Digitalisation and technology are reshaping how businesses operate in every sector – and financial services are at the forefront of this change. Banks and other financial institutions worldwide are adopting a technology-first approach to keep up with cutting-edge fintech firms that offer speed, convenience, and personalised financial products.
Credit is at the heart of financial services. Traditional banking systems follow lending processes that involve tedious forms, approval timelines stretching into weeks and limited access to financial solutions. Therefore, the digital transformation of end-to-end credit journeys offers significant advantages to the entire industry.
A technology-first approach to financial services is not just changing the competitive landscape of the lending market; it is making financial solutions more diverse, efficient and inclusive. Here’s a look at six ways in which fintech is transforming the lending market –
1. Enhanced Customer Experience
The digitalisation of lending processes enables customers to apply for loans online with user registration, online document submission, customer authentication and verification, loan approval and loan disbursement. It offers ease of application, transparency, and a hassle-free customer experience for borrowers.
2. Upgrading Cybersecurity in Financial Services
Implementing cloud-based solutions in financial services has helped solve one of the most pressing issues in the digital transformation of the lending market – cybersecurity. Smart technologies are helping detect suspicious activities and prevent fraudulent transactions in financial services.
3. Better Access & Affordability of Financial Services
Leveraging technology for financial services has enabled lenders to reach out to millions of people – by offering timely and affordable financial solutions. Today Fintech companies provide customised financial services to small and micro enterprises enabling them to thrive.
4. Large Scale Customer Acquisition
The financial services industry has access to new-age technologies such as artificial intelligence and big data. It enables them to reach a more extensive customer base and offer innovative products to people who never had access to financial services before today.
5. Automation of claims and customer services
Paperless processes and automated solutions have helped the financial services industry reduce its carbon footprint. It helps cut down on countless person-hours, optimise costs, and reduce errors. Using technology to enhance employee communication and collaboration frees up bandwidth for mission-critical jobs.
6. Better Business Agility
In financial services, just as in any other industry – it is imperative to stay prepared for disruptive change. Moving business processes to the cloud and leveraging emerging technologies like artificial intelligence, machine learning, and data sciences can help banks, NBFCs, and Fintech companies stay prepared for change.
In light of the technology-first approach, it is safe to say that fintech is quickly eroding the market share and relevance that banks and NBFCs once took for granted. But instead of scrambling to automate processes and keeping up with change, digital transformation in the lending businesses should remain focused on strategic principles, service innovation, and operational efficiency.
At 1silverbullet, we empower businesses with a technology-first approach to financial services. Focused on digital imperatives that enable your business to create new operating models, products, and services for the new-age lending market. If you are a financial services company looking to leverage technology and build better digital lending solutions – talk to us today!