Overview of Products

Data Select Systems has been in business since 1982, first working with Savings and Loans and then moving into the banking space and ultimately into CDFIs and government agencies. Freeman shared that Data Select Systems prides itself on evolving over time by listening to their clients to ensure they are offering the best product possible. The current CLCS (Construction Loan Control System) product works for a cross section of banks, nonprofit CDFIs and government agencies, it can be extremely flexible to handle different types of loans. CLCS is a full accounting system and controls budgets, units, fees, escrows, participations, disbursements, payments, interest accruals, risk, reporting, milestones, provides billing statements to borrowers and integrates with general ledger systems, Salesforce, and any other system. There is also a borrower portal that can be added to the platform so borrowers can see and interact with their loans. CLCS also interfaces to a nationwide inspection company to import inspections and related documentation.

How does the product fit into the work cycle of a CDFI?

The majority of clients use CLCS for loan management, though it can also be used for loan origination. The platform has 64 built in reports, as well as Power Bi dashboards allowing users to see their portfolio in an instant.  Data to be generated and passed between systems as needed. As noted above, there is also the option for a borrower portal, which allows borrowers to view and interact with real-time data for each of their loans. Borrower can also make payments through the borrower portal.

Are there other systems that your product works with? How does the product integrate with other platforms and systems?

CLCS integrates with a wide range of platforms, such as general ledger systems, Salesforce, LaserPro and others. Integration can be done via APIs.

What does onboarding generally look like?

Each client gets a project manager who is involved in the entire process. Implementation begins with conversations with the CDFI staff, starting with identifying where the platform will be based, either on a local server, self-hosted or hosted by Data Select. The Data Select staff work with the CDFI staff to build out and install the product to meet the CDFIs needs. There is a set up process and loan conversion to prepare the existing portfolio for the new platform. Overall set up time is largely dependent on the size of the CDFI, but Freeman estimates that the process takes up to three months for larger CDFIs with a bigger portfolio to “go-live” on CLCS.

What support and training are offered?

Training begins during installation, as future users are involved in the early phases of designing interfaces and specifications between their old system and CLCS.  The project manager is available for any questions, as is the help desk which provides live support. A range of trainings are available based on job functionality and client need. Depending on the agreement, Data Select, provides monthly or annual maintenance on the full system.

What makes adoption successful? What do you wish CDFIs knew before they began an implementation?

Freeman reiterated the support that Data Select has available to CDFIs, such as the helpdesk and user groups, and encourages users to take full advantage of these built in support as questions arise. She also reiterated the good work of CDFIs and Data Select’s strong interest in supporting their missions.

What types CDFIs use CLCS – are there some that are a better fit?

Data Select is a good fit for CDFIs doing larger scale loans with a construction component, such as those that finance low-income housing projects, lines of credit, rehab, term & perm loans, refinance, CPACE loans, syndicated loans, master revolving loans, phased loans, and more. Freeman shared that they have CDFIs with a range of product types, such as a client financing solar projects and infrastructure loans. The platform also has a lot of flexibility on the structure of the loans, such as how loans accrue interest and payment schedules, which can be adapted for the client and their products.

What integrations or reports does your tech solution allow for in terms of CDFI reporting, CDFI certification, or other data requirements?

CLCS has a significant number of built in reports as well as the flexibility to customize reporting and dashboards through Power BI. Built in reports including things like trial balances, daily interest calculations, budgets, loan maturity reports, and delinquency reports.

How has the CDFI industry changed in recent years and where do you think the industry is going, in terms of technology?

Freeman reflected that there has been an influx of funds in recent years, which has corresponded to changing loan types. They have seen a push for infrastructure loans within the CDFI space overall, including loans for environmental projects. The role of technology continues to gain importance as loans become more complex and it is no longer possible to work off of Excel spreadsheets or older systems.