Don’t worry, automated digital lending is easier than you think

The preferences of banking customers are changing more quickly than ever. Why should they expect less from business lenders when almost anything can be done online in under twenty minutes? You can provide the same individualized experience if you automate your digital lending business with the right partner.

Steps to automated digital lending

1. Establish immediate and long-term business needs

Determine the precise tactical and strategic functions your company will require before making a commitment. Don’t worry if you’re unsure of your demands at first; just ask lots of questions during demos to rapidly start understanding what you can acquire.

2. Choose a Lending Automation Technology Solution

A previous entry barrier for many financial institutions pursuing digital transformation was a lack of time or money. In-house platform development can be costly and time-consuming, and it almost certainly calls for the hiring of additional personnel for implementation and ongoing maintenance. It is simple to do when working with a provider of automated lending technology solutions.

Make sure you are aware of the support you will receive from the provider both during implementation and going forward. A good supplier won’t just abandon you after the sale; they’ll assist you in resolving any issues that come up.

3. Process Evaluation

You must assess your existing procedures as well as any new ones you must put in place for the origination of digital loans. Consider your current problems and the potential benefits of a digital lending system. Equally crucial is taking into account your areas of success. How can you improve your efficiency while maintaining these positive aspects?

You should also speak with a compliance specialist who is knowledgeable about all applicable local, state, and federal laws. By making it simple to maintain documentation and streamlining the loan decision process, automated lending technology enhances compliance. However, it’s still crucial to speak with an expert about the specifications for your particular needs.

4. Configuration and Implementation

What really distinguishes mediocre platforms from excellent ones is the automated lending platform implementation and configuration process. A top-notch supplier makes it simple and does the labor-intensive work on your behalf. With the least amount of disruption to your business and customers, Accrue offers a team of experts to assist you in getting up and running quickly.

5. Observe and correct

Employees may need some time to adjust as they move from a manual loan processing strategy to a digitally automated platform. You might discover that small steps are the most effective.

In a similar vein, some of your clients might not be open to change. You might want to offer them the choice of completing a paper form. You can still enter their information digitally and move on to automated underwriting after they’ve given it to you.

Many lenders start with a “semi-automated” decision process in which they check rejected applications for errors until they feel confident using artificial intelligence (AI) technology. AI has the advantage of enabling the application of multiple risk models at no extra cost and without the influence of human bias, improving the efficiency and fairness of automated decision-making.

6. Enjoy the Rewards

The capability to monitor and analyze large amounts of data is one of the main advantages. With this capability, marketing efforts will be enhanced along with regulatory compliance, operational costs will be reduced, inefficiencies will be found, and human error will be eradicated.

The effectiveness of automation will allow you to process a lot more loans. Once you allow customers to self-serve online, you’ll spend a lot less time corresponding with them. While lenders benefit from decreased redundancy, increased output, and a significant increase in ROI, borrowers can get faster approvals and avoid the hassle of paper documents. Branch staff will have more time to assist clients who do need in-person assistance, enhancing the overall user experience across all channels.

Conclusion

Automated digital lending is an incredibly powerful and efficient way to grow your business. It can provide your customers with the convenience of managing their loan application process without needing to go through a bank or other financial institution. By following the steps outlined above, you can easily implement automated digital lending into your business and reap the rewards of increased customer satisfaction and higher return on investment. Contact SMARTOSC Fintech for further advice and implementation of this solution.