Transformation in digital lending technology.
Digital lending technology enabled lenders to provide potential borrowers with faster to deliver accurate decisions. At the same time more personalized customer service can be provided to the end users. From online applications to artificial intelligence (AI)-enabled chat bots, lending technology trends are increasingly changing to improves processes. By pairing automation with data this allows to bring consumers better experiences. When it comes to lending technologies, keeping up with these trends helps lenders pick and choose the best solutions to optimize their business operations.
Artificial intelligence (AI): Used to optimize customer service, it’s helped facilitate 24/7 account access via mobile devices. Many lenders are also using this technology to help with risk management, especially fraud detection and prevention and lending decisions, while it’s becoming an imperative technology for working with big data, robotic processes, and voice interfaces.
Big data: The huge amount of data gathered regarding potential borrowers allows lenders to garner insights easily, enabling the segmentation of customers for cross-selling products and analyzing customer feedback. Analytics paired with big data has become integral to risk assessment, compliance maintenance, and fraud management as well.
Blockchain: This is one of the lending technology trends from a few years back that hasn’t yet been used to its fullest potential, yet blockchain looks to be a viable way in which to track and improve the security of loan transactions.
Cloud computing: Utilizing the cloud allowed many lenders to survive and even thrive during the pandemic by enabling secure online payments, as well as making round-the-clock customer service possible. It further allows lenders to pay only for those services they need, scaling their services quickly and easily.
Robot process automation: Through the use of automation, lenders saved on labor, minimized errors, and lowered operational expenses. The software used to automate a lender’s processes has enabled chatbots to answer frequently asked questions, freeing human customer service agents for higher priority concerns and other labor-intensive tasks.
Voice interfaces: Using AI software, chatbots were seen as a way to lower costs while responding to customer queries and resolving issues. Interactions from more traditional forms of communication like emails, telephone, and texting won’t likely be entirely replaced, though many lenders already use chatbots.
A few of these trends have not yet come fully to fruition within the consumer finance industry. However, AI, big data, and cloud computing will undoubtedly become an increasingly important part of lending technology. Now, let’s look at some lending technology trends that are looking to make waves midway through 2023.