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HOW BANKING FINTECH CAPABILITIES ENHANCE THE LENDING LIFECYCLE

The defi Team auto loan origination software, Automation, Community Banking, defi CONNECT, defi INSIGHT, defi LOS, Digital Loan Documents, Digitalization, Instant Integrations, Loan Management, Simplifying Processes, Technology

auto loan online application

We believe that great customer service begins with the first transaction a customer has with your bank and extends throughout the life of the customer relationship. Employees with superb customer service skills are essential, but technology and market trends are redefining how great customer service is provided. Consumers today expect more control over their transactions. Anytime, anywhere interactions via desktop or mobile device have become the expectation. 

Banking fintech capabilities are enhancing customer service by providing a completely digital experience that benefits both consumers and banks. Let’s take a closer look at the lending process to show how banking fintech capabilities deliver a better level of customer service throughout the life of a lease or loan.

The Benefits of a Paperless Lease or Loan Application Process

What’s one of the most effective ways to increase the efficiency of any transaction? Eliminate the paper. For decades, paper has been the bane of most banking processes, but the adoption of imaging and workflow technologies has transformed many back-office banking processes. 

Technologies that eliminate paper are bringing that same level of efficiency to consumer desktops and mobile devices. Whether originating a lease or loan by mobile device or desktop, the ability to capture any required documents via a mobile device—such as a driver’s license, pay stub, or proof of residence—and easily include digital images in the loan or lease application fosters a streamlined process that can be completed, sent, and reviewed in just a few minutes. 

Borrower’s benefits: Supports an “all-at-once” lease or loan application. No delays involving copying and mailing documents. In the best cases, an application is completed in minutes. 

Bank’s benefits: A completely digital lease or loan application can immediately be reviewed and processed using automation. It also eliminates back-office mail processing costs.

Automation Accelerates Lending Decisions and Boosts Confidence

A completely digital loan or lease application process allows banks to take advantage of some of the latest bank fintech capabilities. Data-driven workflows that are guided by decision rules let banks review and approve many lease or loan applications without any intervention by a loan officer or underwriter. A prompt response to a loan or lease application supports a strong customer service ethic.

An increasing number of innovative, cloud-based information services let banks verify applicant information in seconds, obtain a more accurate estimate of an applicant’s financial standing based on alternative credit data and/or credit payment trends, and use machine learning algorithms to more accurately calculate risk-based lease or loan terms. Even applicants that initially fail to match credit policies can benefit from capabilities such as auto-structuring which iteratively modifies credit terms until a match can be made. 

Borrower’s benefit: Fast loan or lease decisions; can be within seconds for well-qualified applicants.

Bank’s benefits: Rapid decisions boost the chances of capturing loans or leases. Position a lender as a leader in the use of banking fintech to deliver a superior customer service experience.

Paperless Acceptance Process

Accepting a lease or loan offer should be just as easy as submitting an application. Borrowers shouldn’t be delayed in accepting an offer because of the time it takes to arrive and return by mail. Instead, e-contracts and e-signatures allow lease and loan offers to be delivered via email, quickly reviewed, and signed electronically. Behind the scenes, all of the documentation is captured and retained per regulations and can be easily yet securely referenced by servicing agents or the borrower. 

Borrower’s benefit: Quickly and easily review lease or loan terms and accept the offer.

Bank’s benefits: Bypassing paper processing boosts the chances of capturing the lending opportunity. It also reinforces the bank’s focus on providing exceptional customer service. 

Borrowers Receive Greater Control Over Loan Servicing

A lending experience that begins digitally should continue throughout the life of the lease or loan. A fully integrated lending platform allows all relevant borrower data to flow seamlessly from application to approval to servicing. Although the lease or loan application, review, and approval process is the gateway, it’s only a fraction of the entire lending cycle. And if their lending experience began digitally, it should continue digitally throughout the life of the lease or loan. Borrowers have numerous reasons to inquire about their lease or loan during its lifespan. Secure, online access to loan information gives borrowers access to real-time account information, allowing them to:

  • Establish automatic payments. 
  • Confirm that automatic payments have been made. 
  • Make one-time payments. 
  • Access payment history. 
  • Determine current lease or loan pay-off amount. 
Borrower’s benefit: Immediate, accurate account information and ability to manage payments.

 Bank’s benefits: Lower customer service call volumes and reduced statement printing and mailing costs.

Banking Fintech Is Critical In Meeting Today’s Customer Service Expectations

Today’s consumers expect a more digital experience, which can be attributed to the prominence of mobile capabilities and changes in buying behaviors. Banking fintech capabilities are enabling banks to meet those expectations by eliminating inefficient processes, providing access to information services that boost lending confidence, and giving borrowers a greater sense of account control. In short, banking fintech capabilities are critical in meeting today’s customer service expectations and remaining competitive. 

Getting Started

defi SOLUTIONS’ online defi CONNECT product benefits both banks and borrowers. defi CONNECT integrates with defi’s configurable, cloud-based end-to-end platform that includes loan and lease originations and servicing. If you’re struggling with current lease and lending software limitations, take the first step toward delivering a superior level of customer service with banking fintech capabilities. Contact our team today or register for a demo.

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