Doing more with less continues to be a mantra for businesses in the digital age where physical location is almost an afterthought. Over the past several years, new technology, in particular financial technology (fintech), has drastically changed how the lending industry operates, both in the traditional and within the alternative lending space. From automation of time-consuming tasks to advancements in artificial intelligence (AI), mobile communication platforms, machine learning and digital lending platforms, new fintech is improving productivity in the lending industry.
New technology automates repetitive tasks, saving you time and money
Twenty-some years ago, lending involved lengthy, one-on-one meetings with loan officers who transmitted information via fax machines and processed information using spreadsheets.
Today, fintech and AI have disrupted the lending industry, making it possible to receive a loan and make payments without hassle. New technology allows lenders to re-allocate resources to more profitable tasks and away from manual information gathering, data entry, credit analysis, risk management and customer communications.
While use cases vary, a recent report by the FDIC Consumer Research Symposium indicated that new technology adoption reduces process bottlenecks, increases mortgage processing timelines by 20%, and enables faster refinancing (with fewer errors). According to a report by McKinsey Insights, nearly 45% of typical work activities performed by lending staff could be automated with existing new technology. This workforce automation would lift productivity and save U.S. lenders $2 trillion annually.
Data is easier to analyse using AI
Having data allows you to make better business decisions in all aspects of lending, from knowing your customer to increasing productivity. However, as important as data is, it is equally if not more important for you to be able to unlock that data’s value for meaningful analysis and insight. Technology such as AI makes it easier to turn data into meaningful predicative analytics.
The automation of labor-intensive tasks, such as cleaning up and presenting data or removing duplicate entries and other human errors, can be eliminated with AI, making the data easier to understand and more efficient to use. Without AI and automation, these minimal-skill tasks account for as much as 80% of the time staff spends on readying data – time that could be productively spent elsewhere.
You can reach customers anywhere they are with mobile technology
What’s the first thing you do when you want to look something up or make a purchase? If you’re like most people, you pick up your mobile device. The modern technology of smartphones has made sending and receiving payments as easy as pressing a few buttons.
Additionally, advancements in mobile communication have also improved companies’ relationships with their customers. When businesses use their customers’ preferred channels of communication – such as email or text – reminders, messages and payment information is more easily conveyed and understood. For both parties, the process is quicker and more efficient than outdated forms of communication, such as direct mail or telephone calls.
AI makes for productive, cost-effective and personal customer service
Effective and efficient customer service is a tenant to any successful lending business in the digital age of new technology. However, many lending customers, particularly younger ones, want customer support on their mobile devices. Though it may sound counterintuitive, AI capabilities can allow a more personalized customer service experience.
AI allows customers to communicate common questions and get a quick response that aligns with personal profile preferences.
In fact, a recent study shows that 80% of customer inquires can be satisfactorily answered by new technology.
Streamlined and easy-to-use technology gives way to alternative lending
Easy-to-use technology has enabled the development of alternative lending options such as online lending. The whole lending process occurs exclusively online using platforms. In this way, the platform merely facilitates rather than “authorizes” the lending process, so it takes place in a quick productive manner.
At Remitter, we use AI to help streamline the accounts receivables recovery process. Our mobile-first solution allows businesses to efficiently convey personalized payment messages to their customers in order to improve their recoveries. If you’d like to learn more about how fintech and AI can help the productivity of your business, contact us today.