Banks have mastered the digital process for many of their services. Today, it’s not unusual for a bank’s customers to never set foot inside a branch.
But one service that many banks can still improve upon is lending. The journey from application to approval to payments to final payoff is often poorly integrated, which is the result of different systems patched together or incrementally updated in an attempt to improve efficiency and keep up with consumer expectations.
At some point, maintenance of these systems becomes unmanageable. For banks facing these challenges, the best solution is a modern, fully-integrated, cloud-based lending platform that supports the entire digital lending customer journey. Below, we’ll explore how an integrated lending platform improves every phase of the digital lending customer journey.
Step 1: Loan or Lease Origination
The loan or lease origination process should provide convenience, capture all the required information digitally, and set the foundation for a completely digital lending customer journey.
| Capabilities | Bank Benefits | Customer Benefits |
| Digital loan applications | Acquire loan or lease opportunities from consumers already accustomed to a digital commerce experience. | Convenience of anytime, anywhere applications. |
| Digital document capture | Eliminate delays and costs associated with paper documents.Support a completely digital loan or lease origination process with rapid application review and decisioning. | Simplify the origination process. |
Step 2: Loan or Lease Decisioning
With all applicant information captured in a digital format, extensive automation and pre-integrated cloud-based information sources allow banks to rapidly respond to loan or lease requests based on a more accurate assessment of an applicant’s financial strength.
| Capabilities | Bank Benefits | Customer Benefits |
| Workflows, decision rules, and auto structuring | Eliminate manual tasks that delay decisioning.Increase the chances of capturing opportunities through rapid response times. Maintain compliance by consistently applying credit policies and decisioning criteria. | Rapid approvals (often in a matter of seconds) for applicants with good credit.Competitive credit terms based on an accurate and current assessment of an applicant’s financial standing. |
| Fraud analytics | Identify applications that use false information to increase the chances of obtaining credit.Spot applications with a high probability of defaulting. | Indirectly benefits customers by reducing fraudulent applications that lead to defaults and increased lending costs. |
| Alternative credit data | Provide a more accurate assessment of a consumer’s financial standing.Capture more lending opportunities from consumers with no or thin credit history. | Applicants with limited credit history have an improved chance of obtaining financing.Loan terms more accurately reflect the borrower’s creditworthiness. |
| Trended credit data | Use recent credit card payment trends to more accurately calculate lending risk. | Applicants who demonstrate an improving ability to make monthly payments deserve more competitive terms. |
Step 3: Loan or Lease Acceptance
The efficiency of the digital lending customer journey shouldn’t be interrupted by paper processes that delay decisions and add to the lending process’ expenses.
| Capabilities | Bank Benefits | Customer Benefits |
| E-contracts and E-signatures | Respond to offers without paper or postal delays.Maintain a completely digital record of the agreement. | Accelerates the lending process and allows for the convenient review of terms. |
Step 4: Online Servicing
A completely digital loan or lease origination process provides all the information needed to support digital servicing, allowing borrowers to easily access loan or lease information and banks to reduce customer service costs.
| Capabilities | Bank Benefits | Customer Benefits |
| Online self-service | Reduced service center call volume.Lower customer support costs.Servicing agents focus on inquiries that truly require their expertise. | Anytime, anywhere information regarding account status, payment history, and payoff amounts.Set up automatic payments.Make one-time payments. |
Meeting Expectations With a Completely Digital Lending Customer Journey
Today’s consumers have come to expect a digital experience throughout the entire lending journey—from loan or lease submission to final payment. A modern, cloud-based lending platform allows banks to meet these expectations in a way that accelerates loan or lease decisioning, reduces lending risk, and increases lending opportunities.
Getting Started
defi SOLUTIONS offers a cloud-based lending platform that lets banks provide a completely digital lending customer journey, from loan origination to servicing to final payment. Menu-based configuration, extensive automation capabilities, and pre-integration with a wide range of innovative lending information sources allow banks to implement lending solutions that meet their unique requirements. If you’re challenged by poorly-integrated lending software that can’t meet the expectations of today’s consumers, contact our team today or register for a demo.
