Most lenders know by now that it is vital to offer digital lending solutions to their customers. The modern consumer market, especially after the COVID-19 pandemic and coinciding lockdown, has moved much of their shopping online. In order to capitalize on this behavior, lenders recognize that they need to meet those shoppers where they are and make financing offers accessible on websites and apps.
The tricky part for these lenders is that there are now so many digital lending solutions and partners, each offering something slightly different. While financial institutions know what makes a good financial product, it can be tougher to figure out what makes a quality software platform.
For those looking to make this decision, a quality digital lending solution should:
- Improve the borrower experience.
- Safeguard compliance.
- Automate the lending process to increase efficiency.
- Allow for easy configuration.
- Offer seamless integrations with other tools.
- Provide omnichannel functionality.
To clarify exactly what lenders should be looking for, we will go into a bit more detail for each of these and how a quality software platform would accomplish them.
Improve the Borrower Experience
The base function of digital lending solutions is to give consumers a faster and more convenient lending option. As a result, any software that offers digital lending should make improving the experience for end users its primary goal.
Ways to accomplish this include:
- Offer a clean and consumer-friendly UI.
- Utilize a simultaneous lender matching approach to speed up approvals.
- Provide multiple lending options upon approval.
- Properly inform consumers of the terms of their agreement in a consumable way.
All of these give consumers a better overall experience when accepting online financing and make it more likely that they utilize it frequently.
Banking and lending are some of the most heavily regulated industries in the country, and more regulations seem to be coming down the pipeline. Quality fintech providers are aware of this and have created software solutions that can be easily updated to ensure regulatory compliance as new laws are passed. Additionally, they make it easy for lenders to audit their own systems for compliance.
Automate the Lending Process to Increase Efficiency
The lending process can be time-consuming, and this can slow down approvals, reducing conversion for consumers looking for something quick and convenient. Good digital lending solutions can automate the underwriting process using criteria set by the lender to find profitable offers for as many consumers as possible.
They also can automate processes that aren’t consumer-facing, like:
- Data storage and organization
- KPI tracking
- Document generation
These useful automations can make life easier for both consumers and lenders alike.
Allow for Easy Configuration
While a great software product should operate well out of the box, the best options will allow for configuration by the lender. This enables business leaders to customize their platform to suit their needs.
Offer Seamless Integration With Other Tools
As fintech has evolved to meet the complex needs of modern lenders, a given financial institution will likely be utilizing multiple software tools at once. As a result, it is vital that these softwares offer integration with each other to allow for cross-department workflows, data-sharing, and communication.
Provide Omnichannel Functionality
Consumers are shopping in so many different ways while they are online. There are countless different web hosting services, apps, and billing portals out there that all may offer products or services that could benefit from financing. The best digital lending solutions can be embedded into any of these sales channels so that no matter where a consumer shops, they can access the same convenient, reliable, and efficient lending options.
Adopt Quality Digital Lending Solutions With Skeps
Skeps offers a comprehensive, end-to-end consumer financing platform that helps businesses modernize their entire payment process. Working with an entire network of established lenders, we go above and beyond one-click payment, also offering a one-click application process for several different types of consumer financing, including:
- Installment financing payment plans
- Store credit cards
- Consumer loans, and leases
If you’re looking to partner with a forward-thinking fintech company that will get your financial products in front of as many consumers as possible, Skeps is the perfect fit.
Do you have more questions about digital lending solutions? Request a demo or contact us at firstname.lastname@example.org.