Financial Innovations: How technology has changed the lending industry

Technology has been booming in the last decade. Rapid developments in technology have pioneered some of the greatest advancements to date. The financial sector is a prime example. From improved securities to faster transaction times.

The crazy thing is…

We are just at the tip of the pinnacle. With advanced securities being worked on daily, and elusive blockchain currencies hitting global markets – who knows what the next few years have in store for the financial industry. Technology is only going to keep evolving over the next few years. It’s better for businesses to get used to the change now rather than get left behind. If you want to keep up with the competition – technology is the answer.

Through this article, we will be going through just a few of the ways that technology has helped with the savvy improvements in the lending industry, and how it directly impacts you. Here are some tips to consider if you’re looking to change the way you do business:

Easier for consumers to apply for urgent loans

Let’s face it – we all dread going to the bank. The long queues. The overly formal attire.Itss nerve wracking in its own strange way. Not to mention it takes forever and a day.

Which is why our first, and probably most appreciated technological advancement in the lending industry is the ease of which consumers can now apply for loans.

No longer is it a hassle, a time investment, or a procrastination for something that you know needs to be done. Thanks to mobile and SaaS advancements, consumers can apply for loans from anywhere in the world.

As long as you have a mobile device and have internet access – you can apply for an online payday loan.

Consumers get results on loan decisions far quicker

Taking out a loan is nerve-wracking. Chances are you are taking out the loan because you have urgent bills to pay and no other choice. Back in the day, it used to take weeks to get an approval on a loan, due to slow infrastructure.

Nowadays, however thanks to technology – everything has changed.

Bank Of America is a prime example of what new and improved technological infrastructure means for the finance industry.

Consumers can now take out a loan from between $10,000 to $250,000 directly from the Bank Of America phone application.

The best part about it?

The loan will get approved (or declined) within 2 business days.

The same mobile application also makes use of IoT to help consumers understand what responsibilities they will have to face after taking the loan out. From the interest they will need to pay, how much will be billed each month; pretty much everything you need to know about taking a loan. Without ever having to step foot in the bank itself.

Julie Kimmerling, head of Chase Business Quick Capital stated, “In the past, it could take weeks if not over a month for decisioning, and we’ve taken that down to near real-time decisioning. They don’t have to submit any additional documentation.”

This is all thanks to implementing AI (artificial intelligence) into the loan decision making process. Which helps banks streamline risk assessment, which plays a major role in the decisioning process when applicants apply for loans.

Don’t forget about the never-ending paperwork

When we think about our loan getting accepted, or declined – the first image that pops into our heads is some strict person stamping their approval on a one-page pamphlet.

The truth?

Back in the day, the amount of paperwork that needed to be handled for each applicant was mountainous. Which is one of the reasons why getting the results of a loan used to take so long. But thanks to AI, and general computing applications can be filled in just under 30 minutes. Compared to the usual 25-hour haul.

Helps banks build a better relationship with their customers

Okay, so here is one you were not expecting. Advancements in technology actually helps banks to improve their working relationship with customers before, and after loan settlements.

Thanks to the advancements in technological financial structures, banks are able to quickly help those who are in need. Lately, banks such as Wells Fargo have started paying more attention to the financial concerns of individuals, and SMB’s that need a loan.

Through doing this, they are able to provide a more thorough analysis of the best loan suited for that particular lendee. Which in turn means they can provide a streamline financial service that helps their customers out.

Change the way you do business

Most people fear technology – but this is because they don’t realize the benefits behind it. Instead of avoiding technology in your business, you should embrace it. You’re more than likely to find a way or two that technology could help your company.

By implementing technology, you will save time and money. Not only do these tips make it easier for consumers, but it also streamlines business for banking organizations. Which at the end of the day means more green in their pocket. It’s a win-win situation for everyone involved.