The lending industry has traditionally conducted operations through face-to-face consultations or via telephone appointments, but with technology changing the way almost all industries and sectors operate, it is inevitable that the loaning industry will reap these rewards.
More and more, we are seeing lenders switch to online platforms, with some lenders even basing their operations entirely on the web. While IT and internet technology used to give some concerns and doubts about their financial safety, these fears have been greatly reduced, due to advancements and strides in cybersecurity.
One of the key areas of technology that lenders and creditors are benefiting from is automation. By developing intricate algorithms orientated to streamline lending and online interactions, lenders have been able to drastically cut costs, and even scrap physical departments entirely as they are now no longer needed. A key aspect of this shift towards automation is that this will also, in turn, cause a shift in the power centres of lending organisations. Typically centred on risk, credit and operations, this will now shift towards data and technology.
The Rise of Peer-to-Peer
Peer-to-Peer lending is a form of crowdsourced lending that connects borrowers and creditors with each other without the need for intermediaries and conventional loan processes. Peer-to-Peer fills a market niche for start-ups, SME's and private individuals who need to receive fast cash online. As the Peer-to-Peer business model develops, we can expect to see more and more of these crediting firms online.
With digitisation fast changing how consumers interact with their clients, lenders and creditors have been taking advantage of engaging their market through online social interactions and marketing, allowing for greater outreach, a better understanding of their customers and a more effective and streamlined service.
A key advantage for consumers looking for loans online is that there are ample resources to check and compare loan rates against each other. While it is possible for consumers to do this themselves, there also exists plenty of intermediary companies that will conveniently and easily list loan prices and quotes from a variety of different companies.
Challenges of digitising the loan industry
A key challenge of shifting towards digitisation is reaching rural areas and reaching the elderly. Rural areas typically do not always have the infrastructure to support these systems, and the elderly often have trouble understanding how to use advanced technological devices such as a tablet or smartphone. It is important that accessibility is always kept in the back of lending and crediting organisations minds, and even then, a more human touch will sometimes be needed.
For more information on lending and technology, reach out to a company that offers fast cash loans online.Share