With a cutting-edge digital lending platform, more data can be processed quicker, along with advanced metrics used to understand portfolio and process performance better.
Fremont, CA: The need for digital lending platforms and events has increased due to the COVID-19 crisis. Banks and credit unions should simplify borrowing and provide more options for customers to meet the needs of current borrowers as well as future borrowers. The coronavirus pandemic has disturbed the flow of the entire world of banking and the consumer market place at once. Bank and credit union branches closed, paychecks stopped, loan payment deferrals became a normal thing and sources of new funding lessened.
The majority of the financial institutions are reluctant to change their basic lending processes. From application to close, most lending platforms are complex and time-draining for both consumers and financial institutions. In order to boost the digital lending process, a technology solution is required that can provide a seamless experience to the loan customer from application to close. The method of borrowing that includes steps such as complete an application provide documentation and signatures, monitor progress and receive funds needs to be easy for the borrower.
The coronavirus pandemic has taught people how leveraging data, analytics, and digital technology can simplify everything from purchasing goods online to getting groceries or meals delivered, to working remotely.
Let us look at the lending opportunities that COVID-19 brings to the Table:
Quick Initial Decisioning – The ability to offer immediate pre-approval decisioning pending required documentation stops the borrower’s shopping process, increasing the potential for positive results for the consumer and financial institution.
User-friendly Interface – Loan application processes are mostly time-taking. Hence, those who will eliminate steps using intuitive design and data pre-fill, and will evaluate legacy steps that can be wholly eliminated or modified can thrive in the future digital lending landscape. The aim should be to shift to single click assessment.
Advanced Metrics – With a cutting-edge digital lending platform, more data can be processed quicker, with advanced metrics used to understand portfolio and process performance better. Advanced warning systems around potential credit issues are extremely useful as are insights regarding market and process improvement opportunities.
See also: Top Banking Tech Solution Companies
