Financing is the backbone of any business, but this is an area which is extremely difficult for most SMEs, small businesses and start-ups to navigate through. One of the main hurdles was the lack of ease in transactions faced by SMEs. But with digital lending, SMEs were able to solve many of the financing problems they were facing.
Digital lending, which does not require paperwork and is done through electronic means, is changing the industry with SMEs focusing on its benefits and power to build their businesses and take it to the next level. 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. The advent of digitization has brought in great scope for optimizing payments, increasing revenue and cross selling. It also reduces the need for human resources and strength in the documentation and follow-up processes. Moreover, SME users being equipped with mobility can connect from anywhere, anytime. Also, thanks to the costs they have been saving by using fintech to conduct their loan origination processes, these digital lenders have been able to provide loans to SMEs at competitive rates, thereby giving SMEs today multiple options to choose from. Single dashboard technology for tracking the loan application enables transparency in whole process both to lenders and borrowers.
Digitization can offer immense benefit to lenders in multiple areas:
- Reduce lead to disbursement lag
- Better utilization of loan officer’s time
- Fraud reduction
- Relevant, simple and easily bought offers
- Better decision-making, utilizing customer risk and marketing data
- Consistent cross-channel execution
- Better understanding of the customer and his behaviour
- Paperless processes
- Zero compliance slip-ups
- Any-time, anywhere service
