Ask the Experts: Digital Loan Origination & Onboarding
24/7, 365, mobile-first accessibility for borrowers and lenders increases applications and loan approvals, strengthening relationships and loyalty. In today's interview with Cameron Marks, Director of Product Management, we explore best practices and ways banks and credit unions can expand their digital ecosystems through complementary lending capabilities. Cameron leads Alogent's Process Automation product team.
- How can mobile and digital interfaces improve the lending process specifically linked to application volumes and approvals?
Fitting seamlessly into a complete digital banking ecosystem, mobile and digital loan origination solutions (LOS) allow banks and credit unions to expand complementary capabilities to existing account holders and make onboarding new borrowers simple. 24/7, 365, mobile-first accessibility, coupled with easy-to-navigate interfaces and scalable capabilities, make applications more automated and gets loans reviewed and funded quickly. For lenders, transparency into a centralized view of document and version control ensures they meet compliance regulations and facilitates quicker application funding. For all users, borrowers and lenders, digital and automated workflows around applications, underwriting, and approvals speeds decisions and enables faster access to information. Digital lending platforms also allow for auto-decisioning and custom business rules to be integrated into the larger workflow, ensuring applications are reviewed and approved quickly while managing the institution’s risk. Overall, digital LOS’ meet the demands of today’s mobile marketplace, and when combined with a user-first approach, traditional financial institutions sharpen their competitive edge and retain borrowers by warding off the threat of digital-only lenders.
- What kind of digital lending capabilities should banks and credit unions include to differentiate themselves?
In addition to auto-decisioning, institutions that offer digital capabilities, including a compelling and consistent UX throughout the full lending lifecycle, differentiate themselves from competitors and appeal to more potential borrowers through an expanded online and mobile channel. Self-service capabilities that streamline and simplify lending operations reduce abandonment and friction. With a focus on anytime, anywhere access for all borrowers and lenders, a digital LOS expedites the application and approval processes. Combined with cloud-based capabilities that eliminate the need for financial institutions to manage updates or maintenance, document storage, or employ specialized IT teams, lenders reduce their compliance risk and save on overhead costs. Routine audits become streamlined and simpler, demonstrating compliant lending practices and transparent traceability from end-to-end.
- Will digital lending only cater towards certain demographics, i.e., Millennials?
Branch hours, combined with conventional lending programs incapable of onboarding from a device of choice, limit lending opportunities for an FI’s entire user base. It’s critical for banks and credit unions to address these gaps, as well as to understand that consumers of all demographics — not just Millennials — interact via digital channels. While online and mobile channels are often key for younger generations, large numbers of older consumers have been overlooked during digital transformation efforts - many of them long-time customers or members of banks and credit unions. That said, an LOS should prioritize these factors to engage borrowers and lenders who utilize mobile and online channels as their primary ways of accessing their accounts. These flexible capabilities benefit all, from improved convenience, speed, and accessibility.
- What are some best practices that banks and credit unions can employ around lending to boost engagement?
The quality of a borrower’s digital experience largely affects their continued use of a bank or credit union’s online and mobile platforms, products, and services. As such, tailoring consistent, hyper-personalized user experiences is essential for driving engagement with existing account holders, as well as winning new borrowers from alternative lenders and online disruptors. Expanding digital banking with complementary, data-backed capabilities inclusive of loan services and onboarding means finding more ways to connect with users, strengthening their relationships and institutional loyalty. Integrating an LOS with smart tools like real-time credit assessments, loan payment calculators, and other add-ons keeps all lending tasks within a financial institution’s digital ecosystem, further driving engagement and keeping users in-network with more meaningful interactions.
FinanceGenius, a cloud-based, mobile-first loan origination solution (LOS) fits seamlessly within the digital banking channel to automate the lending and onboarding process. With auto-decisioning and streamlined workflows, the platform delivers speed, automation and efficiency for borrowers and lenders alike. Paired with your institution’s customized business rules, FinanceGenius is easily configurable in-house and without additional IT support. Contact us today to learn more about digitizing, simplifying, and streamlining lending with FinanceGenius.