Implementing a New Loan Origination System What Banks Need to Know By Abrigo If your financial institution is replacing your loan origination system (LOS), understanding the planning process before implementation begins can make the transition more manageable. After all, for many financial institutions, implementing a loan origination system is unfamiliar territory. The current system may have been in place for years, with workflows, workarounds and reporting habits built around it over time. As a result, leaders who begin exploring a legacy LOS replacement usually have the same questions: What will the process look like? How difficult is it? What has to happen before implementation starts? How do we make sure the new system improves lending operations in a meaningful way? “The biggest obstacle for implementing new technology is often getting people to embrace, adopt and use it,” says Bailey Barretto, director of advisory services at Abrigo and a change-management expert. Sharing information about what’s involved in replacing an LOS will create better buy-in from everyone the system touches: lending, credit, operations, compliance and even the borrower. The timeline for replacing a loan origination system varies by institution size, workflow complexity, data quality, integrations and internal decision-making capacity. But replacing loan origination software usually requires five planning priorities: defining the outcomes the institution wants to improve, mapping current lending workflows, preparing data 15 Colorado Banker
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