Digital lending platforms (DLPs) are revolutionizing the way loan origination works.
Nowadays, it isn’t uncommon to see lenders rapidly adopting a digital lending strategy to streamline the lending process and fulfill more loans. From application to close, digital lending platforms are highly beneficial for banks, credit unions, and customers alike.
We’ll walk you through our guide to digital lending platforms, where you’ll learn more about how DLPs allow lenders to scale loan volume and elevate the customer experience.
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Explore the full guide: 10 minute guide to digital lending platforms
What are Digital Lending Platforms?
Digital lending platforms expedite and simplify the traditionally time-intensive process of applying for a mortgage, consumer loan, or deposit account.
Legacy loan application technology is outdated. Clients communicate with loan officers, banks, or credit unions across a variety of channels (phone, email, or in-person), which can result in delays, lost paperwork, drop-offs, and a fragmented customer experience.
DLPs combat this problem by providing a single technology stack solution that enables banks to offer a seamless experience for their customers. Close more loans at a lower cost, while creating deeper, lifelong customer relationships, all through one lending platform.
Benefits of Digital Lending Platforms
Here are a few reasons digital lending platforms are essential to your success.
Seamless consumer experiences from application to close
Efficiency and automation are becoming universal expectations for consumers. The banking and lending industry is no exception.
The traditional lending process can be frustrating for borrowers due to its time-consuming and confusing nature. Digital lending platforms eclipse traditional lending methods because they are designed with customer satisfaction in mind.
DLPs offer a single system for borrowers to submit applications, upload documents, provide e-signatures, and monitor the application’s progress. Streamlining these tasks saves time, makes customers feel comfortable, and results in higher customer satisfaction.
Role-based tools for mortgage loan teams, branch bankers, and referral partners
Digital lending platforms accelerate loan transactions at every stage of the process.
With role-based tools for mortgage loan teams, branch bankers, and referral partners, lenders have access to a complete digital workspace. This framework makes it easy to manage client work while collaborating with team members across traditionally siloed work streams, all from one platform.
Automated verification and compliance checks
Digital lending platforms expedite the data verification process through integrations with financial third parties and applications. Verify identity, income, credit, employment, and more to save time across the entire application process.
Data-driven workflows augmented by artificial intelligence
With a DLP, you can automate manual steps using data-driven workflows powered by artificial intelligence.
AI technology can monitor the application progress to identify and alert lenders of issues that may delay a close. This useful feature acts as a safeguard to resolve problems before files move to underwriting.
Automated pre-approvals and in-context offers
Digital lending platforms can identify peripheral offers based on the applicant’s uploaded information, increasing exposure to products across a lender’s portfolio.
By automatically offering account opening bonuses, lower-interest rewards, or pre-approval for other qualified loans, your financial business can grow customer loyalty and increase share of wallet.
Integrations with internal systems and third parties
You’ll find that a digital lending platform enables quick information exchange with both internal and third parties, expediting the overall consumer lending process.
Digital lending platforms encourage an agile workplace while reducing frustrations for both lenders and consumers.
What to look for in Digital Lending Platforms
Not all DLPs are created equal. Look for the following must-have features when shopping for a dependable digital lending platform:
- User-friendly interface: Having a user-friendly experience ensures end-to-end application completion and submission, which is most critical to customer satisfaction.
- Self-serve pre-approval: Build customer confidence and lower the tendency to shop around.
- Data verification: Connect to secure financial data sources to verify consumer data.
- Automated conditions monitoring: Self-monitor for issues that could delay a close.
- LOS: Integrate across all teams and channels to collect and transfer digital loan information.
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A positive digital experience is crucial for retaining existing customers and encouraging new business through word of mouth.
Digital lending platforms empower your financial services company to deliver superior consumer lending experiences. DLPs also enable lenders to collaborate, work faster, and close more loans.
DLPs are modernizing the world of consumer lending. Is your business ready to adopt a digital lending strategy?
If you’re hungry for more, check out our 10 minute guide to Digital Lending Platforms. Our free resource will show you how to enable higher-performing loan teams. Explore how you can:
- Tap into growth opportunities before your competitors do
- Unify transformation efforts
- Simplify LOS migrations, and much more