Dmitry Dolgorukov is co-founder and CRO of HES Fintech, a leader in offering lending platforms to monetary institutions.
In 2014, investments in monetary generation tripled to a total of more than $12 billion. Today, virtual transformation has infiltrated almost every component of the monetary sector— from visitor integration to internal processes and even lending. It revolves around automation, smarter decisions and more efficiency So what does this mean for lenders, whether classic or alternative?
What virtual transformation looks like for classic and choice lenders
Despite the volatility of 2020, the overall lending landscape may approach the future. A forecast estimates a compound annual expansion rate (CAGR) of 6% with a market price of $7. 93 trillion through 2023, and the virtual loan market is expected to grow at an annual compound rate of 11. 9% from 2020 to 2025. The question, as always, is how does the industry do it?Here are some of the significant maximum trends that will drive this expansion.
More accessible finance
We are used to seeing the bank as a faithful institute, explained through men in a spreadsheet full of numbers, but it is no longer so. Finance is now more available than ever with increased monetary generation through classic suppliers and new financial technology companies.
For classic suppliers: According to EY, 64% of consumers have used a monetary generation solution in their lifetime, the message here is that if you haven’t updated your generation stack, you want to adapt and quickly.
For lenders of choice: generation is on their side, what is not (at least not yet) is general security, scammers creatively adapt to the strategies they use to defraud consumers and businesses, and fintechs can be vulnerable, especially with the expansion of Meet Your Customer (KYC) and Anti-Money Laundering Procedures (AML) due to the Covid-19 pandemic. at a provider.
Self-service is growing
Automation in the banking sector is now moving from automating undeniable processes, such as filling out forms, to more complicated processes such as account opening, visitor integration, and transactions. Customers need managers who are theirs. They need a service here and now. simplicity to open an app, get things done and get on with their lives.
For classic suppliers, this means accepting that the abandonment of brick and cement as the main source of financing is solidifying, banks and lenders will want to diversify and that their products are more suitable for self-service.
For lenders of choice: With 59% of consumers still prefering to apply for a loan in person, it is clear that there is a point of disagreement left as true or virtual. they must provide reliable and safe answers that decorate the visitor experience.
Real-time decision-making
Whether a visitor is a business or an individual, waiting for a loan to be resolved can be distressing and negative for long-term planning. But how can loans be granted more temporarily without incurring greater risks?By adopting Big Data, AI, and ML, resolutions can be knowledgeable but fast.
For classic suppliers: it’s time to consider the next generation of credit customers: Generation Z Today, Generation Y, and Generation Z make up a significant percentage of the loan market, and it’s destined to grow. It is essential to take into account the wishes of this developing market segment and set a certain speed and power as standard.
For lenders of choice: Adapting the great generation of knowledge allows financial technology lenders to make lending decisions even faster, but it’s important not to compromise security.
Data-driven decisions
Great knowledge may be the secret to making quick lending decisions, but that’s not all. The exploitation of knowledge allows a company to go beyond loans and count almost every domain of activity, from figuring out where to focus next year adapting marketing campaigns to identify where to invest resources.
For classic suppliers: it’s time to see individuals, not groups, in planning. Personalization has long been a trend in other service areas, and now it’s time to expand into the monetary sphere as well, in order to save cash inefficient and marketing.
For lenders of choice: It may be time to dig deeper and read about how knowledge and artificial intelligence generation can also be used to optimize lending services, such as credit rating, repayment schedules, or even make the integration procedure more efficient.
Financial education
The days of incomprehensible finance are over. The market demands a replacement in the economy that is understandable to almost everyone. This trend has gone from governing the length of the “small print” to comprehensive financial technology responses designed for the sole purpose of monetary education and is expected to continue.
For classic suppliers: Greater transparency of repayment and repayment structures is required for Americans, it is imperative to ensure that the service is as undeniable as you can imagine for your customers, which not only increases satisfaction, but also increases the likelihood that they will pay off their loans.
For lenders of choice: Customization is at the heart of long-term technology solutions. The combination of artificial intelligence generation and monetary literacy can enable companies to provide their consumers with the data they want to make the right monetary decisions. This reduces the threat of credit default, and increases the company’s reputation as a trusted provider.
Transformation for the better
Last year has been difficult, not only for us as human beings, but also for businesses, unforeseen occasions can create unforeseen dangers for businesses and the financial world is no exception, however, as in all situations, there is a ray of hope, and it is the preference to expand more human-friendly responses that we are offering regardless of whether we are at a social distance or in a brick-and-mortar branch.
Forbes Finance Council is an invitation-only organization for executives of successful accounting, monetary planning and wealth control companies.
Dmitry Dolgorukov is co-founder and CRO of HES Fintech, a leader in offering lending platforms to monetary institutions. Read Dmitry Dolgorukov’s full report
Dmitry Dolgorukov is co-founder and CRO of HES Fintech, a leader in offering lending platforms to monetary institutions. Read Dmitry Dolgorukov’s full profile here.