Digital banking trends are continuing to gain momentum as pandemic measures remain and customer preferences shift. And as these trends grow, they also expand to include more products and services. Enter digital lending.
Digital lending is the migration of most or all of the lending and loan origination process to online and mobile platforms. Gone are the days when customers went from bank to bank, trying to convince one to give them a loan. Customers are savvier – they want to compare financial institutions’ rates and policies online to find what they believe is the best deal. And right now, auto loans are seeing a big increase – mostly due to online loan process availability.
Digitizing the loan process allows your credit union to offer a straightforward, user-friendly process for applying for and receiving loans. Here are some of the benefits of embracing digital lending.
Enhanced Member Experience
When it comes to big decisions, consumers take their search to Google first. They want to see if your credit union has what they need before they ever call or step foot in one of your branch offices.
Often, when a potential customer can’t find what they need on your website, they move on to the next business in their search results, and you’ve lost that customer before you even knew they were there. Creating and integrating digital lending into your credit union’s repertoire allows you to meet customers where they are and give them a valuable online resource.
Many banking customers want to keep their business local to the community. While big banks have always had the advantage when it comes to implementing new technology, credit unions offer a more personalized, local service that people are craving. And opening new digital avenues for business can also improve your credit union’s positioning in your local and regional markets.
By embracing digital lending, you can also improve the efficiency of your process, which in turn creates quicker turnaround times and more business for your credit union.
Allowing your customers to serve themselves relieves some of the burden from your employees and creates more time and availability for them to perform other duties.
Digital lending also improves many back-end experiences. The software used to create these online loan opportunities can also often create insightful reports and offer helpful analytics.
These resources can assist in your strategic and marketing efforts as well. You will have the ability to tailor your efforts to make a bigger impact on your members and your community.
Digital Lending Is a Staple of the Future of Banking
Self-service and online banking came to the forefront of customer service in 2020. What began as a necessary shift to accommodate social distancing and mitigate the spread of germs only accelerated the timeline for banks and especially credit unions to catapult their offerings into the digital realm.
To stay relevant and competitive, it’s important for your credit union to continue to focus on forward-thinking, online and mobile-based solutions so you can continue to grow your business and better serve your members. The transformation of banking was kick-started by a pandemic, but the momentum won’t be wasted by any enterprising business that wants to be a part of that future.
Digital Solutions for the Future of Banking
We know how important it is to safeguard your member data, especially as you continue to offer more online products and services. Having cloud-based backups housed offsite is a great way to ensure the integrity of your files and give you and your staff peace of mind.