bankingciooutlook

Instilling Efficiency in Financial Institutions

By Banking CIO Outlook | Tuesday, February 05, 2019

FintechEffective technology investments are hallmarks of efficient and successful financial institutions. Regulatory, security and customer demands are constantly rising, and only the right information technology solutions can help achieve business goals. But a clear understanding of today's customer can help correct the inefficiencies

Online Applications

Online applications have become the norm for simple bank transactions. But they are often time-consuming and ask for information that the financial institution already has about the prospective customer. In a world where convenience is the priority, to fill out the applications drags the processes unnecessarily and increases the time consumption. This perception of inconvenience could lead customers to abandon the application forcing the financial institutions to invest more resources to convert or retain the customer.

Seasonal and Propensity based Targeting

Conventional pre-approved loan campaigns depend upon customer's estimated propensity to accept a loan and the seasonality of the product being promoted. Budget constraints require institutions to limit the audience and number of campaigns they can hold, and a small number of creditworthy customers are targeted. Communicating to the mass is not an effective way as using timed campaigns based identified requirements. Streamlined processing technologies are needed for greater back-office efficiencies.

Automation

Technology equipped with automation features is enabling financial institutions to use their time and resources more efficiently, serving more consumers and increasing their business. Automation integration can reduce the work of migrating data, allow nurturing prospective leads more effectively.

Activation Instead of Application

Leveraging technology to show the full array of leading products is a second opportunity for efficiency. Instead of asking customers to complete lengthy applications, institutions can use credit score and other customer information for customized, perpetual pre-approved loan offers.

Check out: Top FinTech Solution Providers - 2018 (SynpulseSurecompSpendLabsRevation Systems). 

Faster Loan Processing

With automation and loan activation financial institutions can significantly reduce the days to fund without adding more resources. To further add values, loan officers are readily available to provide help to customers with applications that need detailed evaluation, including those not automatically approved by the system.

The growing complexity of challenges of financial institutions needs new approaches that focus on providing improved customer experiences. With technology back ending the processes, these on-demand realities can be achieved to attract and retain customers.

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