Industry Insights: Learning About Lending
Banks and credit unions use technology to wrangle loan portfolios
Lending portfolios are beginning to bulge. Potential new borrowers, especially the coming-of-age millennials, are ripe for all types of loans and are increasingly comfortable using digital and mobile services.
Savvy banks and credit unions are using technology in two exciting ways: first, applying data analytics to target their lending promotions more and more precisely; and second, reaching out to the new borrowers they attract with a full range of digital, mobile, and omni-channel services.
We recently gleaned five articles we think give you the best up-to-date insights into lending opportunities and how technology might help you grow your own loan portfolio.
- A Look At Credit Union Lending In 2016, Creditunions.com. Presents current year NCUA data on the increases in loan volumes—auto, mortgage, credit card and business.
- Bank Think: Time to correct overcorrections on credit availability, American Banker. Reviews the latest data on lags in mortgage lending to minority and lower household income groups—implying an underserved market—despite lower FHA down payments and other shifts.
- Mobile Banking Optimal for Lending Growth, Credit Union Times. Reports on the use of digital channels in lending, especially among millennials, who welcome or even demand 24/7 accessibility, push notifications, text message alerts and companion apps.
- Competing with fintech on business loans isn’t rocket science, American Banker. Examines how the heavy reliance on paper documents hinders business lending. Digitizing paper and ink processes not only allows for faster applications, but ups the likelihood of repeat business and happier customers.
- Leveraging Machine Learning to Create a Powerful Cross-Selling Engine, Financial Brand. Using the example of auto loans, shows how data analytics combines loan data, previous transaction histories, and comparisons with other account holders and credit records, to time and tailor product offerings to specific prospective borrowers.
About the Industry Insights Series
Alogent’s Industry Insights—this blog and the companion bi-monthly newsletter series—track insights into transformative financial technologies as they happen. Our diverse team of experts pulls the threads together and weave in thoughtful—often actionable—analysis to help banks and credit unions keep their competitive edge and meet new generations of consumers where they’re going next.