Lending is always the cornerstone of banking and moreover lending products offer a significant and differentiating feature of relationship that lasts for years.
In the current era of retaining customers increasingly becoming challenging. Banks need to focus on developing lending system not only to improve bottom line but also to connect and build longstanding relationship with customers. Banks need to match up to customer needs in the product differentiation as well as in processing timelines and flexible servicing capability. To this end, banks need to leverage the leading-edge lending systems that are capable in delivering superior customer experience so as to capture growing share of retail market.
Proliferation of technological advancements offering the customers wider reach and the ability to choose from multiple channels with a simple touch. The increasingly connected customers are expecting personalized and tailored products with added comfort and convenience that too in real time. In addition, the entry of non-banking entities adopting the technology advancements with light operating model and minimal regulatory burden are rewriting the traditional business models. In light of these developments, banks still hold edge as banking is all about trust and banks have superior advantage in winning customer trust than non finance companies.
Lending System With Agile Operating model and Responsive Technology Solutions Play Major Role
Banks need to revisit their operational model. Especially the traditional loan origination experience built on outdated technologies, cumbersome policies and processing the information from disparate systems that is typical of any banking application.
It is a known fact that the typical application portfolio of a bank comprises the disparate systems for various business processes that evolved over the years as silos with little or minimal integration. Non-banking entities on the other hand are fully leveraging the FinTech advancements and are focusing only one such activity that offers them the required level of flexibility and configuration. This will help them achieve the product innovation with reduced time to market, improved operational efficiency and better customer experience. In addition, tightly coupled systems with rigid processes and products offering minimal scope for configurability posing operational challenges to the banks in integrating with other systems and also in extending lending to all service delivery channels.
Self Service Channels with Anytime and Anywhere capabilities hold key
Given the evolution of the lending industry and changing market dynamics, enterprising banks have started adopting more sophisticated platform based solutions that are built only for lending. Though it is a good start, banks need to ensure specialised solutions leveraging technology advancements that offer the complete suite withing a lending systems and compete with non-banking FinTech entities.
Lending system that is compatible in various channels be it a web application or a mobile application is not just a business imperative but it is the need of the hour considering the dynamism of today’s consumers. Also in order to keep up the longstanding relationship with customer, digital capabilities are expected to do more than just providing information and offer better insights and control over the loan proceedings- all at their convenience.