Although there is no shortage of online loan app ready to provide instant funding in this fast-forward financial landscape, there are issues with usability, accessibility and customer satisfaction in the lending ecosystem. There is a plethora of information available on the world wide web about the advantages, attributes and success stories of how digital lenders have changed the game, which is true. However, a minor mismatch exists between the lenders and borrowers (a few per cent of them) regarding the digital connectivity gap.
Understanding the digital connectivity gap:
We live in a diverse setting where not everyone has access to all the leading resources in terms of ease and accessibility. Hence technology can be a boon for some and a bane for others. Here comes the challenging part for lending organizations as they work leaps and bounds to encapsulate financial inclusion at their forefront. In this case, what a potential borrower expects from an instant loan app may not resonate with the leading players in the lending market. What digital lenders are willing to provide in terms of excellence may not align with the borrowers.
According to one of the latest surveys, members of the lending community agree that improving and upscaling automation without increasing the cost is one challenge they must overcome to excel in the forthcoming years. Also, deploying automation that stays afloat amidst the evolving needs of customers and businesses is something they should target by streamlining the loan origination process, transforming their assessment model for creditworthiness and providing personalized financial solutions with advanced technologies like AI, data analytics and machine learning.
What are the primary reasons for the digital connectivity gap?
Commonly interpreted reasons are:
- Digital transformation half-done- some financial institutions who claim to have embarked upon a digital journey might not have done so at full potential. And this ultimately leads to disjointed services and a lack of an integrated lending platform that undertakes end-to-end lending processes.
- Lack of coordination- there are some financial institutions where the internal operations lack a uniform approach, resulting in inconsistent data formats, interoperability and compatibility issues. This siloed process can hinder the seamless flow of information within lending institutions.
- Legacy technological stack- financial institutions that rely on outdated technologies might face difficulties retaining customers because they cannot provide seamless digital services in terms of approving fast loans and allowing them to pay later with convenience. The uber-internet generation may not meet the expectations in terms of speed, convenience and accessibility from these outdated applications, hence creating a major digital gap here.
Below are some of the reforms that digital lending platforms can follow to address this issue and ensure their services reach the maximum number of customers:
- Suppose the system has a security flaw, and the borrowers don’t trust the loan app enough to furnish their financial information. Lending institutions must ensure robust security measures in all digital touchpoints.
- Lending institutions must invest in upgrading the digital infrastructure and allocate funds for a seamless digital transformation to yield long-term benefits. With cutting-edge technology in handy, the employees also play a pivotal role within the lending ecosystem to actively enhance customer experiences.
- They should take the help of fintech companies and expert professionals to build mobile-only lending platforms for a digitally active generation. They can leverage advanced technologies to increase leads and maintain customer retention through this.
The digital connectivity gap is a challenge and a potential opportunity to establish itself more firmly in this competitive age of digital supremacy. By addressing the right reason and by coming up with concrete solutions, loan app India offers in near future will see a drastic change in the stats of happy and satisfied customers shortly because a customer-centric lending experience is what they all crave.