As we move from the era of mobile-friendly to the age of mobile-first markets, businesses ought to prepare for the transformation. More salient is the fact that we, as users, are all sworn into the convenience that mobile experiences promise. The fact that mobile traffic has outpaced the desktop traffic in the business world bears testimony to the fact that mobile is going to be the focus of all the developments in times to come. To conquer the mobile-first environment, even financial lending businesses need to understand the prerequisites that it entails.
However, the trend and popularity of mobile technologies in the lending landscape in India is limited, with a bright scope of broad adoption. Most non-banking financial companies (NBFCs) are fast integrating mobile apps into their platforms to enhance the level of customer accessibility and convenience that they offer. In fact, the process of the loan application and evaluation in the traditional sense used to be a cumbersome procedure. But today, the mobile-first loan application process allows borrowers to raise loans without a paper-heavy application process, delays or compromising on their privacy.
Importance of a Loan Lending Mobile Apps
#1. Customers can Access Emergency Funds through a Lending App
The facility of a lending app brings the option of borrowing straight to the finger-tips of the borrowers. Lending apps on a borrower’s phone allow loan-seekers to enjoy round-the-clock borrowing facility, making instant loans a reality. Instant loans apps present an avenue for individuals who need resources in the time of distress. A loan dispensing app integrated into an NBFC ecosystem is a recluse for people who do not want to ask for help from friends and family in the time of distress.
#2. A Lending App can be a Fast-paced Application Process for Borrowers.
It’s common knowledge that applying for loan approval at a traditional lending company is a time-consuming procedure. While the applicants would be expected to visit the institution during office hours, it can clash with the work schedule of the borrower. Applying for loans through a mobile lending app solution is comparatively more straightforward. There is no need for borrowers to visit the lending company physically when they apply for instant loans through apps, which is time-saving. Applicants can log into the app at any time without compromising on their busy work schedules.
#3. A Lending App Facilitates Instant Loan Approvals for Borrowers
Given the high tech nature of technologies they leverage, lending apps speed up loan approvals after the loan application process. Lending apps require applicants to add their credentials and relevant details so that their algorithm can check the applicant’s security and verify their credit score. If an applicant needs to get access to the loan amount faster than by going through the longer route of applying for one physically, lending apps are their best bets.
#4. A Loan Lending App Helps BorrowersTrack their Repayment and EMI Status 24*7
Easy access to a mobile lending app adds to the convenience of borrowers and helps them keep track of their online borrowing. Borrowers can check how much debt is outstanding, the amount borrowed, and upcoming payment dates in just a few clicks. They can even sign up for automated notifications of payment dates and amounts.
#5. A Lending App can Easily Detect Potential Delinquencies on Behalf of the Lender.
Because high rates of NPLs are directly proportional to losses at a lending company. NLPs can tie up their capital in unfruitful projects and raise their overall funding costs. A lending app that features a well-integrated delinquency management solution, effectively streamlining the process of field collections. This not only ensures better recovery of debts but also minimizes NPLs. Lenders can easily track the status of their customers who are to repay the loans through an app. Additional app features like PTP tracking, follow-up tracking, real-time customer information, collection updates, and address locator serve the interest of the lenders.
#5. A Lending App can Optimise the Lender’s Conversion Funnel
Traditionally, loan application procedures were involved, resulting in significant losses to the lender. A lending app for lenders can use funnels to discover friction points during customer usage of the lending platform. A lending app designed to be used by field staff can increase conversion rates. Since it aids paperless processing across all stages of loan processing like data acquisition, screening, and field investigation reports, etc., it reduces the burden on lending teams. Some lending apps automate follow-ups with leads, loan application processing, and easy document upload to engage users too thus optimizing the conversion funnels.
#6. A Lender’s App Facilitates Seamless Loan Servicing
The term ‘loan servicing’ entails all the administration exercises involved in loan sanction to loan repayment. A mobile app for lenders can help streamline the process of customer onboarding, align the collection process for a loan, and even allows agents to track the status of the applications on the move. The app syncs lenders, customers, and collection agents together, thus offering wholesome loan servicing services.
#7. A Lending App can Slash the Operational Cost of a Lending Company
In the absence of high tech solutions like app solutions for lender’s aid, there would be a requirement for the mammoth workforce to meet the growing credit needs of the economy. A mobile loan lending app allows easy accessibility of information and support for customers. With a reduced need for customer support executives, the app helps the lending company save on their operation cost and other resources. A mobile app that aids customer self-service not only reduces the turnaround time as well as the overhead expenses related to customer reach and customer support to benefit a financial lending company.
Lending Management in the Mobile-First World: Perspective
Increased internet penetration and mobile phone usage around us is an evident indication of the shift of lending practices towards mobile apps. Both borrowers and lenders can benefit from the use of mobile app solutions to ease the process of availing and assigning loans, respectively. Markets are flooded with various mobile lending solutions; however, only a few speed up the procedures and match the expectations of modern borrowers.
Finezza is a complete lending life cycle management software that offers a state of the art mobile ecosystem with secure integration options for NBFCs and MFIs. The tool comes with end-to-end solutions like loan-eligibility application evaluation, documentation, and disbursal, etc. and executes them flawlessly through a mobile app.