The materials available in this article are for informational purposes only and not for the purpose of providing legal advice. You should contact your own advisors with questions regarding the State of Digital Lending. Opinions expressed in this article are of the individual authors and may not reflect the opinions of MeridianLink, Inc.
As digital-first lending experiences become the standard, personalized, convenient service is the key to differentiating your institution from competitors.
The Digital Banking Report’s 2024 State of Digital Lending reveals a crucial development: digital lending has become the standard, and institutions need to start prioritizing an optimized digital experience if they expect to grow their business and maintain consumer satisfaction.
This report surveyed financial institutions worldwide, with North America representing a substantial majority of the respondents. Here is what these respondents’ answers revealed:
Digitalization Has Been Embraced — But Not Yet Optimized
According to the report, web-based loan applications are now available at 90% of financial institutions, compared to 75% in 2019. But while this jump is significant, it doesn’t account for the fact that many of these applications (and lending processes in general) have only been partially digitalized.
The report also found that less than 50% of respondent banks’ products could be handled digitally from end-to-end, and that while just over 50% of organizations had a digital lending process, that process was relatively slow, disjointed, and impersonal.
These numbers showcase digital lending’s nascence and areas where legacy organizations can make inroads in digitalization and consumer satisfaction with the right strategy, technology, and support.
How to Optimize Digital Lending Experiences
Financial institutions need to focus on going beyond simply digitalizing processes and using data-driven insights to create convenient, tailored experiences.
Some ways to achieve this include prioritizing:
Personalization & Consumer Centricity
Keeping an eye on market trends is important, but alongside these efforts, targeting consumer segments with personalized offers based on their needs and circumstances goes a long way in growing loyal relationships and revenue potential.
Seamless flows, reward programs and incentives, and humanized high-value experiences — such as accounts to which parents can add their children to encourage financial education — can also foster greater engagement and combat silent attrition.
Revised Business Models & Roles
Alongside diversifying revenue streams through targeted consumer outreach, institutions may explore adjacent products or non-financial offerings like advisory services to provide further value and deepen relationships.
Roles focused on proactively planning and executing these revised strategies are also essential. Learn how MeridianLink® partners with institutions to develop a personalized blueprint for digital progress.
Advanced Technology
Modern technology that offers robust automations, data-driven analytics, and a smooth, convenient consumer experience — such as the MeridianLink® One product suite — can help institutions serve more individuals with speed, ease, and relevance, creating greater satisfaction and portfolio growth.
Get more insights in the full report — access it today!
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