Driving Digital Transformation: Mobilizing Your Lending Portfolio in lending management software
It's been over a decade since mobile phones came to be regarded as an alternate means of financial transactions, but the focus was more on banks. Non-banking Lending is an area that continues to remain serviced by traditional channels like storefronts and legacy web platforms. Only in recent years are mobile devices in Lending Management Software being increasingly leveraged by lenders, partly due to the ubiquity and astounding capabilities of smartphones and next-generation networks.
Three out of four demographic categories want to be online for each stage of the lending process as opposed to traditional ways, including in person or over the phone, according to the PwC report Consumer Lending: Understanding Today's Empowered Borrower. It is far different from the expectations only a few years ago.
Storefront traffic has decreased, and digital channels are now most customers' main route to interact with their lenders. Lending has also become very commoditized, with rates and terms taking priority over any pre-existing relationship(s).
The fact that Millennials—those born between 1980 and 2000—are starting to enter their prime spending years and represent a significant future possibility for lenders—is yet another compelling argument for lenders to embrace Mobility. When engaging with Millennials, businesses need to adopt a mobile-first approach to reach them. It isn't limited to onboarding or marketing but spans the entire life cycle through collections and retention strategies. Millennials expect straightforward, user-friendly platforms and prefer mobile rather than online services.
Customers constantly demand more sophisticated and accessible means of doing business with lenders. Mobility can help lenders achieve that end.
In simple terms, Mobility in Lending Management Software 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 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.
Mobile enablement of Lending portfolios in Lending Management Software will significantly reduce inefficiencies inherent in a traditional loan application process. The standard loan process is latent, and delays are often associated with the lender and customers in exchanging required information. Often, customers switch lenders when there is a delay in loan decisions or if the user experience could be better. Mobility can transform such user experiences and bring customers closer to the lenders with just a touch of a screen.
Mobility brings transparency, with apps enabling customers to keep a close tab on what is happening in the loan process. In addition to conventional email notifications, incorporating in-app messaging or SMS capabilities would ensure that customers are informed about the loan process in real-time. This approach 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 way of visiting a store to apply for a loan or using the computer, mobile phones offer an on-the-go experience and enable customers to perform all operations anywhere.
Mobility enables loan applications, identity verification, document submission, and payment. It allows younger loan applicants to use their much-loved smartphone to get a loan and keep track of it at all times. Deploying Mobility in lending is no longer an advantage for early movers. Still, it is quickly becoming a "must-have" capability for all lenders.
In this article, we have discussed the need for lenders to embrace Mobility in Lending Management Software 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.
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