LendFusion dark logo mobile

Streamline Your Lending: It’s Time to Move from Excel to Loan Management Software

written by the Andres Valdmann on the 16th of April 2024

Is the hassle of managing loans in Excel slowing your business down?

The move from Excel to loan management software not only improves accuracy and enhances security but also ensures smoother workflows.

In this article, we look into how specialized software can resolve the shortcomings of Excel and what your transition roadmap could look like.

5 Reasons Why Excel Falls Short for Lending Businesses

Excel has been a staple in many financial institutions for years.

In fact, in our own exclusive research – where we surveyed 187 CEO’s of digital lending businesses – we found that 31% of lenders still manage their loans with Excel.

Why do so many lenders still use Excel?

Easy. It’s familiar, accessible, and capable of performing a variety of tasks. 

However, when it comes to managing loans, Excel does have its limitations.

1. Error-prone calculations

Even seasoned Excel users aren’t immune to human error, particularly when handling intricate loan data.

These errors can lead to inaccurate loan calculations, false financial statements, and even financial losses.

In a lending business where accuracy is of utmost importance, these errors can lead to mistrust among clients and negatively affect the reliability of your data.

2. Limited collaboration and accessibility

The design of Excel spreadsheets isn’t meant for simultaneous collaboration, potentially causing lags in data analysis and decision-making.

Limited accessibility further compounds these issues, making it difficult for team members to work together and efficiently manage loans.

3. Inadequate security measures

The security measures of Excel aren’t tailored to safeguard confidential loan data.

This lack of robust security features can expose businesses to potential data breaches, putting sensitive client information at risk and potentially leading to significant financial and reputational damage.

4. Difficulty in tracking loan progress

Due to Excel’s static nature, tracking loan progress effectively is one of the biggest challenges in loan management.

It lacks real-time updates, which can lead to outdated information and difficulties in monitoring loan statuses and deadlines.

5. Time-consuming processes

Just like any other business, efficiency is paramount in the lending sector.

Unfortunately, managing loans in Excel can be a time-consuming process.

Without automation, tasks such as calculating interest rates and establishing repayment schedules require manual data entry, which can divert attention from other crucial lending operations, including loan origination and loan servicing.

5 Advantages of Loan Management Software

Shifting from Excel to specialized loan management software can offer a wide range of benefits to lending businesses. Let’s take a closer look at these benefits in more detail.

1. Streamlined workflows

The automation of repetitive tasks, such as processing loan applications, by loan management software reduces the necessity for manual intervention.

This automation leads to streamlined workflows, saving time and increasing efficiency.

2. Enhanced data visibility and reporting

In lending businesses, customer data visibility holds significant importance.

Loan management software provides real-time insights and customizable reports, allowing for better decision-making and improved business outcomes.

3, Improved security and compliance

The lending industry cannot compromise on security and compliance.

Loan management software enhances these aspects by providing robust security measures and facilitating adherence to regulations.

4. Scalability and flexibility

Your loan management software should have the ability to keep up with the growth of your lending business, handling more loans as your portfolio expands.

Scalability and flexibility in loan management software allow businesses to manage an expanding loan portfolio and adapt to changing business needs.

5. Better customer experience

Lastly, by offering user-friendly interfaces, quicker loan processing, and effortless access to loan information, loan management software enhances customer experience.

This not only enhances customer satisfaction but also helps in retaining customers.

Key Features to Look for in Loan Management Software

Having highlighted the benefits, it’s time to highlight the key features in loan management software to consider when choosing a platform.

User-friendly interface

An intuitive interface guarantees:

  • User-friendliness
  • Swift adoption by the staff
  • Efficiency of processing loans
  • Streamlined workflows
  • Improved overall customer experience

Customizable workflows and loan products

Customizable workflows and loan products, as well as lending solutions, allow businesses to:

  • Tailor the loan management system to their specific needs and processes
  • Mitigate risk
  • Gain access to extra capital through loans based on their requirements
  • Meet specific business requirements
  • Launch new products for all types of loans quickly

This flexibility helps businesses achieve their goals and succeed in their industry.

Seamless integration with existing systems

Integrating seamlessly with existing systems guarantees uninterrupted data flow and minimal disruption during the shift from Excel to loan management software.

This enhances transparency, manages the loan process flow, and provides agility in IT deployment through the use of a management system.

Robust reporting and analytics

Robust reporting and analytics features provide valuable insights and help businesses make data-driven decisions.

They offer precision in reporting, enhance decision-making, and provide real-time visibility into the loan portfolio.

Reliable customer support

Reliable customer support ensures timely assistance and ongoing system optimization. It enhances the user experience, ensures precise information management, and improves customer satisfaction.

Transitioning from Excel to Loan Management Software

Though the shift from Excel to loan management software might appear intimidating, it can be a seamless process with correct planning and execution. Here’s how you can achieve that.

Assessing current processes and pain points

Before initiating the switch, you must evaluate your existing processes and pinpoint bottlenecks. This will help you understand where loan management software can provide the most value and improvement during the application process.

Selecting the right software 

Upon recognizing your needs, the next step involves choosing the appropriate software solution. Consider the features, pricing, and vendor reputation to ensure you choose the right loan management software to meet your needs.

Planning and executing the implementation

Effective implementation necessitates transparent communication, comprehensive training, and consistent support. Plan carefully, engage all relevant stakeholders, conduct thorough testing, and deliver comprehensive training to ensure a smooth transition.

Monitoring progress and gathering feedback

It’s vital to monitor progress and collect feedback throughout and post-transition. This will help you identify areas for improvement and measure the success of the software implementation.


Transitioning from Excel to loan management software can revolutionize your lending business, providing a myriad of benefits that go beyond simple number-crunching.

With its streamlined workflows, enhanced data visibility, improved security, and better customer experience, a loan management software is a worthy investment.

Ready to see the difference firsthand?

Book a demo with LendFusion today and discover why a Loan Management Software is the upgrade your lending business needs to move beyond the limitations of Excel. 

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.

Read more

LendFusion is an affordable and user-friendly loan management system platform that helps you spend less time on the day-to-day operations and more time on getting sales and customers.

Get personalized demo