As a seasoned construction lender, you know the struggles of making sure your projects stay on track, money is disbursed quickly and accurately, customers are taken care of, and potential risks are recognized early and dealt with swiftly.
However, even with all of these moving pieces, construction is still one of the least digitized sectors in the world. In fact, the vast majority of lenders use spreadsheets to track and manage the entire draw disbursement process. This not only leads to inefficiencies and increased risk, it can severely impact your customer experience.
McKinsey reported that a customer experience transformation drives:
- up to a 30% uplift in customer satisfaction,
- up to 20% improvement in employee satisfaction, and
- up to 50% increase in revenue.
Investing in technology will provide immediate advantages that your team and your customers will appreciate. It will set you up to scale successfully and provide a stand-out experience to drive repeat business, more referrals, and improved satisfaction. Here are some tangible benefits to gain by digitally transforming your construction lending process.
Keep up with customers “last best experience”
Bring Trust And Transparency To Construction Lending
Your customers have growing expectations of their digital experience with you at all touchpoints. The “Amazon Effect” carries beyond ecommerce; those exceptional digital experiences are top of mind for your customers. As stated by IBM Global Markets, SVP, Bridget Van Kranlingen, “The last best experience that anyone has anywhere becomes the minimum expectation for the experience they want everywhere.”
Your customers want visibility and convenience. The only way to fully deliver on that expectation is with technology. Digital transformation of the construction lending experience is no longer an option but a requirement to meet demand and maintain your strategic advantage.
A dedicated customer app is a must for today’s construction lenders. The best technology will provide an easy way to securely communicate and exchange information with stakeholders and make draw requests as easy as ordering on Amazon. This app can also provide customers a view of real-time information on the loan, including the budget of record, documents, and communications. Land Gorilla’s OneSite, a web and mobile app, provides stakeholders a simple draw request process with clear next steps, keeping everyone on the same page and projects on track. OneSite can be white-labeled with your branding so the exceptional experience your customers have is equated back to you.
It’s a streamlined, one-step process. Draw requests are fully digital and completed by the builder in minutes, all in one workflow. We have a very diverse group of builder partners and it was important to have a solution they could use both in the back-office and in the field.
– Thrive Mortgage
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A Single Source Of Truth
Eliminate Multiple Budget Versions Among Project Stakeholders
This benefit may be simple in concept, but it solves one of the biggest pain points we hear from lenders and their customers. A centralized budget provides your customers direct access to real-time balance information and provides a single source of truth to all stakeholders. Allowing access to current budget information, keeps all parties on the same page and increases trust through transparency.
Lenders utilizing this technology report a huge reduction in the back and forth with contractors, builders, and borrowers regarding the budget. Stakeholders gain better visibility so there are no surprises or delays in disbursements.
Draw requests are accurate with builders’ access to the budget of record, which significantly cuts down on back and forth between builders and Draw Coordinators
– Thrive Mortgage
I can see the budget in real-time—every line item, payment disbursed, and more. I really like the fact that I can immediately see accurate budget information without waiting for the lender to get back to me.
– Renovation Loan Borrower
Centralized Communications And Document Management
Ditch Disparate Communications Of Multiple Inboxes And Paper Trails
Did you know that businesses lose an average of $11,000 per employee every year due to ineffective communications1? With all the back and forth you have with your borrowers and project stakeholders during the construction process, email inboxes and paper to manage communications is a losing combination. Not to mention the terrible customer experience this creates.
Construction loan management technology brings communications and shared documents into one central location for your team and customers to access. Messages and documents will no longer be stuck in inboxes or paper files. Each of your team members can instantly pick up where another left off, never leaving your customers waiting for answers.
Land Gorilla software provides a Messenger feature, a loan-level communication tool that connects lenders and stakeholders such as borrowers, builders, and contractors. It delivers increased efficiency to the communication process and provides a faster and safer way to exchange information. Communications are stored in a central location and your team always has access to the latest communication.
Land Gorilla also provides a Document Center that allows lenders and their customers to organize and manage documents for centralized visibility. Powerful features allow your team to stay organized, share/exchange documents with user level access, and more so your team can stay focused on servicing your customers.
1 Businesses Lose an Average of 11,000 per Employee Every Year Due to Ineffective Communications and Collaboration
Lightning-Fast Draw Disbursements
Simple process to safely pay fast
The shortcomings of manual tools, such as spreadsheets, have a deeper impact on customer experience than you may think. Manual entry takes time and resources, is full of costly errors and introduces unnecessary risk. The ultimate result when used in construction lending is a painfully slow draw disbursement experience for your customers. Draw disbursements can take 3 times longer with a manual process and result in significant loss of interest income.
Construction loan management software enables you to streamline and automate tasks and workflows for your team and your customers. All parties are on the same page throughout the draw request and approval process. As a result, payments move faster (and safer) and your customers are never left wondering about the status of fund requests.
Going from a totally manual procedure wherein the draw process could take upwards to 5 days, we are now able to get draw funds out to the builder within 24 to 48 hours.
– First Federal Bank
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