Top 4 digital lending trends for 2023 banks need to know
Are you a bank looking to stay ahead of the curve? Then you won’t want to miss out on the top 4 digital lending trends of 2023! Find out what banks need to know and how to stay on top of the game in the ever-evolving world of digital lending.
1. Solutions Based on Blockchain
Frequently, when we consider blockchain, our thoughts immediately turn to the erratic cryptocurrency market. Nevertheless, this isn’t the only area that loan companies in 2023 should be focusing on. Instead, focus on the technologies involved. Several applications for blockchain exist today and may do so in the near future. Decentralized ledgers might be used to track payments, peer-to-peer networks could be used to give loans, and encryption technologies could be utilized to secure customer data.
2. Identification Verification Services
Each digital finance solution must include ID verification services. AML and KYC rules are closely related to the simplicity of use and efficiency, all of which are essential for meeting regulatory requirements and ensuring that customers are consistently satisfied. Smoothing out the ID verification process is a positive move for businesses aiming to enhance their products because it not only increases brand trust but also minimizes the danger of fraud.
3. Embedded Financial Services
Embedding financial payment solutions into goods is a natural element of businesses’ efforts to create more integrated products this year, even while embedded finance has been around for a while—think Klarna, Clearpay, etc. This is particularly true when taking into account a recession, when people may be more prone to choose such choices to stretch the payments for expensive things over a longer period of time. For businesses, this implies they may need to reevaluate how they are marketing their goods and whether embedded finance needs to be a component of the solution from the start.
4. The start of the era of “AI everywhere”
In addition to credit scoring, AI will increasingly be used for understanding borrower behavior, proactive credit product promotion, lending process automation, portfolio rebalancing, staff performance monitoring, risk appetite adjustment, and real-time decision-making at every stage of a loan life cycle.
In conclusion, it is clear that digital lending is a rapidly growing trend in the banking industry that will have a major impact in the years to come. In order to stay ahead of the curve, banks should consider the top four digital lending trends for 2023. With these trends in focus, banks can ensure they remain competitive and can provide their customers with the best possible services. Contact SmartOSC Fintech right now to get more advice.