Online Lending – Are you keeping up with the Digital Natives?

Embracing online lending service options can provide numerous advantages, such as reaching a broader audience, enhancing customer convenience, and streamlining the application process. I have noticed a shift attending the various consumer finance industry trade shows, as more lenders say they are diversifying their services and going online to keep up with younger generations. While several lenders continue to operate under the brick-and-mortar model, others have chosen a hybrid approach, offered online applications, and kept the loan closure process in-office.

Has your company made the move to offer online lending service options? If not, what is holding you back?

According to Gallups research, “millennials were the most likely generation to use both online (92%) and mobile (79%) channels and they tend to use those channels more frequently than older generations.”

Whether your company is planning to go fully online, or considering a hybrid approach, it is important to know what features your loan management software offers to support your business needs.

When choosing the right loan management system, consider these key online features:

• Origination System – ability to track applicants and loan information.
• Online application portal – an online company branded application portal for borrowers to submit applications.
• Online application stipulation portal – allows your borrowers to submit required documents/stipulations during the underwriting process.
• Electronic signature integration – sending loan packets and important documents directly to the consumer for electronic signature (Be sure your provider offers ID verification and e-vault solutions if required by your bank).
• Funding – ability to disburse funds electronically.
• Communication tools – Email, text, and outsource mailing services to communicate effectively to your borrowers.

Ultimately, staying attuned to industry trends and customer preferences will help ensure your company remains competitive and responsive to the evolving market.