According to the ABA Digital Banking Report published this week, “digital lending (excluding mortgages) is a total addressable market of $1 trillion in the U.S., and loan origination volumes could reach $90 billion by 2020 from about $25 billion in 2015.” While no one’s disputing where the trend is headed, it’s interesting how various types of financial institutions are responding.
Are you ahead of the curve? Where is the curve, exactly?
Earlier this month, we blogged about a few of the best practices every financial institution should consider when evaluating whether its loan software and deposit account opening technology can support digital growth. Here are three more best practices that all financial institutions should embrace:
- Robust decision engine (especially on the back end): People apply online for both a matter of convenience and speed. If the application process is easy, but followed by a wait for hours or days to get an answer, the value of your digital solution is greatly diminished. So when considering your digital platform and strategy make sure to consider all of the functionality you need in your loan origination system’s decision engine. Automated decisioning that accurately incorporates your policy is critical to improving the application’s turnaround time.
- In-flow eSignatures (total integration): Filling out an application, getting a decision, uploading supporting documents and accepting cross-sell opportunities are all important parts of a digital application process. However, after an approval has been communicated to the applicant, getting signatures for documents essentially closes the process. That’s why having eSignature functionality is such a critical culminating activity that should be supported through your digital solution. Without it, the applicant has to work outside the application to finalize the loan. This is both time consuming and inconvenient.
- Prefill of fields (core system interface): The proof is in the pudding. Consumers are looking for more than slogans, smiles and handshakes to prove that you know them. What they want is to not have to start at square one every time they want to apply for something. That’s why pre-fill functionality is so important when it comes to the application process. No one wants to take the time to manually enter information your institution already has on file. Having the ability to prefill the application for an applicant both saves time and improves the overall user experience. Core system access can retrieve data for this prefill to occur.
Success in the digital era not only depends on these best practices, it also relies on utilizing a number of others – especially when it comes to maximizing ROI for loan origination systems and deposit account opening platforms.
If you’re interested in learning more about best practices to thrive in the digital age, please join us for a complimentary webinar in two weeks at 2 p.m. ET on Wednesday, Feb. 7. Our experts will explain what’s needed to build a winning strategy when it comes to leveraging a loan origination system to compete on the evolving digital landscape.
This webinar will also feature a demo of how our ACTion LOS leverages these best practice and more for financial institutions of any size. To register, please click the button below.
Photo Credit: Chris Dlugosz