Use Of Technology Has Led To The New Age Money Lending
In this modern day and age, money lending and technology goes hand in hand. Gone are those days when people used to stand in large queues in a bank while the clerks at the counters sift through the manual entries in large ledger books looking for a particular account of a particular customer. Now, with the use of technology banking industry has seen a notable transformation in almost all areas of their services such as:
- In their services and it quality
- Designing of better financial products
- Better and more liberal lending policies
- Safer and faster loan disbursal and approval process and
- Transaction of money within the shortest possible time over the wire!
All this has resulted in more customers who are happy and satisfied having their purposes met easily, effectively and quickly.
Money lending and investing were typically a part of the traditional banks being their primary source and chief revenue streams. However, over the years and with the use of more and better technology in money lending services, it has created welcome and appreciable disruptions in this specific segment of the finance industry.
In fact, the use of better technology has had a direct effect on the margins and volumes of the traditional banks. This is because there has been a rise of different new age financial services and these are all major digital players. Now you will find different money lending sources that are easy to access offering a diverse and wide range of financial products that are better designed to suit all your different types of financial needs. You will see alternative money lending sources such as:
- Peer to peer lending that is most commonly known as P2P lending
- Several online money lending sources such as https://www.libertylending.com/ and other reputed and reliable ones.
These sources being safer and more effective, has also resulted in the rise in the level of expectations of the borrowers vis-à-vis the marketplace. The digital experiences are as good as it is in any other type of industries.
In addition to that, while the rate of interest as well as the cost of borrowing has also become more transparent and acceptable which are the two most significant factors for the bowers to consider.
The common inference of using technology that are new and better in money lending service is that all primary considerations of the borrowers have been well dealt and met with ensuring that the customers have a better experience overall.
Help in fraud detection
When it comes to money lending and borrowing, there are a lot of chances of fraud in it. However, the use of digital technology has also transformed the process of fraud detection making it better, more effective and fool proof. Ideally, in the money lending field, fraud detection is an important aspect that not only helps the banks and financial institutions to survive and grow, but it also helps indirectly in different areas of the service that includes:
- Speed of lending
- The quality of service and
- The level of transparency in the transactions made.
All of these are vital for any money lending source to be reliable and reputable in the market to gain more organic customers to their business. This will affect their business revenue and profits which is also very important for survival this fiercely competitive money lending market.
- Ever since the money lenders, banks and non-banks have started to take advantage of these newer technologies, it has also allowed them to make their engagements with their customers simpler and faster.
- These digital lending solutions have also made the lending process more convenient since the papers are now converted to digital documents.
- It has also helped the money lending organizations to automate most of their processes that have made borrowing money for the consumers much more efficient, painless and a quick process.
In fact, the technology has bettered the traditional way of consumer borrowing process.
A better borrower experience
Use of technology has helped the banking and financial institutions to make all necessary improvements in the process so that the overall borrower experience is enhanced. According to Nelito:
- The digital platform has transformed the consumer loan industry in terms of efficiency, greater simplicity and transparency.
- This effective solution has helped the banks and the non-bank alternative lenders to make an accelerated growth in the size of their portfolio that in turn results in the increase in their revenue opportunities.
- This innovative lending solution has allowed all the lenders to leapfrog over their traditional solutions and ensure that they provide their customers with a faster and very convenient service.
In short, the advancements made in the digital money lending space have in fact made this an ideal destination for all banks as well as the NBFCs or the Non-Banking Finance Companies of the country of all sizes.
To sum up
With the development and use of the digital lending platform, the capability of the banks and NBFCs has enhanced to provide their services to more and more customers within a short time. Apart from the faster pace achieved, the banks and non-banks can now concentrate now more on the quality of tasks and services to build enhanced customer relations. In addition to these, such technology and digitization of solutions help the financial institutions to:
- Reduce the cost of loan origination
- Significantly reduce the number of back-office inquires
- Have a complete 360 degree view of all of their customer interactions
- Effectively view 100% of all data analytics in one single platform and
- Have the ability to plug and play with multiple connectors.
All these benefits and features of the new digital technology in money lending have provided the financial institutions and banks with immense opportunities to improve their productivity. They can now ensure better, faster and proper closure of more number of loans. This in turn results in their increase in revenue on each loan. As the entire process is now automated, the services have become more economical, efficient and convenient for both the money lenders as well as the consumers.