In terms of managing borrowers, the traditional loan management system has numerous bottlenecks. Lenders must keep updated borrower profiles in their system throughout the loan process, from origination to disbursement and recovery.
Fremont, CA: Financial institutions can use digital lending solutions to give loans online as well as automate their processes, from loan application to disbursement and everything in between. One can find a solution for every aspect of one's business, from a simple online loan application form to a fully digital lending suite. Wherever possible, 93 percent of fintech SMEs wish to find a technological solution.
Borrower Life-Cycle Management
In terms of managing borrowers, the traditional loan management system has numerous bottlenecks. Lenders must keep updated borrower profiles in their system throughout the loan process, from origination to disbursement and recovery. For borrower data, many businesses still rely on calendars and spreadsheets. Manual processes like these make operations extremely inefficient.
The following are some of the disadvantages of this procedure:
• Loan approval delays as a result of manual tracking
• Decision-making ambiguity as a result of inaccurate or incomplete data
• Errors caused by humans during data entry or maintenance
• Time-consuming process due to the need for repeated human intervention
Support for Omnichannel Lending
Customers nowadays prefer to communicate via text messaging, email, and mobile channels. According to a recent survey of credit card customers at North American financial institutions in 2018, 65 percent of issuers initiated contact via traditional channels such as voice mail, phone, and letters. The response rate was dismal, and digital channels such as online banking or mobile could have achieved 89-92 percent payment rates instead.
Omnichannel solutions are not the same as multi-channel solutions. The business considers only chosen channels in multi-channel solutions, and each channel operates independently. Omnichannel lending connects various platforms and channels. It focuses on the customer, giving them a seamless and personalized experience. An omnichannel lending platform connects all platforms, allowing lenders to access borrowers' information from any location. It also expands business opportunities through targeted and meaningful interactions. Customers are less likely to abandon the application and recovery responses when it is delivered via omnichannel.
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