How to Evaluate Digital Lending Providers

A plethora of new and existing providers are offering “digital lending” services.  In some cases, digital provides greatly enhanced larger C&I loan processes, where digital can include sophisticated financial analysis tools, file sharing and document collection and management through a complex loan process.  In other cases, SBA lending has specialized processes and documentation that a digital strategy can highly automate.  Further, for a $50k unsecured small business loan guaranteed by the owner, digital processes can be all self-service and automated in minutes on a smart phone.  No one firm or technology provides all these functionalities, and one size does not fit all.  FIs adopting digital lending strategies and technology need to match their technology review to the target markets they want to serve.

Strategy Drives Segmented Digital Lending Strategies

Historically, FIs adopted a LOS that primarily served as document preparation and was used for all types of loans.  As digital technologies have developed, their efficiencies and focus allow tailoring a digital strategy by segment.  Where as in the past concerns for training, server installation and data capture would focus choices on a single system, some digital strategies provide self-service requiring no training, nothing installed on your servers, and full integration of data on your core. 

To evaluate and review digital lending providers, first define the market segments you want to serve and strategies you want to implement, and then match providers to those segments and strategies.  

MinuteLender® is the only digital lending platform that delivers self-service loans on demand, in branch out, to consumers and small businesses, with completed loans and funding options in minutes.