Whether you are a small lender or you are running a Fintech company, you have experienced the effects of covid-19 on your business. While digitization has saved many businesses from getting derailed during lockdowns, there are still some challenges that require your attention.
To address these challenges, you need to learn how some lending businesses are still growing well. You can attend a virtual private lending lender event like Evolve State of the Market to get connected with successful lenders.
You can learn about the tools, techniques and technologies they use. If they are getting more deals, they must have some special skills.
The following are the top four digital lending challenges you may face:
Managing business rules
Even a small lender uses cloud-based solutions. In this software, business rules are coded into business logic to automate processes. However, a cloud-based solution uses a subscription-based business model. Many businesses use the same solution.
However, not all businesses have the same business rules. Moreover, it is a regulated industry. As some regulations change, these coded business rules also require changes. A cloud-based solution is a third-party tool.
Whether you will be able to follow the changed regulations or not, this depends on the vendor. While attending the Evolve State of the Market event, you may find someone talking about the most reliable cloud-based solution.
Banks and other lenders have sales personnel and loan officers who engage with leads. They help potential borrowers with loan eligibility and qualification. They use prequalification systems and other tools to automate this process. This helps them in processing more loan applications and closing more deals.
However, small lenders are not aware of or comfortable with such systems. If you are one of those, you need to ditch outdated methods and automate lead generation.
Lenders using traditional methods may not be aware of the lead funnel and other terms used in modern methods. This lack of education makes it difficult for lenders who have been using the traditional approach before COVID-19.
Dealing With Other Stakeholders
Networking is very important in this business. A lender works with third-party sales agents, and other professionals. They may or may not come under the same business rules. When you use a cloud-based solution, you, and your employees get dedicated dashboards to communicate and manage tasks.
Some solutions come with dashboards for customers as well. However, your cloud-based solution may not have a dashboard for third-party sales agents. Tracking and managing tasks that involve third-party agents may be a little difficult. It requires more manual intervention.
Before approving a loan application, the lender needs to determine the loan risk. This requires third-party underwriting systems and credit reports for risk evaluation. However, you may not get a complete solution for this. You may need to integrate a document management system, loan origination system or other systems with your cloud-based solution.
There are many cloud-based solutions you can use to digitize your lending business. However, you need to interact with professionals who know more than you. Events like Evolve State of the Market give you opportunities to interact with these professionals.