The coronavirus pandemic has impacted every aspect of financial services, moving transactions to digital platforms, and forcing organizations to rethink back-office processes that have been in place for decades. While disruptive to ‘business as usual,’ this transformation has modernized outdated products, policies, and procedures while improving the customer experience.
Leveraging new forms of data, advanced analytics, and modern technology, financial institutions of all sizes can reduce the cost of delivering products and services and serve a much more comprehensive array of consumers with innovative products and services. In no product area is this more evident than in digital lending.
In a post-COVID world, financial institutions must deliver innovative credit options, on-demand, in an almost instantaneous manner (think POS microcredit offers). To accomplish this feat – which had previously only been offered by fintech firms – traditional financial institutions will need to rethink back-office processes that currently hinder the speed to deliver digital credit.
The most significant opportunity to build a lending portfolio in the near future will be to move beyond the support of consumers buying cars, houses, vacations, and appliances to supporting everyday needs as people just want to make ends meet. This will require the rethinking of everything from an organization’s origination process, to credit checks, to the operation of approvals, focusing on being able to use data to reduce costs, improve speed and expand the potential marketplace.
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