Like every previous era, the 21st century has gone through many changes and transformations, but unlike previous generations, we are experiencing change with an unmatched and unseen speed. We have seen an oblivious shift towards computer and smartphones, and how things are evolving around them. All thanks to technological progression. Technology has not challenged the conventional norms but also provided possibilities which were a mere fiction to previous generations.
Similarly, technology has changed the way we learned and perceived our work and lives. And consistently, we are observing industries getting disrupted in the hands of emerging technologies like artificial intelligence, blockchain, data sciences, etc. We are always connected on-the-go, getting access to instant music, communication, games, movies, etc. in our pockets. From healthcare to business, every other function has evolved at an unprecedented pace. Even technology has not only improved vertically in its domain and depth, but it also spread horizontally with every other function or utility out there.
WHAT IS DIGITAL LENDING?
On similar lines, one of the most critical yet essential industries for businesses got the flavor of disruption and, i.e., lending and investing. Conventionally, the lending process used to be grueling, time taking and was not easily accessible for every scale lender. But just like every other industry, the lending industry got disrupted too.
Digital Lending is an advanced way of processing loans through digital channels with better customer engagement and informed credit decisions. Now, digital lending provides almost every benefit which conventional did not promise to offer. Additionally, because of its digitization pie size of the lending has increased as new frameworks and structures have provided benefits to both lenders and borrowers like provision and offering of Best Small Business Loan Rates as per their needs. Thus with digital lending, businesses can get the best loan rates that suit them.
HOW IT WORKS?
Unlike traditional lending, digital lending is quite simpler. It does not require a business to write a detailed application that includes various information to get eligible for a loan. It removes the need for traditional mediums as it uses online platforms to apply for a loan. Businesses can easily get a loan with the help of the digital lending process as it is simple, and only requires a business to apply online and provide bank statements of the last three to six months. Within a couple of hours or days, the loan would be processed, and business can receive their loan.
BENEFITS OF DIGITAL LENDING
Apart from initial costs and logistical setups (which are worthwhile investments in the longer run), digital lending provides numerous benefits. Let us discuss some of the basic benefits digital lending provides in comparison with traditional lending:
- Easy Application Process and Delightful Customer Service
Because of digitization, digital lending eliminates geographical barriers when applying for such loans. It saves a massive amount of time as an applicant can immediately begin loan applications from anywhere. Digital platforms enable sophisticated procedures for entering data and other required details as such processes are designed with the end customer in mind, rather than the lender’s convenience. It decreases the chance of error in entering data, and verification of required documents can be done through digital scanning. Whereas conventional lending required every process to be followed manual and required human labor, which made the procedures slow and painful.
- Automated Loan review and renewal
Thanks to digital lending, the entire process of loan review is automated, making it easier for businesses to apply for loans instantly. Also, automation reduces bank’s costs and removes the need for paperwork for getting a particular loan. Digital lending provides a dashboard view for all the loan data, including loan renewals and existing loans.
- Efficient Decision Making
Time is money for business, and the competition is cut-throat. No one wants to wait for the protocols, and quick money access has become a norm in the business. Severe delays in procedures of approval and evaluation usually result in a business loss to a competitor. Digital automation allows companies to simply process and automate the leg work and ease the operations. Additionally, computers can do better decision making than humans if programmed and trained enough, whereas humans always possess a tendency to error or judgment lapse.
- Quick and less-time consuming
Digital lending is quick. It reduces the time with the help of automation, making the lending process faster and more convenient. Digital lending omits the time-consuming manual tasking for a lending process that includes verification and documentation. Thus, automatic systems, loan applications are proceeding faster, making it easier for businesses to get loan approval quickly.
CONCLUSION
The lending business is transforming in the digital age, and like every change management, proceedings causes a lot of hassle initially but sooner or later, prove to be beneficial. Digital lending is the current reality and the future of the business. And underlying advantages will narrow the arc of conventional lending business altogether. Digital lending makes it easier for businesses to apply for a loan without the need for manual verification and documentation. Thus making the overall lending process faster and more convenient.