Digital Lending: A New Horizon for Modern Banks

Banking CIO Outlook | Tuesday, August 27, 2019

Gone are the days of heading down to the bank branch to get a personal loan from the bank manager, which can at times be tortuous and time-consuming. How about the entire process shaping into a digital realm?   

FREEMONT, CA:  With the advent of technology, the digital era is getting smarter and informative. Mobile phones are rapidly changing the financial service landscape, and the availability of mobile applications for any financial service aims to reduce the friction in the purchase journey of customers, so is the case of lending services as well. In the next few years, smartphone applications are expected to drive a majority of personal loan purchases in the world. More and more lenders are using smartphone platform, and firms are in efforts to tap a large pool of customers who wants loan services but do not want to endure a painful lending journey. Customers love the idea of digital lending, and so do financial institutions!   

Mobile applications make purchase process extremely simple and quick with which individuals can get the financing they need with a mere tap on their mobile phones. Seeking out digital lending has several benefits to offer and ends up saving a lot of time for the customers. With the brilliant combination of technology and mobile phones, the worries related t loan lending procedure is now over. Today lending firms and other financial service firms have joined the race of mobilizing the sector, thus, best serving the demands of today's smart phone-obsessed customers.

The useful features of a mobile lending application allow users to apply for loans without making round trips to banks quickly. From a single platform, they offer end to end solutions, including loan eligibility application approval, documentation, disbursal, to list a few. In these ways, the apps provide comfort and reliability to the users and allow them to bank online and request the money. The loan lending apps can be used for various purposes like personal loans, private institute loans, to commercial lending. Once the borrower submits the loan application within the app and the admin is positive about the status of the borrower, the credit is granted.

Financial institutions who are keen on getting a mobile app developed, ensure to offer accountability for users along with service and speed. Customers often choose a firm that has an excellent online reputation. They tend to cross-check the information provided by the brands, and they tend to initiate with the process only once they are particular about it. Hence, as a company, investing efforts in gaining accountability to attract users is inevitable. For gaining attraction, the loan lending firms must offer excellent customer service. The borrower always wants to be assured that the chosen brand will take care of them. If one is not providing satisfactory customer service, the borrower will certainly hesitate to apply for the loan. Speed also matters the most to the online applicants. For fast processing, it is advised to work with online mortgage company collaborating with tech giants.

A complete digital procedure will save time for end-users, and the user-friendly app acts as the cushion to navigate lending services with ease. A mobile app gives end users the provision to request for a loan in minutes, checking with eligibility criteria, and tracking the status of the loan application. The apps are also addressing support inquiries in a proper time and routine, which adds benefit for the users.

Faster decisions, lower processing costs, and higher revenue per loan can no more be surprising as digital lending is seeking attraction. As mobiles increasingly become the go-to for consumers to perform any task, the demand placed on brands to design intuitive experiences on mobile devices also grows. With devices capable of so much, designing smart lending cannot be an afterthought.

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