The Year of the LOS Upgrade: Banks & Credit Unions Are Ready for a Change

The information in this article is intended for general informational purposes only and does not constitute legal advice. If you have questions related to the topic of consumer loan origination systems, we recommend consulting your own legal or financial advisors. The opinions expressed in this article are the opinions of the individual authors and may not reflect the opinions of MeridianLink, Inc.

Cornerstone Advisor's 2025 industry report found that both banks and credit unions are significantly more focused on selecting new or replacement consumer loan origination systems (LOS) this year than in the year prior. Not only that, but these financial institutions are now overwhelmingly planning to increase their tech spend by 1% to 10%, further underscoring just how ready the industry is for real change.

But setting the intention and getting out there and evaluating technology vendors are two very different things-and with good reason! Finding the right vendor for your needs is a process, but it doesn't have to be a complicated one. Stumped on what to look for in potential vendors?

Check out these helpful tips from our Evaluating & Selecting a Consumer Loan Origination System eBook to get started with a little bit of guidance:

These are just a few of the strategies and questions you'll find inside…

Ask Yourself: Are You & the Vendor Aligned?

When choosing a consumer LOS vendor, alignment goes beyond technical features-it's about finding a partner who shares your institution's values and goals. The right vendor feels like an extension of your team, with a business philosophy, customer service approach, and growth strategy that resonates with your core principles. The stronger the alignment, the more impactful and lasting the partnership.

Transparency, collaboration, and clear product direction are essential to building that connection. You should feel confident that the vendor is open about their product roadmap and transparent about future plans. Equally important is how they incorporate customer feedback. A vendor who listens, adapts, and works collaboratively with you fosters trust and positions your institution for long-term success.

Finally, consider their market position. How do they differentiate themselves from competitors? And do they have a proven track record with institutions that share your size, goals, or challenges? A vendor with a strong, positive reputation is indicative of their ability to deliver on promises and offer high-quality service.

Now Discover What You Can Accomplish Together

Once you've confirmed that a vendor aligns with your institution's values, it's time to shift the focus to impact. What measurable results can they actually deliver-and how?

Look past the promises and into the proof. Are they offering cost savings, operational efficiency, risk reduction, or better consumer experiences? More importantly, do they have the data to back it up? Examine real-world results from existing customers to see how their claims hold up.

Then, explore how the solution works in practice. What's included out of the box? Which pre-integrated tools are available? Are there features designed to cut down on manual tasks and help your team focus on high-value work?

And don't overlook their roadmap. Is it updated regularly? Will you have visibility into future enhancements? Ongoing transparency ensures your investment will continue to evolve alongside your goals and the broader market landscape.

Don't Compromise on Security or Compliance

How vendors handle data security and regulatory compliance can be the difference between seamless operations and costly setbacks. Request essential due diligence during your evaluation to ensure your sensitive information is thoroughly protected and save institutions from potential fines, legal complications, and reputational harm.

Ask about items such as encryption methods for data transmission and storage, security audit frequency, and incident response plans to minimize potential damage and ensure swift recovery. A trustworthy partner won't just check the compliance box, they'll proactively support your institution every step of the way.

Let the Search Begin!

Want more insights into and guidance on finding your perfect consumer loan origination system? We've got you covered-check out our complete guide to LOS selection below and begin your journey toward origination excellence in 2025 and beyond.