construct’s automatic calculations and overfunding alerts keep all stakeholders on the same page.
  4. Inability to collaborate yields inefficiency and limited visibility without your organization
    • Construct’s automatic notifications help lenders close faster, increasing staff efficiency and project time

Improve the Borrower Experience

Lenders today are not only looking for efficiency for themselves, they’re looking for ways to keep and attract their best customers. Improving the borrower experience is one of those key ways that banks are maintaining and expanding their lending network. Many borrowers have reported an increase in satisfaction after using construction automation software.

Having the ability to submit an inspection or progress report from the worksite helps borrowers and builders increase their own organization and efficiency. Automatic notifications decrease the number of emails and phone calls needed to keep up with a loan, freeing up more time for borrowers to complete other tasks. Borrowers also appreciate having the ability to check the status of requests from anywhere, on any device, and not having to wait for an email or call to be returned.

Increase Efficiency with Construct

Whether you’re an experienced lender with a huge construction portfolio or just starting to grow your construction lending portfolio, BankLabs has the tools you need to manage all types of loans. With Construct your process is streamlined and your capacity is increased with less manual work, taking days off of your cycle time and increasing your draw interest. Plus, our system will provide a higher level of service to your customers, increasing efficiency and providing a better customer experience.

Mitigate Risk with Construct

Real-time reporting, automatic alerts, and detailed audit trails keep financial institutions better informed and protected than the manual spreadsheet-based process. Spreadsheets can’t send you an alert when your loan is at risk. But Construct can! Get notices BEFORE there is a problem, instead of after.

Start Saving Money And Spend More Time Doing What Matters

Construction lending is complex, time-consuming, and costly. Our solution Construct solves these problems by providing a convenient and easy way to manage construction loans from the lender’s perspective. It eliminates the need for paperwork and manual processes involved in a construction loan, increases borrower satisfaction, and increases draw income but up to 15%. Saving time and money, and freely staff to focus on other internal needs. For many banks, this is a no brainer! 

shaking hands

Loan Participation Technology

By | Blog

How do Loan Participations Work?

In today’s financial climate, banks are looking for ways to reduce risk, diversify their portfolio, increase liquidity, and remain flexible and nimble. One of the growing ways to accomplish all of these advantages is to originate and participate in loans with other institutions. There are several reasons that banks buy and sell loans, and the process benefits both parties. 

Benefits of Loan Participations

A lender can benefit from loan participations in many ways. First, they can reduce and manage risk by working with other financial institutions to fund a loan. Second, they can diversify their portfolio by investing in different types of loans. Each bank must manage their balance sheet appropriately and most even have guidelines and limits they must abide by. 

Loan Participations are beneficial for both the originator and the participants in many of the same ways:

Benefits of Loan Participations for the Originators

Originators are often looking to retain key clients. By originating a loan and seeking participants, banks can retain those key clients by being able to take on a loan above their limit. This way your best customers do not turn to a competitor to fulfill their larger loans. Other benefits include:

  • Reducing concentration risk
  • Diversifying your portfolio
  • Making more loans
  • Increasing fee income

Benefits of Loan Participations for the Participants

Oftentimes, banks are looking for ways to manage their balance sheet, by putting access funds to work. We all know that investing funds results in more return than when funds are stagnant. Other benefits include:

  • Diversifying your portfolio
  • Increase interest income
  • CRA credits

How to Get Started with Loan Participations?

Many banks start small, with lenders they’re familiar with. Some financial institutions don’t know where to begin, and do not have established trading partners. Maybe their known partners aren’t able to contribute at this time.

 That is where an online marketplace like Participate can come in handy. Not only will you be able to connect with other banks looking for trading partners, you will be able to maintain and keep track of all your documents and shares in one place. Making participations faster and easier to do.

What is Loan Participation Technology?

Loan participation technology has been around for a few years but it has become more popular in recent years as lenders have begun using it more often with the rise of online lending platforms. The old manual process of mailing documents back and forth had formerly driven many banks to avoid the process entirely.

Loan participation technology has had a huge surge recently, with more banks looking for new trading partners than ever before. 

Loan participation software assists in all aspects of the loan process, from origination to servicing. It provides a centralized system to manage loan applications and approvals, while it also manages risk and compliance. 

What to look for in a Loan Participation Technology Tool

keywords: loan participation technology, how loan participation impacts users & investors)

The right loan participation technology connects banks with new trading partners and provides e-signature capabilities and other efficiency tools.

Users are able to choose the terms and conditions of their loans, the amount they want to invest, and other factors. Look for a tool that takes care of your NDA’s and non-compete agreements. As this will save you weeks of back and forth emails and phone calls.

The right tool will increase bank efficiency, cutting weeks off of the traditional slow participation process, giving your bank the additional liquidity and flexibility needed to maximize profits.

BankLabs has created a new way to revolutionize the traditionally slow participation process with Participate, a simple project management system that empowers users to self-serve and submit, track, and follow up on their data requests.

How You Can Start Using Participate: Loan Participation Technology

Participate is a revolutionary new platform that allows lenders to participate in peer-to-peer loans. With Participate, banks  with loans to sell can connect banks that are looking for loans to buy, and our automated platform makes participations faster and easier to do. 

Best of all, Participate is free for downstream buyers.

Participate is the best way to manage all of your participations. Whether you’re looking to buy or sell a participation, you’ll be able to manage it on Participate. With over 250 banks on the platform today, our customer base is growing weekly, and we’re always adding new features to make it easier for you to manage your participations.

Participate is a secure and efficient way to digitize and share loan info, documents, and automate workflow for originators, participants and lenders.

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Construction Loan Administration and How it Can Help You

By | Blog

What is Construction Loan Administration?

Construction loan administration is now a vital part of the construction lending process. Whether a bank’s construction lending portfolio is big or small, managing the risk of your portfolio is vital to success.

Although many financial institutions prefer to keep their construction loan administration in house, a growing number are utilizing digital tools to help their staff become more efficient. 

This process includes some or all of the following:

– Reviewing and approving borrower’s construction loan application and related documentation.

– Processing payments to contractors and subcontractors.

– Monitoring progress.

– Disbursement administration.

– Closing out the construction loan.

– Reporting for all parties.

Why You Need an Administration Service for Your Construction Loans – 3 Important Benefits

Construction loans typically have several parties involved. Construction loans are usually long-term and require a lot of documentation to be submitted to the lender by stakeholders. This is where an administration service comes in handy for construction loans.

The benefit of an administration service is that it will take care of all the tedious paperwork. A digital tool benefits financial institutions even more by offering a seamless updated process. Instead of going back to the office to submit an inspector, inspectors can submit documentation on their phone or tablet right from the construction site.

There are three benefits that come from using an administration service for your construction loans:

– It takes care of all the tedious paperwork for you, which would otherwise be time-consuming and difficult. This speeds up your cycle time which increases draw interest income.

– It streamlines the process so errors are minimized.

– It keeps the funding cycle moving, notifying each party when an update has been submitted.

– It offers each participant individualized reports that can be customized to their role and needs.

Essential Requirements of a Construction Loan Management Software

The construction loan management software is a system that helps lenders manage their financial transactions.

The best construction loans management software should be able to solve the following problems:

– It should be able to generate highly customizable reports.

– The user interface and navigation should be easy to use.

– It should provide real-time updates on the current status of payments and loans.

As a lender, it can be difficult to keep track of your contracts, invoices, and payments. That’s why we’ve developed Construct – the world’s leading construction loan management software. With its robust features, it’s easy to create a personalized contract management system that will save you time and money. Best of all, it works with your core system and other software.

Simplify Managing Construction Loans

The manual construction lending process is inefficient and prone to errors. Our solution, Construct, simplifies the process of managing construction loans. With a single software platform, lenders can originate, track, manage, and close any type of construction loan from start to finish.

Traditionally, construction lenders have to manage the workflow themselves, which includes making sure that the right documents are submitted at the right time and coordinating paperwork with the borrower and other parties. With Construct, all lenders need to do is upload their docs and get a complete dashboard of their construction loan. Construct also has a powerful dashboard for builders to manage their projects. It’s as easy as logging in at any time to view progress on a job, submit changes or request approvals.

Increase Draw Interest and Efficiency

Lenders are always looking for ways to manage their risks and provide more efficient services. A large part of the process is drawing interest from clients that want to finance their next project. The problem is, lenders spend hours coordinating projects, which can extend the drawing process by days. That’s where our solution comes in. Construct helps lenders draw more interest in less time and make more efficient deals by automating the process.

We developed a system to automate the process of managing construction loans. Our platform provides lenders with an automated system to manage all the necessary documents, calculations and reporting so they can focus on what matters most – serving your community. No more manually calculating interest, no more uploading documents one by one, no more copying and pasting data from one form to another. The age of spreadsheets is over.

construct

Construct – Construction Loan Management

By | Blog

Construction Loan Management to Help You Build a Better Bank

Years ago, lenders used spreadsheets and manually entered calculations in order to keep up with the complex and tedious details of each and every construction loan they managed. It could take days to receive inspection details and approve draw requests. Fast forward to today, where bankers have custom reports at their fingertips and inspections can submit details from the construction site.

We created BankLabs Construct to streamline the construction loan management process, so bankers could spend less time on spreadsheets and get back to serving their communities. With automated draw exports, budget calculations, and inspections, bankers are adding days of interest income back to each draw. At the same time, bankers are seeing a stronger relationship with borrowers, builders, and other stakeholders that appreciate having an efficient, easy digital solution to work with.

Construction Loan Management Process: How To Modernize and Streamline

The days of waiting a week for draw approvals and inspections are gone. Banks are now using construction loan management software like Construct to streamline their draw approval process. Our digital workflow accelerates draw cycle times, providing approvals days after than the manual process and can increase draw interest by 8-12%. 

Automated inspections also accelerate the draw approval process by instantly providing bankers with the information they need to fund a draw request quickly. This can add additional days of interest income to every draw. These features, combined with digital notifications, are helping over 150 banks streamline and modernize their construction loan management process today.

Manage Your Construction Loans Effectively

 

The amount of manual data entry needed to manage a construction loan portfolio can be daunting, not to mention ineffective. Without constant analysis, problems can arise within a spreadsheet without an admin noticing. Construct uses budget and loan data imports to reduce the amount of time needed to enter data into the system. The ability to upload loan data into BankLabs Construct eliminates the need to manually re-enter information and reduces the risk of human error.

Our automatic budget calculations feature automatically calculates remaining budgets based on draws, further reducing the risk of human error and allows bankers to spend less time doing manual calculations. 

Construction Loan Management Benefits

Construction lending is a significant portion of many financial institutions’ portfolio. Construction loan management tool benefits include:

– Maximizing ROI by taking days off of your turn-around time.

– Mitigating risk by providing detailed audit trails and real time alerts. Spreadsheets can’t alert you when a loan is overfunded.

– Improving the experience with borrowers, builders, and other stakeholders by offering an easy-to-use mobile solution.

Construction Loan Management Reports

One of the best features of a construction loan management tool is that it provides a detailed audit trail for each property and real-time reporting for an institution’s construction loan portfolio. This allows for efficient and informed oversight from an executive level. One of the most popular features of Construct is our custom reporting feature. At the click of a button, this automated feature provides a real-time look at a bank’s construction portfolio, decreasing risk and helping institutions make faster business decisions. 

Mitigate Risk and Optimize Construction Lending

Construction lending, traditionally a high-risk industry, is ripe for change and digital transformation. Our tool maximizes risk mitigation for our clients. In fact, auditors love us! Construct helps reduce risk by providing a detailed audit trail and real time alerts to users. You have 24/7 access to loan monitoring on any mobile device.

Construct – Leading Construction Loan Management Software

Struggling to manage your construction loans? We’ve got a solution! Construct is the industry-leading Construction Loan Management Software, providing construction lenders and contractors with a streamlined system allowing them to manage their loans and projects. With a suite of tools, Construct helps you minimize risk while making the most of opportunities.

The construction industry is one of the most profitable industries in the US and it’s only getting bigger. Unfortunately, it can be time-consuming and manual for lenders, especially as a financial institution grows. Construct solves this by automating the workflow, providing real-time analytics, and helping avoid costly mistakes.

loan management

Construction Loan Monitoring and Why You Need It

By | Blog

What is Construction Loan Monitoring and Why is it Important?

Construction loan monitoring is the process of reviewing and monitoring a construction loan to ensure that it is being paid in a timely manner.

Construction loans are typically loans that are taken out for the construction of a building, which need to be repaid in full after the completion of the project. Construction loan monitoring ensures that these construction loans are being repaid on time and will not negatively affect the borrower’s credit rating.

Construction financing is often considered to be one of the most risky types of lending because it relies on future income and assets. This type of financing usually has higher interest rates than other types of lending but also has more lenient repayment schedules and terms.

Construction loans are a type of financing that allows developers to build homes and other buildings. Construction loan monitoring is an important part of construction loans because it helps ensure that the developer does not default on the loan.

Defaulting on a construction loan can be catastrophic for both parties involved. The developer could lose access to their funds, which will make it difficult to complete their project. The lender will also suffer from a loss in revenue, which they might not be able to recover from.

How to Choose the Right Construction Loan Monitor for Your Company

In the construction industry, there are many different types of loan monitors and lenders. It can be daunting to find the right one for your company.

The right construction loan monitoring tool can increase efficiency while reducing errors. It can provide a detailed audit trail and custom reporting. The best construction financing monitor will give you all of this information in an easy-to-read format.

Banklabs Construct brings all your loans under one roof and gives you a complete overview of your portfolio. It calculates your risk exposure, provides alerts on delinquent loans, and keeps you updated on changes in interest rates. With all parties on the same page, Construct reduces risk while increasing cycle times, leading to fewer losses and greater gains.

 

5 Construction Loan Monitoring Best Practices

When it comes to construction finance, there are a number of best practices that can be followed. These practices will help in the monitoring of construction loans and the process of securing them.

These 5 tips will help you monitor your construction loans more efficiently:

  1. Make sure your process has risk monitoring checks throughout the process
  2. Increase your staff capacity with modern technology
  3. Have reporting capability on hand at all times
  4. Store documents all in one place for easy monitoring
  5. Automate as much of the manual process as possible to reduce errors

How Construct Loan Monitoring Software can Help You Save Money While Raising Awareness of Risks

Construction loan monitoring helps you save money in a variety of ways. It helps you save money by catching any problems with your contractor before they become costly problems that can’t be fixed. It also saves you money by preventing unnecessary change orders and by catching any errors before they happen. Alerts take the guesswork out of your lending process.

In addition to saving you money, construction loan monitoring also serves as an awareness tool for risks. When done properly, it can help identify risks and vulnerabilities in your project so that they can be mitigated ahead of time. 

Other construction lending process risks include:

  • Project Delays
  • Overfunding
  • Unnecessary line items
  • Delayed timeline

By carefully monitoring the project process and receiving overfunding alerts and notifications, lenders can catch mistakes before they become a problem.

What are the Benefits of Loan Monitoring Services?

Construction loan monitoring is an important aspect of construction lending. 

The benefits of construction loan monitoring include:

– Ensuring timely repayment

– Protecting lender’s interest

– Ensuring that the project is completed on time and within budget

What is the Best Way to Monitor a Construction Loan in the New World of Digital Technologies?

Construction loans are complex, and the best way to manage them is to make sure that you have a system in place.

Monitoring construction loans is not an easy task. It requires a lot of know-how and experience, which can be hard for some people to come by.

As the world of digital finance continues to grow, the need for a new type of construction loan system is arising. Construct is an innovative and simple solution for this growing need. The platform provides transparency and control for both lenders and borrowers as it tracks the loans in real-time. A unique and highly secure process, Construct helps to better manage risk. As a result, it is easier for companies to grow their business with less risk involved.

 

Expediting Draw Processing through Construction Loan Monitoring

Monitoring your construction loan is very important because it will help you stay on top of any changes in your financial status and manage your assets and liabilities more effectively.

The construction loan monitoring process is an important part of the entire construction finance process. Construction loans are often complex and involve a lot of moving parts. As a financial institution grows it’s construction portfolio, manual monitoring can extend the draw process time to an unhealthy level. A monitoring tool will use automation to cut the manual time down and expedite your draw process timeline, leading ultimately to more funding.

 

Construction Loan Automation

MBA data shows demand for newly constructed homes jumps 19%

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MBA data shows demand for newly constructed homes jumps 19%

 

2021 has brought something good – more mortgage applications for newly constructed homes. The Mortgage Bankers Association Builder Application Survey data shows that mortgage applications for newly constructed homes jumped 19% compared to last January. This demand is going to increase the demand for mortgage loans as well as help spur new development. All of this is great for the construction lending industry. More construction loans means more fee income, but it also means more work for lenders.

To help gain efficiency and handle the upcoming demand, many banks are looking for digital solutions to streamline their lending process.  Our construction loan automation solution eliminates spreadsheets and cut days off processing time. What does this mean? An 8-12% increase in draw interest, not to mention days saved. Cutting your processing time means your staff can handle more loans without getting overwhelmed.

With the increased demand for newly constructed housing comes an increased demand for construction loan administration. Construct can help you manage this demand.

Source:

https://www.mba.org/2021-press-releases/february/january-new-home-purchase-mortgage-applications-increased-189-percent

 

 

 

 

Bank Director article

Construction Loan Automation helps alleviate top concerns for banks in 2021

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Construction Loan Automation helps alleviate top concerns for banks in 2021

 

Each year BankDirector takes a pulse of the industry, asking top leaders what their biggest concerns are and what is on the minds of bankers around the country. This year, the answer was surprising. With the advancements in technology and the growing trend of M&A, banks are looking to differentiate themselves. How are financial institutions positioning themselves to do this?

One way is by keeping up with the digital demand. Customers and partners alike have become accustomed to modernized digital solutions for common banking practices. This includes an intuitive experience and automation options. The days of exchanging spreadsheets is over. BankLabs has seen an uptick in demand for construction loan automation software. Our solution, Construct, streamlines this process for banks. This not only saves them time but grows their net interest simultaneously. Vendors are seeking digitization from banks, making this software a great differentiator.

BankDirectors survey also revealed that 53% of those surveyed are concerned about net interest margin pressure when thinking about their institutions long term viability. How does Construct help your net interest? By accelerating cycle times, Construct helps you fund draw requests days earlier than before. We have found that on average, our clients increase their draw income by 8-12%.

With changes in face to face business interactions and increased acquisitions across the country, banks are looking to differentiate themselves with digitization and relieve net interest margin pressure. One tool they are finding useful in alleviating both concerns is Construct – a cloud based solution for automating your construction loan needs.

Source:

Governance Survey Results: Directors Sound Off on Diversity, Performance

 

fintech cant beat community banks

FinTech Can’t Beat Community Banks

By | Blog

My team and I have been called contrarian, which we will take as a compliment; we believe that the best community banks will beat the best FinTech players. Best on best so to speak.

Why do we feel this way?

Because, FinTech cannot win against modern community banks that combine their in-market, relationship-based banking with progressive technology.

To start, we define things a bit differently than most…

Community Bank(ing): ‘It is a way of doing business, not a size. It is about in-market, relationship-based banking.’

Progressive Technology: ‘Mobile-first products built to be banker-first (not bank) to enhance customer relationships, plus, marketplace technology that expands loan opportunities.’

BankLabs‘ ‘why’ is to ensure the survival and growth of community banks. Traditional financial institutions and the companies that have historically served them face disruption like never before. There are approximately 2,400 FinTech companies hunting for success and community banking customers are in their crosshairs.

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