There is hardly any aspect of modern lifestyle that is untouched by mobile phone and allied technologies. Even financial lending companies are mobilising the sector at a fast pace due to mobile-obsessed times we live in.
Lending businesses are better off by leveraging the avant-garde capabilities that the culture of mobility brings along as it promises a streamlined workflow and reduced turnaround time.
Mobility is bringing around significant transformations across the board in the lending sector.
Businesses want to ensure that customers can manage and take care of their wealth management, capital markets, banking or e-commerce transactions through mobile devices, whenever they want, from anywhere in the world. Customers, on the other hand, want to be in complete control of their funds while they invest their money to grow with reliable and useful financial services.
Thus, the onset of mobility in the lending sector has bright about a significant change in the working style of the industry.
How Mobility Can Transform the Lending Sector?
1. Loan Origination Process
Traditional loan origination process incurred troublesome paperwork. After configuring a lead, a lending correspondent gets in touch with them to complete the application paperwork and gathers documents for underwriting. These documents are then submitted to the loan officer. If the documentation is incomplete, the correspondent retrieves them from the applicant to avoid rejection. Loan application assessment took days due to manual verification process.
Applicants often found it hard to track the application status resulting in flawed customer experience.
The advent of mobility in lending origination process has eliminated the need for arduous paperwork. The method of collecting documentation and credit assessments can be quickly executed with desirable transparency by lending companies leveraging the use of mobile tech. Integration of new-age e-KYC solution simplifies the onboarding process, ensuring that the verification process is completed in a fraction of seconds.
Thanks to lending mobility, sales agents can execute customer onboarding in a fraction of time that was incurred before the tech revolution. It is easy to fill up a form of borrower’s information, upload required documents and submit it online for the staff at the lending company. The automated nature of the process makes it error-free.
Customers appreciate the self-service nature of mobile lending apps, as they can apply for loans from anywhere, at any time. They also benefit from constant updates about the status of their loan application.
2. Credit Scoring of Applicants
The robustness of credit scoring is determinant of the success of the loan disbursal process. Lending firms rely heavily on the credit score of the borrower during decision making. The problem remains that in the case of emerging economies where financial inclusion is the motto, the availability of adequate credit history can be problematic. Thus, lending companies can not count on traditional credit scoring data like CIBIL score, which makes it difficult to verify their creditworthiness.
Embracing mobile solutions allows the use of customised credit evaluation system leveraging new-age data to evaluate a prospective borrower’s ability to repay when processing their loan request.
Several data points across personal, financial, and social media make up alternative data that is used to evaluate a customer’s creditworthiness using a custom-made mobile app for the lender. These apps can access a customer’s behaviour based on the data available across several apps they use and even based on psychometric behaviour to bring maximum possible people under the gamut of organised credit. Data backed credit scoring ensures an increase in repayment rates and supports financial inclusion in the economy by facilitating a loan to people with no credit history.
3. Loan Repayments
The exercise of loan collection is an integral part of the lending lifecycle. Delinquency resulting from the absence of repayments can disrupt the ROI of the lending business.
However, modern tech comes to the rescue and allows tech-savvy customers to make their repayment through their mobile apps. Business Correspondent level the gap between financial institutions and their customers. They work with mobile devices integrated with the core banking cloud application to perform transactions on behalf of a customer seamlessly, instead of managing paperwork like collection sheets to update repayment status.
The app could also serve as a knowledge base for loan officers for answering customer queries about the repayment schedule, previous payments, pending balance, etc. Offline sync allows smooth synchronisation of updates on a loan officer’s device. Technologies like built-in GPS tracker helps the lenders keep track of a field agent’s real-time location and ensures prevention of any potential frauds. In addition to speeding up the repayment process, it enhances the operational efficiency of a collection officer. Customers are kept in the loop through frequent notifications about the loan repayment status.
More and more modern businesses are embracing the use of mobile workforce for increased productivity. However, a large part of the lending sector today is still stuck with tedious traditional methods. In recent years, there has been a visible advent of mobile devices, but more and more players need to leverage the efficiencies the mobility brings to the lending sector.
Mobility has transformed the way device owners consume information or products or services. They are at liberty to choose the place, the time and the way to connect with businesses. Mobility powered businesses can also reach their customers anytime through channels preferred by the customers. Real-time transactions are empowering the global payment industry. Borderless connectivity promotes higher financial inclusion thanks to mobile tech. Integration of online payment services into lending platforms have enabled low-cost, safe and efficient cross-border payments for businesses and individuals.
Mobility straightens the various inefficiencies in the lending sector. The era of traditional loans has been transformed entirely through the latest technological advances. Mobility reduces the overall time consumed in the loan application process, allows transparency for the applicant, takes the workload off the shoulders of the staff, enhances overall user experience and much more.
If you are looking for a mobility solution for your financial lending business, Finezza can be your ideal partner. The unique software solution can be customised for various loan types and adds convenience to the process of lending. Finezza provides 360-degree lending solutions by offering a suitable mobile platform to integrate with the lending business.
The mobile platform provided by Finezza is designed to enhance the client-side experience of the lending company as well as facilitate ease of use for the loan officers. The customisable nature of the platform ensures that it abides by the regulations set by the lending company, further enhancing the outcomes with the help of its powerful algorithms and AI capabilities.
Let us know if you would like to harness the power of mobilisation and reap better ROIs for your lending business!