Lenders of all shapes and sizes depend on modern technologies to do more than just get the job done – now they can do it in a more informed and efficient way that benefits them and the customer. Whether it’s providing greater control for consumers, more loan options, faster processing of applications or more, modern solutions improve lives in many ways. Today, let’s explore several of these benefits in more detail.
Data-driven decision making
The more detailed information you have about a potential client looking for a loan, the more appropriate decision you can make. Thanks to artificial intelligence and machine learning, lenders do not need to manually sift through documents and histories to make informed choices about an application. In effect, it speeds up the loan process without introducing unwanted inaccuracies or overlooking important data elements.
A simpler route to approvals and subsequent payments
With the refinement of internal processes comes a luxury for lenders: the ability to allocate manpower and resources more efficiently. This potentially makes it possible to better serve more customers in a faster way without rushing, resulting in a generally smoother and shorter approval path. If there are any obstacles to approval, of course, they must be reported and resolved before moving forward.
Alternative loan solutions
Innovations such as peer-to-peer lending have paved the way for continuous improvement in the lender process, again reducing the time between loan application, approval and provisioning of funds. With this example, the more traditional approach of accepting deposits before offering loans is not a necessity. The turnaround time via alternative lending methods like these is therefore usually much shorter – even within a day or two in many cases. At a time when waiting for essential funds is often not an option, this is a process improvement that should be considered a top priority in the increasingly competitive lending sphere.
Reduced bloat process
With this time saving, without sacrificing service efficiency but rather improving it, comes the ability to better allocate resources and manage overhead. Additionally, by letting AI, machine learning, and automation manage all processes that can realistically be supported by software rather than manual labor, you will lighten the load on the shoulders of team members. hard working team. This makes it more possible to transfer employees to more pressing projects, process improvements, strategy planning, etc., while modern technology tackles much of the busy work.
More profitable lending operations
Of course, saving on overhead can have a huge impact on your own finances and the resources available as a lender. From day-to-day office expenses to long-planned cloud migration projects, security improvements, increased hiring and training of workers, there are many ways to use cloud operations. more profitable loan.
Not only that, but you can pass those savings on to your customers to make their lives better. For example, you might be able to lower current interest rates, especially if there are a lot of potential loan applications and you can process their requests in a knowledgeable manner. Alternative paths include the development of mobile apps, software tools, and other add-on solutions that make the lending experience easier and more informative for customers. It could even lead to more savings by removing outdated and cumbersome portals and replacing them with more secure, modern and easy to navigate systems.
Improved security and compliance
A significant benefit of adopting modern technologies is that you are in a better position to maintain modern security standards. This is critical for a lender as they must remain fully compliant in many areas including data privacy, cybersecurity, fraud detection, cloud governance, and more. Systems like Blockchain are instrumental in these areas, with many such solutions leveraging predictive analytics, AI, automated machine learning and more to help lenders look after their customers. and their finances.
Don’t be stuck in the past
The only way to truly improve the lending process is to be open to change, and many organizations struggle to do this by clinging to outdated and woefully inefficient legacy hardware and software. This actually results in outdated internal processes, the burdens of which are then passed on to customers while slowing down your operations. So with the right strategy and careful, calculated improvements, a modernized lending process that includes things like digitization and cloud integration reduces this friction and many subsequent risks.
There’s never been a better time to take your lending operations to the next level. Regardless of the size of your organization, the complexity of the processes or the customer base, the rewards are worth it. By keeping abreast of the latest proven innovations and incorporating them where it makes sense, you position your capabilities not only to stay aligned with prospects’ needs, but also to to keep your position as a viable competitor is well worth the time and expense.
About the Author: Rebecca Avram is a Mortgage Advisor at Loan center for the elderly. Rebecca’s no-nonsense mortgage approach asks the right questions, determines her client’s needs and matches those needs with the appropriate lender. Rebecca is a member of the British Columbia Mortgage Brokers Association. This professional association seeks to expand the knowledge and connections of its members beyond the content of the UBC exam requirements by providing ongoing educational and networking opportunities. Rebecca enjoys keeping up to date by subscribing to many industry magazines and trade publications which she reads and finds extremely useful when providing services to her clients.