The roots of the lending business can be traced back to Babylonian history in the 18th century. In the modern 21st century, everything has taken a digitized form, including lending platforms.
Financial technology, popularly known as fintech, has changed the map of the lending industry by introducing artificial intelligence and automation into the mortgage and lending process. Automation and the modern lending procedure have also been made seamless with a minimum human intervention that has helped businesses and customers explore lending possibilities like never before.
The current market, economy, and changing customer demands have made digital lending platforms a necessity for all. This significant change had gathered momentum after the COVID-19 pandemic forced the world to operate remotely and digitally from their homes.
While many businesses know they need to adopt a digital platform for loan funding and mortgage procedures, they do not know where to start. This article will cover some essential elements for your AI digital lending platform.
Essential Elements To Look for In Your Digital Lending Platform
Integrating just about any digital lending platform is not the right way to go about it. Factors like what the platform offers to you and your clients, compliance with existing regulations, user interface, and configuration must be considered before selecting an AI digital lending platform. If you are looking for a digital lending platform, look for the following elements.
Seamless and Improved Customer Experience:
One of the main reasons for the growth of digital lending platforms is customer demand. Gone are when physical meetings were considered crucial for mortgaging or loan applications. These days, consumers prefer to work with financial institutions that have adopted the latest fintech, allowing them to complete the whole application over a smartphone.
21st-century customers look for a seamless lending experience – the same as on eCommerce sites. With fintech companies entering the playing field, a lending platform’s success is measured through its responsiveness and efficiency.
Borrowers are more concerned about the application process rather than the loan source. Opt for a digital lending platform that allows you can run targeted and relevant campaigns to match the best leads with the best account managers. Such AI platforms not only save time but also controls lead costs as it streamlines funnel management with the help of early and direct engagement with the leads.
The Breadth of the Product:
How far can your platform extend to aggregate leads, and from which business sectors?
This is an important question when looking for digital lending platforms. An ideal lending platform must bring in leads from various sources and submit them directly into a common sales cloud. These leads are then matched with a suitable account manager who can guide the borrower during the entire mortgage and loan application process.
It is vital for the AI digital lending platform establish several loan lines across multiple industries.
Seamless Ingestion of Documents and Data:
As we all know, loan and mortgage applications involve a lot of paperwork from both the borrower’s and lender’s end. Hence, look for digitized lending platforms offering automatic data capture that seamlessly creates and manages digital loan files.
Apart from creating loan files, the platform must also be capable of classification and indexing of documents, data validation, data extraction from loan files, and documentation edits.
There is no “one size fits all” formula for lending platforms in the fintech industry. Each lender and financial establishment has its unique clientele, process, products, and market to consider. Therefore, an ideal lending platform must make the existing process as seamless as possible with the help of artificial intelligence and unique algorithms.
While you must take full advantage of automation, there must always be room for customization and manual overrides to configure the system to the lender’s requirements easily. Integrating this new technology should be easy and smooth without taking too much time.
You can ask the following questions to check if the platform meets your requirements:
- Can you configure the platform to match individual user needs?
- How easily can you and your team configure the platform?
- Can your team make changes in platform configuration without influencing its effectiveness?
Adopting a digital lending platform will bring you one step closer to success and give you an edge in the competitive financial industry. Always choose a system that helps you and improves the experience of your existing and potential customers.