Traditional lending, characterized by in-branch origination and manual, paper-based processes, has become obsolete with the advent of social distancing norms and the increasing demand for digital solutions. Offering credit digitally is now a necessity for lenders rather than an option. In a survey of over 40 decision-makers in the credit industry, 57.1% were already engaged in digital transformation efforts even before the COVID-19 pandemic. Customers now expect intuitive and fast credit services, making digital lending solutions crucial for staying competitive.

1. Gap Analysis: Short- and Long-Term Business Needs

Choosing the right lending software begins with a thorough gap analysis to understand your short- and long-term business needs. The software must be flexible and scalable to grow with your business, whether you’re starting as a small operation or scaling to a multi-billion dollar enterprise.

Key questions to address during this analysis include:

  • Who will be using the software?
  • Do you have an existing solution that you wish to retain?
  • Which additional features would enhance your operation?
  • Does your current infrastructure support the required functionality?
  • Do you have IT staff to manage an in-house system?

The outcome of this analysis should be a prioritized list of features and functionalities that your business needs for efficient operation, both in the short and long term.

2. End-to-End Lending Processes Automation with a Modular Structure

Many lending platforms only cover parts of the functionality required by a business, leading to the use of multiple tools for origination, servicing, underwriting, and reporting. This can complicate operations. The solution is to choose a software provider that offers end-to-end automation from application to the final payment, ensuring seamless communication, unified analytics, and a smooth borrower experience.

Unified Lending Management (ULM) is essential even if you don’t need full automation initially. A modular structure allows you to start with specific elements and expand as needed, integrating new functionalities back into the main platform seamlessly.

3. Cloud-Based vs On-Premises

The trend in lending and banking digitalization is overwhelmingly towards cloud-based solutions. Cloud-based systems are easier to deploy, less expensive, and provide high-level security. They also offer benefits such as regular maintenance, software upgrades, IT and customer support, and automatic backups. On-premises solutions, while offering greater control, often require significant resources and IT expertise.

Lenders should consider the benefits of cloud-based systems, including cost reduction, uninterrupted access, and robust security practices. However, the choice between cloud and on-premises should be based on specific business needs and security considerations.

4. Comprehensive Built-in Origination, Underwriting, and Servicing Functionality

Loan origination and servicing are critical and resource-intensive processes for lenders. The ideal software should offer integrated functionality for these processes, including:

  • Intelligent automated decision-making
  • Customer risk segmentation
  • Integration of traditional and alternative data sources
  • Flexible management of credit products and scoring models

Effective automation of these processes can significantly reduce errors, risks, and operational costs.

5. Ease of Business Logic Customization

Lending processes vary significantly across businesses, necessitating customizable software. The software should allow for easy customization of business logic, workflows, and decision-making processes without requiring extensive technical expertise. Solutions like TurnKey Lender’s drag-and-drop business logic builder enable on-the-fly customization, reducing deployment delays and costs.

6. User-Friendliness for Employees and Borrowers

Even the most advanced software is ineffective if users cannot understand it. The lending software should offer a user-friendly interface for both employees and borrowers, ensuring smooth and intuitive operation. A well-designed interface enhances user experience and reduces training time, contributing to higher adoption rates and operational efficiency.

7. Smart Automation and Proprietary Credit Scoring

The right lending software should incorporate intelligent automation and proprietary credit scoring to enhance operational efficiency and risk management. Features to look for include:

  • Integration with major credit reporting agencies
  • Proprietary scorecards that enhance credit bureau data
  • Non-traditional scoring methods for emerging markets
  • Use of AI and machine learning for continuous improvement of credit scoring capabilities

These features help in making faster, more accurate credit decisions and reducing the risk of lending to high-risk borrowers.

8. Easy to Deploy, Easy to Learn

The software should be simple to install, deploy, and learn. A cloud-based platform often facilitates seamless setup and integration. Look for software with:

  • Well-designed workflows that act as built-in training tools
  • 24/7 support to address implementation and training questions
  • Free trial periods or platform demos to evaluate real-life functionality

An easy-to-learn system ensures a faster return on investment and smoother operational transition.

9. Proven Track Record

Verify the credentials of each potential software provider to ensure they have a proven track record. Here are some ways to validate their credibility:

  • Confirm that lending is their core business
  • Look for consistent new software upgrades and product releases
  • Check user reviews on platforms like Capterra and G2
  • Research industry awards and recognitions

A proven track record indicates reliability and trustworthiness in a software provider.

Where TurnKey Lender Stands

TurnKey Lender offers a comprehensive, intelligent, all-in-one platform with modular capabilities to suit various lending needs. Key features include:

  • Unified Lending Management covering the entire lending process
  • Cloud-based deployment with high security and regular updates
  • Integrated origination, servicing, underwriting, and reporting functionality
  • Proprietary credit scoring powered by deep neural networks and AI
  • User-friendly design for both employees and borrowers
  • Easy customization with a drag-and-drop business logic builder
  • Proven track record with clients in over 50 countries
  • 24/7 customer support and a free trial for potential customers

TurnKey Lender’s platform is designed to address the specific needs of lenders of all sizes and types, providing a robust, scalable, and user-friendly solution for digital lending.


Choosing the right lending software is a critical decision that can significantly impact your business’s efficiency and growth. By conducting a thorough gap analysis, prioritizing end-to-end automation, considering cloud-based solutions, and ensuring ease of customization and user-friendliness, you can select a platform that meets your short and long-term needs. Evaluating the provider’s track record and leveraging intelligent automation and proprietary credit scoring will further enhance your lending operations. TurnKey Lender stands out as a reliable option, offering a comprehensive, scalable, and user-friendly platform tailored to the diverse needs of lenders.