As countries go into lockdown due to COVID-19, people are forced to keep social distance and work from home. This crisis highlights how important digital capabilities are and products are, and how important speed and seamless integration are.
While it is not possible to completely digitize all business sectors, however, complete digitization of certain financial services are well achievable.
With continuous innovations being brought up, Lending firms, credit bureaus, etc. have already witnessed a shift from transactions involving huge amount of paperwork to paperless transactions. The next steps are headed towards contactless transactions. Amidst this bleak scenario, ‘Contactless Lending’, greater adoption of digital channels, enables firms to cater to the needs of clients globally. For Lending Firms, the future is Contactless payments and branchless lending.
Move towards contactless transactions
Digitization is preparing Lending firms for the future, where every transaction will be contactless. Modern lending systems are all about providing access to funds anytime, anywhere, for customers who are increasingly tech savvy. These empowered customers have no patience for the mounds of paperwork and lengthy processes that was the hallmark of traditional lending. Digital channels fulfil the customers need for convenience and continuous availability, while at the same time offering lending firms’ new opportunities for growth.
With continuous innovations being brought up, the financial market has already witnessed a shift from transactions involving huge amount of paperwork to paperless transactions. The next steps are headed towards contactless transactions. Contactless lending is pretty much what it says it is: there is no contact between the borrower and the lender. All verification and checks are done digitally before the loan is disbursed.
Financial entities and service providers have already taken steps to facilitate the entire transaction without any physical intervention.
Key drivers towards digitization
The key drivers for the adoption of digital lending practices is the change in behavior of customers that is shaped by the experience offered by technology. The proliferation of data and the use of big data analytics to understand consumer behavior and creating algorithms has resulted in a digital wave. Innovative operating models such as independent platforms or collaborations are being largely adopted. There are constant changes in the regulatory environment which are also providing an impetus to the digital lending market.
Shift of operations from physical to contactless
A few innovations that may bring a roundabout change are:
- Automated follow-up solutions
- Digitized collection strategy
- Enabling voice recognition feature of verification
- e-signature workflow solution
- Predictive Analytics to get a 360 degree of customer profile for a better future planning
- More secure version of data repository with end-to-end encryption of KYC information.
- Chatbots, AI-based virtual assistant for an efficient customer service
When you transform your organization into a completely connected enterprise that bridges the gaps between systems, silos, processes, and people, you create a holistic, intuitive customer experience, enduring loyalty and a competitive edge—all while delivering excellence in operational efficiency and ensuring compliance.
So, how far is your firm in its digital journey?
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