Empower Digital Transformation of your lending portfolio with Mobility

Date published: 22 Jan 2018

It's been more than a decade since mobile phones came to be regarded as an alternate mean of financial transactions, but the focus was more on banks. Non-banking Lending is an area that continued to remain serviced by traditional channels like store fronts and legacy web platforms. Only in recent years are mobile devices being increasingly leveraged by lenders, partly due to the ubiquity and astounding capabilities of smart phones and next-generation networks.

According to the PwC report, Consumer Lending: Understanding Today’s Empowered Borrower, three out of four demographic segments prefer to be online for each phase of the lending process as opposed to traditional methods, such as in person or on the phone. This is far different from the expectations only a few years ago.

This is obvious from the fact that, Store front traffic has decreased, and digital channels are now the main route most customers interact with their lenders. Lending has also become very commoditized, with rates and terms taking priority over any pre-existing relationship(s).

Another strong reason why Lenders should embrace mobility is because Millennials (those born between 1980 and 2000) are entering their prime spending years and are the next big opportunity for the lenders. When engaging with Millennials, businesses need to adopt a mobile-first approach to reach them. This isn’t limited to onboarding or marketing, but spans the entire life cycle through to collections and retention strategies. Millennials expect straightforward, user-friendly platforms, and prefer mobile rather than online services.

More importantly, customers constantly demand more sophisticated and easier means of doing business with lenders. Mobility can help lenders achieve that end.

In simple terms, mobility in lending is the ability for the customers to use their smartphones to apply for, gain approval on, check the status of a loan and manage their loan accounts is the prime. It is yet another way that mobile phones have revolutionized the age-old practice of lending.

Here are some key features the Lenders should explore as part of their strategy towards mobile enablement of their portfolio.

  • Loan Calculator
  • Compare Loan products & rates
  • Apply for loan
  • Check Application Status
  • Submit pictures and loan documents
  • Identity Verification
  • ESign from mobile
  • Account Management
  • Reloan
  • Chat and Video Calls with customer support
  • Get InApp updates and Reminders
  • Personalized Offers and promotions
  • Refer a friend, And more..

Advantages of adopting mobility in lending

Mobile enablement of Lending portfolios will significantly reduce inefficiencies that are inherent in a traditional loan application process. The traditional loan process is latent and there are often delays associated with the lender and customers in exchanging information required. Often, customers switching lenders when there is a delay in loan decisioning or if the user experience is not satisfactory. Mobility can transform such user experiences and bring customers closer to the lenders with just a touch of a screen.

Mobility bring in transparency, with apps enabling customers to keep a close tab on what is happening in the loan process. In addition to the conventional email notifications, incorporating in-app messaging or SMS capabilities would ensure that customers are informed in real-time about the loan process, an approach that will add to the lender's credibility.

Ubiquity is one significant characteristic of mobile phones, and a strong enough reason for lenders to move towards mobility. Unlike the traditional mode of visiting a store to apply for a loan or applying through the computer, mobile phones offer an on-the-go experience and enable customers to perform all operations from anywhere at all times.

Mobility not just enables the loan applications, identity verification, document submission and payment process, but also allows younger loan applicants to use their much-loved smartphone to get a loan on the go and keep track of it at all times. Deploying mobility in lending is no longer an advantage for early movers but is quickly turning out to be a "must-have" capability for all the lenders.

In this article, we have discussed the need for lenders to embrace mobility and some of the key features and advantages that mobility can offer. In the coming articles, we will focus on the unique features of SparkLMS

Thanks much for taking time to read through this article. If you are interested in a demo of SparkLMS, write to us at [email protected]