What You Need to Know About the Future of Digital Lending

Posted by MeridianLink | September 8, 2021

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 content herein. The opinions expressed in this article are the opinions of the individual author and may not reflect the opinions of MeridianLink, Inc.

How to Achieve a Digital Lending Transformation & Upcoming Webinar with Jim Marous

To be successful in today's increasingly competitive lending market, financial institutions need to provide customers with a total digital lending experience. That means digitally transforming the entire customer journey from the inside-out.

However, in an environment composed of alternative lenders, FinTechs and other disruptors, legacy banks and credit unions often struggle to deliver innovative services and establish what their priorities should be.

The Road to a Digital Transformation

Digital transformation can take a financial institution to the next level, providing the tools, processes and resources to streamline operations, cut costs, enhance customer service, and boost profitability.

But to get there, you have to push yourself to do more than just keep up with the competition: you have to stay ahead of them. That means digitizing loan applications with cloud loan origination software (LOS) for mortgages and consumer loans, as well as streamlining the new account opening process, so your customers receive the same ease, speed and quality of personalized engagement they get from Amazon, Uber, Netflix, and other digital platforms.

Planning a digital transformation journey starts with figuring out where your financial institution is today – assessing your digital maturity and detailing the initiatives in place or underway – and setting goals for where you want to be, including your lending goals.

Benchmarking

In addition, benchmarking your bank or credit union against customer commitments and what your peers in the lending industry are doing is a good way to measure your success and set goals.

Benchmarks, also known as key performance indicators (KPIs), are critical for financial institutions in the process of evaluating themselves to identify opportunities to improve their operations. Benchmarks provide a clear picture of how your bank or credit union is performing. And benchmarking sets up a long-term framework that you can use to measure your performance against KPIs over time.

Many banking executives are satisfied with how their financial institutions' current IT infrastructures integrate with advanced technologies as well as how their digital capabilities stack up against the capabilities of industry peers. However, it is critical to measure how your organization is doing in relation to your key competitors.

Here are a few things you should assess in relation to financial institutions of similar asset size:

  • Compare in-branch, online and mobile app
  • Compare the new client onboarding process
  • How are your consumers applying for loans – is there a ratio you’d like to achieve within the next year?
  • Do customers have the ability to save their progress while completing an application or will they be forced to restart the process if they have to log off?
  • Are there any loan types that customers can't fully complete digitally?
  • Do you offer a multichannel process – i.e., do you sell products/services using non-branch channels?

Webinar: Future of Digital Lending

We have some good news for you. We’ve conducted a survey with these and other important industry questions answered by your peers. Join us on Sept. 14, for our webinar with digital banking guru Jim Marous where we will cover them in detail. If you register, you’ll receive the survey results (a $495 value) for free.

Register for our the "Future of Digital Lending" webinar

 

Topics: webinar, digital lending, Jim Marous, digital transformation journey

Written by MeridianLink

Subscribe to Our
Blog & Newsletter

Topics

see all