Digital transformation is revolutionizing sectors, and the banking industry is no exception for this transformation. As technology is advancing, bankers are interacting with customers at every level from marketing to product step and then finally to the payment phase; digitization is the key to an organization’s survival.
However, the consumer lending industry is slow in adopting the transition from legacy platforms to digitized environments. But, as this industry is loaded with data, involves long process times and is driven by robust compliance requirements, it becomes essential for this industry to move away from manual process to an automated one. Enabling digitization will further improve customer experiences and also change the core of the lending industry.
• Leveraging the technologies
AI and Cloud Computing are playing a significant role in transforming the consumer lending industry. Gartner also states that by 2020, banks will offer advice by using AI chatbots that can learn about consumer’s user habits. Also, cloud computing platforms are allowing rapid deployment of services by connecting and configuring virtualized technology resources, augmenting faster time to value and thereby reduce the cost of ownership.
• Firms are leveraging AI and Cloud Computing
While lending firms are working in the direction to enhance customer needs, they are also leveraging AI to deliver context-aware services and giving it a more personalized touch to its consumers. The mortgage lending scenario is loaded with data, which makes it an ideal destination for AI algorithms to analyze customer behavior and also predict the buying probabilities, assisting lenders with in-depth insights for informed decisions.
• Cloud is significant
It is advisable to move the organization’s operations to a cloud platform to include higher participation level across various businesses, access to relevant data and improved collaboration across time zones, enables speedy and accurate decision making. The data stored in the cloud platform is scalable, centralized and facilitates accurate data and security while preventing data theft. Centralized data access streamlines document management lifecycle and enables transparency with the borrower, lenders and also the regulators.
Consumer lending business can undoubtedly leverage the effect of AI and cloud computing on the companies. As cloud platform can store a massive amount of centralized data and AI can access this data to develop better business strategies, both these technologies complement each other and can jointly lead to the next wave of technological disruptions.