5 Training Pitfalls That Derail Loan Management Software Projects
What’s the fastest way to derail a new loan management system?
It isn’t bad code or slow integrations – it’s poor training. Too many lenders invest in the right platform, only to stumble when their teams aren’t equipped to use it properly.
The result? Confusion, delays, compliance gaps, and frustrated borrowers.
The truth is, a new LMS is a shift in how your entire lending operation runs – from origination to collections. And if your people don’t know how to navigate that change, even the best platform will feel like a step backward.
Training is the bridge between technology and results, but it’s often treated as an afterthought.
In this guide, we’ll break down the five biggest training mistakes lenders make when rolling out new loan management software – and how to avoid them so your project delivers value from day one.
Mistake 1: Training Only the Admins
Here’s what usually happens: the LMS vendor delivers training sessions for your administrators. Maybe the IT lead, the ops manager, and a couple of compliance staff.
Then go-live hits. And suddenly, your frontline team – the loan officers, underwriters, collections agents – log in for the first time. They’re expected to process payments, answer borrower queries, or run reports, all without ever having seen the workflows in action.
That disconnect creates errors, delays, and frustration.
The better approach? Role-based training.
Instead of one-size-fits-all sessions, map your training to real roles:
- Loan officers need to practice creating and approving applications.
- Servicing staff should walk through repayment posting and reconciliation.
- Compliance teams need visibility on audit trails and reporting.
When every operator learns their workflows, adoption is smoother and confidence is higher.
Mistake 2: Skipping Shadow Operations
Plenty of lenders make the jump straight from old to new. On Friday they’re reconciling in Excel, and by Monday morning, everything is supposed to run on the new LMS.
That’s a recipe for missed payments, broken balances, and sleepless nights.
The better approach? Run a dual-system phase – shadow operations.
Here’s how it works:
- Import a copy of your loan book into the new LMS.
- Process repayments, schedules, and refinances in both systems for a defined period (usually 4–6 weeks).
- Reconcile daily or weekly to spot mismatches.
Shadow operations uncover the issues you want to find before go-live:
- Calculation mismatches in interest or fees.
- Workflow gaps where the LMS logic doesn’t match your processes.
- Training gaps where staff need extra coaching.
By the time you switch fully, your team is working with confidence, not guesswork.
Mistake 3: No Clear SOPs
A login isn’t a training plan.
Too often, lenders tell staff to “click around” and figure it out. That’s fine for power users or tech-savvy managers – but most operators just want clarity.
Without clear instructions, everyone improvises. And when everyone improvises, consistency disappears.
The better approach? Document role-based SOPs (Standard Operating Procedures).
For example:
- Origination: Step-by-step on creating an application, uploading docs, and triggering KYC.
- Servicing: How to post repayments, set up direct debits, or trigger reschedules.
- Collections: What to do when arrears hit 30, 60, or 90 days.
SOPs don’t just keep things consistent – they reduce risk. Auditors, regulators, and even investors want to know your operations follow defined processes. Having a living SOP library gives you that assurance.
Mistake 4: Forgetting About Champion Users
In every rollout, issues pop up:
- “How do I generate a new schedule?”
- “Why didn’t that repayment reconcile?”
- “Which token do I use in this template?”
If every question has to go to management or the vendor, bottlenecks form. The rollout slows, frustrations mount, and leadership gets dragged into minutiae.
The better approach? Appoint champion users.
These are power users in each department who:
- Handle first-line questions from peers.
- Collect recurring issues for vendor escalation.
- Reinforce SOPs and best practices.
Think of them as “internal trainers.” They’re not IT staff – they’re trusted operators who know the workflows and speak the same language as the team.
When every team has a champion, adoption accelerates – because support is built-in.
Mistake 5: Treating Training as a One-Time Event
Here’s the truth: one training session at go-live won’t cut it.
People forget. Staff turnover. Features evolve. Without ongoing enablement, your team slowly drifts back into workarounds and bad habits.
The better approach? Treat training as continuous.
- Refresher sessions: Run them quarterly, not just once.
- Update SOPs: Whenever workflows change or new features are enabled.
- Onboarding program: Every new hire should go through structured LMS training.
Think of your LMS like any other core system – finance, compliance, or CRM. Training isn’t an event. It’s a process.
People Before Platforms
The biggest mistake lenders make when adopting new technology is treating it as purely technical. In reality, a lending management system is only as strong as the people using it.
Train only the admins? You’ll frustrate operators. Skip shadow operations? You’ll catch errors in production instead of testing. Skip SOPs or champions? Chaos creeps in.
But when you take a structured, role-based, people-first approach to training, your new LMS rollout doesn’t just “go live” – it sticks. Borrowers see it, regulators respect it, and your team finally gets to focus on lending, not firefighting.
Ready to see how LendFusion supports smooth migrations with role-based training and shadow-mode onboarding? Book a demo today and give your team a platform they can actually use with confidence.
Andres Valdmann, CEO
Andres is the Chief Executive Officer at LendFusion. Andres has 15 years of experience in fintech and loan management software and has a proven track record in helping companies hit their growth goals.
Connect with Andres on LinkedIn
