The “Purpose Built” Digital Lending Advantage

Many providers today are offering to enhance the lending process for financial institutions with new digital technologies, from e-sign, online applications, automated underwriting and processing.  The key advantage of some competitors, as documented by research just released on digital lending, is how well the customer experience is “purpose built” to be “fast and frictionless” for specific market segments.  The research shows how the customer experience of non-bank digital lenders like Lending Club and OnDeck is what sets them apart in our hyper-connected world.   Community banks give great personal service, but digital delivery is an entirely different experience.

A comparison of this difference is shown below. Financial institutions offering digital lending will need to do more than just automate their existing loan processes, but must deliver a different “personal” experience that that can be summarized by one click, 24/7 service to “See Your Loan in Seconds, Set Up In Minutes.” This is accomplished by the tailoring of cloud-based digital technology to be purpose built with customization by market segment. 

“Mass Production” Automation vs "Purpose Built"
 Digital Lending by Market Segment 

Digital, mobile lending technologies from non-banks like Lending Club and OnDeck illustrate changes well beyond loan operations.  They are tapping into the way consumers and small business search and are served with immediacy throughout the entire digital delivery chain.  The difference is stark, and FIs that just enhance legacy systems can be compared to music retailers who try to compete today by moving sales of their CD’s online.  The new digital environment instead changes the entire delivery chain by providing immediate download of individual songs.

For more information on how your organization can serve your market with “fast and frictionless” digital lending with purpose-built technology, join us for our complimentary webinar on March 1, 2016.