Thinking about digitalising lending processes? Start your journey here.
Today, there’s an increased need for innovation in the lending market.
Constantly shifting and changing market conditions, increasing competition amongst lenders, and customers demanding fast and simple service means innovation has become critical to stay competitive. This push for innovation has given rise to loan automation platforms. These technologies streamline the loan application process, allowing lenders to meet market and consumer needs.
Pain points in the lending market
Simplifying the home loan process is an age-old industry problem where pain points are felt across brokers, lenders, banks and customers. Add to this the many impacts of the pandemic including a need to pivot to digital servicing, and we see the lending market in need of change with historical processes no longer acceptable.
However much of the technology that a lender relies upon is outdated. Relying on inflexible old code, ridged formulas, middleware, legacy platforms, “digitally manual processes” can make it difficult for a lender to reinvent their lending processes and keep up with the ever-changing financial landscape. This results in most banks and lenders not being able to provide a frictionless digital service to their customers, as staff spend more time analysing disorganised data rather than adding value to the customer journey.
The demand for digital
We are now seeing an unprecedented demand from both lenders and customers for an end-to end digital lending experience.
From a business perspective, it is critical the digital solution delivers a fast, consistent and efficient loan process that enables lenders to reduce approval times that are currently taking up to 30 days. From a customer perspective, they expect simple and fast digital experiences, access at their fingertips and immediate responses from the lender.
To move with customer and market needs, lenders are replacing their outdated technologies with automation platforms, and by doing so they’re able to:
- Speed up the loan application journey with intuitive easy to understand application processes
- Make faster, more valuable decisions through leveraging digital data sources and rulesets that reflect lending policy, instead of enabling the personal unconscious biases that may persist with credit officers
Increase customer satisfaction by reducing the time and anxiety for a customer to secure a loan
Why use a loan automation platform?
Modern loan automation platforms can automate the entire loan process, from application to approval and to settlement. There are multiple benefits for banks and lenders, such as:
- Saving time for employees – removing non value adding activities
- Enabling a faster time to decision for the customer – time to yes
- Allowing customers to receive monies faster – time to cash
With the most modern platforms this process is digitalised using no-code technology,
which can be used by people of any technical ability, making it accessible to all employees.
Get the competitive edge
Loan automation platforms are an essential requirement for lenders to remain competitive and provide value to customers by delivering:
- Increased efficiency: They streamline each step of the loan application journey and reduce the amount of data entry by leveraging digital data from modern APIs and rework that needs to be done, saving time for both employees and customers who are waiting on loan approvals.
- Increased customer satisfaction: Today a large percentage of customers would like to engage with lenders online. No-code automation platforms take this into consideration, as they optimise customers’ online experience and speed up the lending process. Faster loans lead to faster decisions, therefore increasing customer satisfaction.
- Reduced ‘time to yes’ Loan automation platforms process ‘right first time’ applications and reduce time to decision, so customers pursue their goals quicker and with confidence.
From an organisational perspective there are many other benefits to adopting a loan automation platform, including:
- Reduced time to market: Banks and lenders can spend months, or even years, building their own lending platform, which can be resource heavy and come at a cost of millions. An out-of-the-box solution can be implemented quickly and easily, and be up and running within days.
- Enhanced compliance: Loan automation platforms have compliance built in and are flexible, allowing them to continually be updated to meet the financial landscape’s ever-changing laws and regulations.
- Reduced impact on IT: A standalone loan automation platform can connect to core banking platforms, CRMs, and other existing and future applications and ecosystems, which means project and IT employees aren’t caught up in a lengthy discovery and build process.
- Improved visibility leading to bigger picture insights: Loan automation technologies unify customer data. So, rather than having to navigate their way through fragmented datasets, employees are able to get valuable insights and a clearer picture of customer’s situations. This saves time for employees, allowing them to devote more of their attention to providing value for customers.
As technology is advancing, customers expect faster, more enhanced services, and businesses need to be the leaders of this innovation.
Through loan automation platforms, the lending market is able to meet the ever-changing needs of the market and provide the levels of service that modern customers demand.
The adoption of no-code automation technology will only lead to further innovation in the lending market, paving the way for an exciting future.
In the digital age, innovation is at the forefront of every industry, including financial services and lending.