Despite popular belief, digital lending has actually been around for quite some time. It began in the 1990s around the dot-com era with digital mortgage and consumer lending. While it wasn’t a popular solution back then, digital lending today has come full circle. Many financial institutions offer digital lending in some capacity. A recent survey by the ABA shows that digital lending could for 10% of all consumer and small business lending market by 2020. Despite this, there are many FIs that do not offer it, or they only offer digital options for part of the lending process. While those banks and credit unions have certainly gotten by without full digital lending, they are missing out on features and opportunities that it can provide. Here are 5 ways that digital lending can improve your credit unions lending process.
In any industry, executives and CEOs look for consistency. Process consistency leads to fewer mistakes and higher levels of efficiency. The financial industry is no different, and credit union CEOs are looking to make lending approval processes more consistent. Fully integrated digital solutions for loan originations create consistency, as well as provide access to data metrics and trends to help review and refine the process.
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