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Friday, February 23, 2018

Digital Lending Drives Segmented Lending Sites - No One Platform Serves All

The American Banker today announces that US Bank is teaming up with AutoGravity to apply and get a decision on an auto loan in minutes.  It is another example of a tailored digital application to a specific loan purpose rather than the historical LOS platform for all loans.  Tailored digital processes allow the customer experience to be very specific for the type of loan desired.  For example, AutoGravity integrates dealers and cars with the digital loan process.
U.S. Bank teams up with fintech on digital auto lending

….users can pick the desired car and select a dealership online, apply for a U.S. Bank loan online and, if approved, close the loan at the dealership and drive off in their new car.

Legacy loan origination systems were a single system for all loan types.  Having a single system leveraged limited systems to install on a FIs servers, training of team members and common data storage.  Digital removes the need for all these.  Cloud-based servers require nothing to be installed at an FI.  Self-service on a smart device turn all FI team members into loan providers as they only need to know that “it looks like you click here next.”  And all data resides on the FI core for analysis and cross selling.


But the huge benefit is tailoring the experience for the customer by integrating all the components for the specific loan desired.  Consumers don’t search for “loans” anymore just as they don’t search for “music.”  They search and download a specific song in minutes, and digital lending allows searching and completing a specific loan type in minutes.  As US Bank demonstrates with auto loans and others with examples of personal loans, home improvement loans, small business loans, FIs will provide specific digital loan experiences by loan type.  That is what MinuteLender® provides.






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