June 23, 2016 | Written by: Scott Willis
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Digital Lending is an Urgent Issue
The urgency to move to digital lending has never been greater. Regulatory and compliance requirements have grown dramatically in recent years. There are competitive threats from all sides, both from the non-bank competition and from within the banking industry. These competitors are being more aggressive and more proactive when it comes to digitizing their lending processes. There are new expectations from your customers who have become more technically savvy and have some very well-defined notions about how they want to interact from a technology standpoint with their key service providers. These pressures and more create the urgency to move quickly.
Digital Lending is Easier Than You Think
But the good news is that it has never been easier to move into the world of digital lending. The rate of progress relative to the tools and best practices that are becoming more and more available is something that makes this more accessible to lenders than it has ever been, but you need a solution that leverages the best technologies and can be easily dropped into your current lending environment, regardless of Loan Origination Systems, lending and servicing systems or other systems-of-record.
The Key to Digital Lending is Managing the Content
Lending solutions can be logically divided into data processing and content processing. Content processing is the necessity to manage all the unstructured information surrounding a loan, specifically, all of the massive amounts of documentation. The industry has made great progress on the data side, but not so much on the content side.
The operational processes required to manage all of that content are often disjointed, manual and redundant. As you go through the lending process you find that there are many siloes of information. There is a lot of redundant review, there is a lack of visibility from one function to the next, there is a lot of reorganization of data around the content, there is a lot of incompleteness of data that exists from one function to the next. Often the Loan Origination Systems are handling slices of the content management system. There are often 4 or 5 different content management platforms, workflow engines and BPM engines that are touching various components and the cost of maintaining them across all of the departmental workflows is something that just compounds the pressures around lending operations.
Yet, I would maintain that this content dimension of lending operations is the more central driver of cost and even of a positive customer experience. Most of the major steps in the lending process are incredibly document and content intensive and gaining control of the content is one of the fastest ways to implement the end-to-end digital lending solution.
The Perfect Platform for Digital Lending
What if you could satisfy regulators, leapfrog the competition, delight your technically savvy customers and reduce your cost to process a loan. Now you can and you don’t have to build this solution from the ground-up, you can simply integrate it into your current environment. You no longer have the luxury of waiting, but digital lending can be a reality sooner and easier than you think.
If you are interested in hearing more, please listen to our recorded presentation Digital Lending is Closer Than You Think or contact us directly.