Build VS Buy
Data Management
December 27, 2024
5 minutes
It's nearly impossible to envision the corporate world without Excel. However, the era of relying on Excel to meet the complex requirements of your growing business has ended. A static reporting tool like Excel doesn’t provide in-depth portfolio insights or easy-to-understand, out-of-the-box data visualizations. Now is the time to bid farewell to this old companion and welcome a cloud-based loan portfolio management platform.
If you’re still managing your loan data on Excel, here are 5 reasons you should finally switch in 2025.
Excel spreadsheets, though powerful, are not immune to human error. Sophisticated formulas can quickly become complicated, especially when multiple contributors are involved. Manual data entry required for a spreadsheet-based process jeopardizes the reliability of the loan management process. Unfortunately, as complexity increases, so does the chance of human error.
While Excel spreadsheets carry a high risk of human error, as each cell is a crucial part of the formula used and is subjected to manual manipulation, cloud-based tools eliminate this worry by creating a data warehouse that compiles and stores data from different sources in one place. Calculations and rules needed to process the data can be added before it lands in the warehouse, providing answers when you need to report on them.
Excel reports take time to produce, and in a fast-paced industry, speed is crucial in decision-making. While spreadsheets are useful for storing data, they’re not ideal for data manipulation and analysis. Loan management software lets you easily transform raw data into meaningful charts, tables, graphs, and even entire dashboards. Unlike Excel, cloud-based analytics continuously analyzes information at all times, offering real-time insights.
One key advantage of a SaaS loan management platform is out-of-the-box reporting tailored specifically to industry needs, and customized reporting options for further tailoring to meet your company’s requirements. An intuitive loan management platform cuts the time previously needed to produce and manipulate Excel reports, allowing employees of any experience level to gather reports and key data insights hassle-free.
Excel has been around long enough for internet data thieves to find ways around locked cells and password-protected sheets. If you’ve avoided moving to a cloud-based loan management platform because of security fears, think again. Excel sheets are easily compromised, despite the presence of passwords and hidden formulas. Cloud-based loan management software provides extra security and data privacy features to ensure sensitive data remains safe.
Security measures to look for include encryption of user and company data, fully customizable user permissions and role-based access security, user session time-outs/lockouts, and audit logs covering each user action. Look for platforms that adhere to industry best practices and standards, such as SOC2 compliance, ensuring a company's information security measures meet rigorous standards and can adequately protect client data. If you’re managing your portfolio in spreadsheets, you’re at risk not only for basic data security issues but also with industry regulations and compliance.
While sharing spreadsheets over email or in a shared drive is necessary for collaboration, it opens you up to data security risks. And, keeping track of file versions and edits becomes challenging. Cloud-based loan management platforms can be used by multiple people simultaneously, eliminating collaboration silos and version control issues and improving team productivity.
Excel lacks built-in workflows, especially for complex calculations essential in loan portfolio management. When adding macros and enhanced customizations, large spreadsheets can take considerable time to open, and calculations can take hours. Cloud-based loan management platforms bring flexible and robust customization and automation options to the table.
Cloud-based platforms offer various built-in automations specific to loan management, and allow for further customization in workflows and data visualization, making it easy to navigate and filter data. Workflows can be run simultaneously by different users, and important metrics can be revisited in the future.
If you’re using Excel spreadsheets to manage your loan data, think again. Spreadsheets lack the efficiency, security, and compliance to sustain a growing loan management business in 2025. One minor mistake or data leak can cause significant financial damages, ruining your company’s credibility and your client’s trust. Let 2025 be the year you make the leap to a cloud-based loan management platform, and watch your business scale.
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Thought Leadership
Implementation
December 27, 2024
