We’re in an age where technology shapes our lives. Technology impacts almost every sector of human life and businesses are not excluded. Today, technology is causing a revolution in the lending industry.
For a long time, before technology improved the Fintech industry, banks were the known lending channels. But getting a loan from a bank was a strenuous process. Hence, it wasn’t easy to access loans when needed and people would resort to informal lending bodies to meet emergency cash requirements i.e from parents, friends, cooperatives, etc. However, technology has helped to simplify the lending business. Flexibility and accessibility are two improvements in the lending niche that Lendsqr provides.
Fintech companies are changing methods of lending that have been practised for generations, supported by the warm embrace of technology.
First off, let’s discuss what it means to upscale your lending business.
Scalability is very relevant in today’s business society as technology makes it easier to acquire customers, expand markets and scale. Scalability describes a company’s ability to grow without being hampered by its structure or available resources when faced with increased production.
According to Investopedia, a system that scales well will be able to maintain or even increase its level of performance or efficiency even as it is tested by larger and larger operational demands.
Now, let’s take a look at why technology is important for scalability.
Why you need technology to scale your lending business.
Running a lending business manually is strenuous. Only traditional lenders rely on manually upscaling their business with tools like spreadsheets and calculators.
Lendsqr has simplified lending processes and created room for business scalability and high growth opportunities. The reasoning behind the Lending-as-a-Service (LaaS) model of Lendsqr is to provide low operating costs and reduce the burden of using traditional lending models. Spreadsheets, calculators and other traditional ways consume time and are more strenuous.
For instance, it allows you to easily administer a team. With this, you can add up team members who can help in managing the business. Lendsqr allows you to create loans, manage loan applications, approve and modify loans, track repayment and more from a simple dashboard. You can also verify loan applicants by using automated background check tools: BVN, email, account number and phone number. It assists you in making important decisions by showing you how loans perform in real-time with a complete history of all transactions. These unique features are the reasons why you need technology, in this case, Lendsqr to scale your lending business.
In the past, loan applications and approvals were rigid, time-consuming and quite complicated. But technology in the financial space, and specifically lending, has eliminated paperwork and reduced the lead time Today, loan applications can be received and approved within hours, even minutes, thanks to technology.
The importance of technology to upscale your lending business includes;
– Utilization of data
Data is one of the most potent tools of Fintech companies. These companies make use of a wide array of data. Technology makes it possible to collect data within seconds. For example, it can help in determining a borrower’s creditworthiness by pulling up the person’s credit history.
– Automation of Key Processes
In addition to using data to determine borrowers’ creditworthiness, Fintech companies make use of technology to automate several processes. For instance, some Fintech companies have automated the risk assessment process, thereby speeding up the lending process.
What’s more, technology has helped to tighten security. As a result, consumer details are safe and all possible measures are undertaken to avoid data breaches.
Technology also allows lending businesses to scale easily. It provides information and automation to accommodate processing, data, geographic growth, etc as an expanding business may require.
– Automated Decisions
Furthermore, technology allows for automated decisions, which lets a lender do away with manual steps and use data-driven processes. This helps in evaluating the qualifying criteria for the appropriate level of funding, interest rate, and period for the loan.
To conclude, financial technology is massively changing the loan process in exciting ways. Right from how you interact with the lender, to loan processing and disbursement time. Technology is certainly revolutionizing the online lending industry like never before. This means that loans have become more affordable and flexible than ever before. It also means that lenders don’t have to stress themselves to scale their lending business.