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SOC 2 compliance indicates that a corporation has strict rules and procedures in place to secure sensitive consumer data, including bank account information and credit scores.
Fremont, CA: Well before the COVID-19 outbreak, the lending market was rapidly changing as technology created new business channels and social developments forced traditional lenders to adapt. With brick-and-mortar branches declining in-person service and clients having to work remotely because of Coronavirus, internet lending has become a critical route for reaching customers.
For lenders that need to react to these drastic changes and prepare for a digital-first future of banking, a business lending platform is typically the best solution. When selecting a platform, lenders should consider the following four factors.
Smooth user experience
The internet has now become an integral component of our daily life. Customers who are used to using the internet in their personal lives are more likely to expect a smooth experience when completing their activities. Prospective borrowers may seek loans from other financial institutions if the lending process is inconvenient and clumsy. Online application processes should be simple to use, and relevant information should be readily available. The responsiveness and speed of a lender can make or break a business owner's choice to apply for a loan.
Security and Privacy
Security should always be a core component of any commercial loan organization. At the absolute least, a service provider should be SOC 2 certified. SOC 2 is a type of audit that applies to any business that saves consumer data in the cloud. SOC 2 compliance indicates that a corporation has strict rules and procedures in place to secure sensitive consumer data, including bank account information and credit scores.
It's critical to know how long it'll take to get a digital business financing platform up and running. Though speed should not be the only consideration when choosing a platform, the speed with which you can execute it might have a significant impact on your short-term company prospects. Once the platform is in place, speed should also apply to making modifications to it. Knowing how capable a platform is at bringing out changes depending on company demands should be one of the most important considerations you make when selecting a platform.
One of the most challenging aspects of corporate lending is risk management. Check to see if the platform you're considering can incorporate all of your risk management settings. An online lending platform should be able to assess a single client or an entire portfolio in real-time, taking into account data such as cash flow. In reaction to changing risk factors, your business lending platform should be able to alter risk policies and guidelines swiftly.