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You wouldn’t buy a car without an engine. While its other features are certainly helpful—brake sensors, Bluetooth compatibility, four-wheel drive—they’re all rendered essentially useless without the item that powers the whole machine. You need the features and the engine for the machine to function properly.
You can think of a financial institution’s (FI) operations similarly. Advanced technology is certainly necessary for FIs to flourish, but that technology only goes so far without current data points and in-depth analytics to optimize results. Your FI requires both the right technology and readily available data to create the seamless, personalized experiences consumers seek.
In short, data delivers. And using it to create more timely, tailored communications can not only foster stronger, long-term consumer relationships, but it can also help FIs boost revenue from primary accountholders by up to 20%.
Key Metrics Driving Financial Excellence
A digital lending solution that can comprehensively access and analyze data helps your FI oversee the flow of information and use it to uncover additional origination opportunities quickly and with lower risk—sharpening your competitive edge.
Beyond that, solutions that are intentionally designed around data-driven workflows—such as those offered by MeridianLink®—further improve your efforts by not only delivering a superior consumer experience but also measuring your FI’s performance and proactively making adjustments based on key performance indicators (KPIs).
KPIs are essential data points for measuring, improving, and optimizing performance across your FI, and they provide a clear and objective way to gauge progress and how effectively you’re achieving your desired goals. Let’s take a look at three KPIs crucial to your lending operation’s success:
- Approve-To-Fund Ratio
Approve-to-fund ratios measure your FI’s efficiency in converting approved loans into funded loans. A high ratio of unconverted approved loans may indicate bottlenecks in your lending process, which in turn can delay consumer satisfaction and pose financial risks. Tracking this ratio can help you identify and alleviate inefficiencies while accelerating loan funding.
- Processing Times
Diving into dynamic trends and performance indicators hidden within your data can help you understand why certain results and anomalies keep appearing in your lending processes. Once you’ve identified these issues, you can swiftly adjust them with substantial impacts.
- Instant Decision, Approval, & Decline Rates
Understanding these metrics helps you make informed decisions and fine-tuned risk assessments to better protect your FI while fostering a consumer experience aligned to the modern consumer’s fast-paced, on-demand expectations.
A Partner on Your Path to Excellence
Using MeridianLink’s data-driven digital solutions, our customers have been able to achieve remarkable results and quantifiably report on those successes including:
- Increased Instant Approvals
- Accelerated Growth
- Efficient Account Opening
- Higher Approve-To-Fund Ratios
The road to digital lending excellence is yours to navigate, but you’re far from alone in this journey. With data as your guiding light and our team of dedicated experts at your side, MeridianLink is here to help you every step of the way.
Download the full brochure below to learn more about data’s role in lending processes and discover how MeridianLink solutions can help your FI improve operations, reduce risk, and continue to delight consumers.