To meet the growing demand, and simply survive, established financial institutions, as well as early-stage fintech companies, need to adopt new technological capabilities and refine future go-to-market strategies. However, some of them usually try to extend the life of outdated approaches and legacy systems, losing sight of the many benefits to their business.
Launching new lending products means not only looking for new customers who will apply for loans. This process also requires ensuring that these customers are qualified enough to stay away from all possible risks and unlock more market share while doing business safely.
Let us see what can slow down the lending business, what should be replaced, and what even needs to be completely disposed of to launch new loan products faster.
Despite the technological development of the financial sector and lending, in particular, many borrowers were dissatisfied with their lending experience. But lenders themselves also have pain points as they face the shortcomings of legacy systems and outdated approaches. Let us consider what can overshadow the process of lending.
Use of separate platforms. If loan officers have to resort to several separate platforms to carry out the lending process, and run multiple programs for different functions, this will significantly complicate and delay the process. And since fintech companies are now offering end-to-end solutions, such as an all-in-one platform where every stage of lending can be done, it would be unforgivable not to take advantage of one of them.
Keeping forms in a mess. Each type of loan requires its own application form, so it is very important that the officer can immediately find and provide the appropriate one. Using a digital platform, where all forms are grouped and assigned to a particular type of loan, it is easy to find the right one and send it to a client from there.
Loan application queues. Credit institutions that do not take advantage of modern loan origination software can face the problem of accumulating application forms that take a long time to be processed manually. In addition, applications with missing information are returned back and the process is repeated. Whereas the digital form cannot be submitted until all the required fields are completed.
No electronic signing. While most processes have been digitally transformed, some lenders still require borrowers to come to the office for the final signing of paperwork. This causes inconvenience and delays funding, resulting in a negative customer experience. At the same time, electronic signatures are not only fast and convenient but also reliable. The client signs the documents and sends them back to the bank in a matter of minutes, which reduces the waiting time for financing.
Human errors. One of the biggest pain points can be inaccuracies and mistakes made by loan officers during the manual processing and entry of a wealth of information. And while some errors may be completely harmless, others can affect the loan decision and lead to the fact that solvent applicants will not receive a loan or, conversely, scammers will get it because some important information was missed.
Double data entry. When loan officers manually enter customer information that already exists in the database, they waste time. Worse, data duplication can create havoc that can end up costing a business a lot of money. With the help of Saas software, you can instantly find all customer data in the database, scan them for duplication and clean up redundant information, if any.
Disparate digital solutions. If a mobile loan app does not sync with the lending platform, employees will have to manually import mobile loan applications. This not only frustrates the consumer but also increases the chance of data entry errors when using multiple systems at the same time. A sophisticated all-in-one lending platform combines tools into a single, intuitive ecosystem where loan officers can perform required tasks and communicate directly with their clients.
The above pain points really interfere with carrying on business in a proper and efficient manner. However, some decide to put up with them, believing that the transition to modern systems is a long and expensive process.
Indeed, creating a complex lending product from scratch requires finding and hiring developers with special experience, a considerable investment of time and money, and subsequently staff training and maintenance.
Fortunately, there are modern no-code lending solutions like Neofin that, being part of an agile approach, are easily and quickly implemented in a business and do not require deep knowledge in the field of programming or employee training.
The customizable digital platform consists of modules that perform various functions for different types of lending activities. Let us look at them separately.
Loan Management
This module is designed to effectively manage all clients and leads, track their history, assign tasks and monitor their completion. In addition, through an intuitive admin panel, managers can send AI-backed notifications and run analytics.
Decision Engine
The credit decision-making module is an evolutionary product that has reduced the waiting time for a loan to be approved or denied from days to minutes. What's more, automated data analysis based on more than 150 types of criteria pre-set by the business owner is more accurate and far superior to manual verification. As a result, the company makes the best credit decision, protecting itself from association with bankrupt, insolvent, and money-laundering clients, in minutes.
Loan Accounting System
This module stores and organizes all information about loans. The loan officer can manage all available loan programs and track performance from one secure environment.
Digital Onboarding + KYC
This module is used to identify and verify new customers and includes such tools as video verification, document recognition, digital application forms, and AI-assisted data analytics to enable bank employees to onboard new customers remotely.
Read this article if you want to learn more about AML and KYC solutions and how you can benefit from adding them to your lending process.
Debt Collection
Integration with various ways of communication allows bank employees to contact borrowers via SMS, telephone, or video communication directly from the digital platform to remind them of debt repayment. Also, using a user-friendly panel, a debt manager can set up a collection schedule, and monitor the fulfillment of obligations by debtors in loan records.
APIs Integrations
In order to perform all the main lending operations within one end-to-end platform, a module is used to integrate the necessary APIs. This means that any stage of any type of lending, be it a loan or a BNPL, can be completed with a single tool, without the need to go to different, unrelated platforms.
Site Builder
The key advantage of no-code software is that it allows the average user to build an application of ready-made blocks tailored for different functions. We are talking about the most customizable website template, where not only a general look, but every detail is adjustable.
Mobile API
A corporate mobile application is accessible to all your customer services on the go. API methods allow you to launch a mobile application with custom functionality quickly and with minimal effort. Add loan application features, BNPL purchases, and credit status tracking to provide the best user experience.
To remain successful and competitive in a fairly dynamic financial business, owners sometimes have to act decisively. After all, every technological breakthrough can determine a new direction in the development of the industry.
Neofin, as the end-to-end loan automation platform, allows the launching of any new loan product within 1 hour and offers mixed pricing combining subscription and pay-as-you-go models. Start a free trial today or speak with our team if you have more questions about the product.
