Banks, credit unions and other lenders want solutions that enable agility in the dynamic market conditions. Though temporarily, some lending businesses have embraced the work from home culture. The industry has faced a new kind of challenge.
The industry leaders have brainstormed new ideas and trends to be proactive and flexible. They are organizing and attending lending conferences in 2020. You must attend at least one such conference in 2020 to learn about new trends.
The following are the four latest lending industry trends that can help you run a profitable business.
Utilize and integrate physical and digital channels
The ongoing crisis has knocked physical channels back leaving a huge impact on the business. Physical channels allow in-person activities which are not always possible with digital channels.
However, it is possible to utilize digital channels without complete reliance on physical channels. Lenders who have completed their digital transformation, they are satisfied with their significant results.
Digital executions are faster and error-free. However, digitalization works when both parties are equipped with digital capabilities. You can start and complete applications 4 times faster. It is possible to do significant business in this time of crisis. The integration of digital channels and physical channels will do wonders for your business.
Unified Lending Platform
If you take part in a conversation at a lending conference in 2020, you will hear leaders talking about the benefits of using lending platforms. Most of these platforms focus on borrowers. However, the recent surge of refinancing has highlighted a different benefit of using such platforms.
When the demand is high, you should use a unified platform for different types of loans. Using one platform for auto loans and another for mortgages is not a good idea. Sometimes the demand for auto loans is high and sometimes more people apply for home loans. A unified platform allows you to manage different types of loans.
Personalized and effective marketing
Just as banks use the applicant’s incomes, liabilities, credit report and other data to determine whether to approve or reject the application, they should also use data for effective marketing on digital spaces. Use data to target potential borrowers in highly personalized manners.
When the customer is pre-approved for a loan or credit card, send an email with an offer. Let them click a link and check available products. There you can answer the customer’s questions and show a suitable product. Let the customer know how you can customize that particular product. Be very specific.
Efficiency with unstructured data
Examining data in different forms using optical character recognition is the latest promising trend in the industry. Whether it is an image file or an account statement, you can find relevant data points using digital lending solutions. You can put these data points correctly in fields.
This will help in the decision-making process. You can speed up efficiency and improve the customer experience. Find an outstanding technology partner for your lending business.
You can learn about more new trends and technologies. Get details of upcoming lending conferences in 2021.