Risk Analytics Puts Customers First in Online Lending

Consumer Lending Process & Risk Analytics

Digital transformation in financial services has evolved from an industry-bending revolution to a de facto part of operations. Many regional and community banks and credit unions initiated digital transformation programs in response to shifting customer expectations.

However, as digital capabilities have evolved in other sectors, customer expectations have continued to change, creating added pressure to innovate and do so quickly.

Banks and credit unions looking to embrace digital lending to meet changing customer requirements increasingly need robust risk analytics solutions to get the job done. With customers demanding more refined, low-touch processes, risk analytics allow for more intelligent, efficient consumer lending practices that drive positive experiences.

The shifting consumer lending world
As digital capabilities pushed consumers to dabble in web and mobile banking in the past few years, more mature digital services are transforming how people look for loans and what they expect from lenders.

A study from PricewaterhouseCoopers found that loan seekers are seeking to pursue most of the lending process across digital channels. That doesn’t mean they don’t want some strategic support and personal interaction along the way. However, they expect to be able to complete many processes digitally and want the option to do so.

“Borrowers are increasingly looking for fast, simple processes.”

PwC also found that borrowers are increasingly looking for fast, simple processes. Features like automated updates and financial literary tools are also important, but speed is the primary differentiator borrowers are looking for.

This demand for speed comes at a time when 30 percent of respondents to the PwC survey said they utilize low-touch financial advising services that let them leverage digital tools while still getting some strategic assistance.

Ultimately, PwC’s research boils down to a simple trend in which, across almost all loan types, borrowers are looking for efficiency, mobile accessibility and speed.

Executing on digital strategies to meet borrower demands
Responding to shifting customer demands requires operational and service model changes.

A report from The Financial Brand recommended that lenders focus on creating cohesive omnichannel experiences that blend interactions easily across digital and traditional lending channels. Borrowers interacting with lenders with texts, phone calls, online chats, emails or mobile apps should be able to have the information and transactions to easily transition across those channels.

Omni-channel experiences have long been a challenge for financial services firms as they have long faced operational silos that limit their ability to communicate and collaborate effectively. Firms need to think holistically to eliminate silos and update their internal processes to move with sufficient efficiency to keep pace with the demands of digital borrowers.

Risk analytics software can provide an essential foundation for these capabilities. These systems can gather data from across channels, analyze the information and deliver it to relevant stakeholders. This lets you employ process automation, eliminate operational silos and update credit decisioning to keep pace with digital users.

An online platform may be what your digital lenders see when they interact with you, but a risk analytics platform lets your team handle customer demands. GDS Link can empower your firm to unlock this potential. Contact us today to learn how.