The process of becoming a lender digitally is no easy feat as it requires a digital overhauling of the traditional banking hall procedures, which are very slow. The challenges of opening a new digital lending platform also abound. The absence of trust in the decisions made by automated means, IT operating functions, and limited access to data are a few of the other challenges.
Research conducted in 2018 shows that most banking and credit companies were buying into the idea of having digital platforms through which their customers could apply for justrightloans.com. In a digital lending review report for 2019 backed by Meridianlink, it was discovered that there was a significant increase in banks that offered direct lending solutions to their customers. But overall, these offerings were way below par when compared with the offerings given out by the big
In this modern digital era, banks and credit institutions should take a holistic approach when it comes to customer satisfaction by taking them on the journey from the normal banking lending processes to the new world of digital lending. This, though, should not be rushed because research has shown that the transformation from traditional to digital lending is a process that should be done with the aim of improvements coming in over a period of time.
It is essential to point out here that even though digital lending is the new process, it does not completely put aside the essence of human interactions. The digital process is mostly a self-service process, but having a route that is multi-
In a 2019 lending review of why most banks and credit establishments were coming up short on their digital lending platforms, these key factors were highlighted:
- Applying for loans still required customers to go to banks
- Most of the digital lending applications are not what customers expect
- Banks do not take the customer’s desire for functional digital lending processes seriously
- New digital lending is being put forward by alternative lending firms
- Extensively collaboration is taking place between organizations and
Banks and lending firms have to improve on their application process through their mobile applications drastically. A survey carried out in a 2019
The survey also highlighted the fact that only 34% of these financial firms had an app dedicated to mobile loan applications for customers. Applying for a loan on a mobile device in 2019 has significantly risen in comparison to 2018 when it was just 26%. Having one also improved their customer base.
Support for End-To-End Application Processes
Even though most banks and credit unions introduced digital applications to ease the process of customers’ loan requests, most of these organizations still lacked the digital capability to effectively support a thorough end-to-end loan application procedure. This was not the same for the big
The Processing Speed is Paramount
The speed with which other sectors of the economy, such as the tourism and retail sectors make fast decisions with their digital platforms has made it mandatory for banks and lending establishments to follow with similar speed on their digital lending platforms.
A lot of digital platforms still take quite a while when it comes to making decisions about lending money to borrowers who desire speed in decision-making when it comes to processing their loan requests.
This age-long challenge of quick decision making by lending institutions can be tackled through various means. For starters, the bank should be viewed as a digital factory, where customers can be assured of getting loan services at
The era of customers waiting more than a day or even weeks for a decision to be made by banks and other lending institutions on loan requests is no longer acceptable. Customers in
Start Digital Lending Platform from the Basics
There is a lot of talk about robotics, digitization, and automation, but very little about actively pursuing it. Digital banking and lending technology would not be of much use if the routine banking processes that require automation were not efficiently examined and streamlined.
Without taking note of these factors, and using them to revamp their digital lending platforms, most banking and credit lending firms will definitely fall short of meeting up with their set financial goals, becoming less helpful to their customers, and may soon become obsolete.