4 Minutes Read.
Digital solutions are opening broader opportunities for financial institutions in small business lending and other services. Automation boosts process efficiency, leading to cost reductions while raising productivity.
For most banks, a third-party provider is the most practical source for small business lending software solutions. In order to successfully integrate a digital lending solution and enjoy its maximum benefits, your business needs a sound strategy for its journey to digitization.
Getting Ready For Digitization
The most important step to take in the digitization is establishing the need for it and getting your staff to fully commit to the effort. This may be challenging. If your business is already profitable, some staffers may not feel digitization is necessary; others may feel threatened by the new technology.
Once you clearly explain the advantages of digitization, however, you can relieve staff concerns about the change and most will enthusiastically support the move:
- Digitization is not meant to replace human expertise but allows it to focus more effectively on unconventional or problematic loan applications and on more personalized customer service.
- Digitization allows you to process a greater volume of business at a lower cost and expand your market to customers that may have been considered otherwise unprofitable.
- Customer demand is driving digitization at a rapid pace in the industry. Moving quickly to embrace the trend will give your business a competitive edge.
Once your business is fully committed to the digitization journey, it is important to closely monitor its progress. Support your staff by providing training on the new software. Selecting the right vendor that offers an intuitive, user-friendly solution and attentive customer support will greatly aid in this.
After implementation, keep your staff engaged by monitoring productivity and efficiency gains. Seek and act on staff feedback as well; your front-line personnel working with the new program are the best source of information as to its effectiveness and possible problems that may arise.
Keys To A Successful Digital Lending Strategy
The specific steps to implementing a digital lending solution in your business will naturally depend on your circumstances and the digital package you select. But there are some fundamental principles common to all successful digital lending strategies:
- User-centric design: An effective digital lending strategy provides cross-channel functionality, which benefits both your customers and your staff. It provides a seamless experience for your customers regardless of the platform they use for engagement – whether online, using a mobile app or in person at a branch. And it allows different areas of your business to share and access customer information quickly.
- Scalable and customizable infrastructure: An effective digital lending strategy is built with tools that allow you to customize credit scoring and workflow steps, and scales easily based on your loan application volume.
- Agile development: The digitization strategy should make “working in silos” a thing of the past. An agile digital lending solution allows you to look beyond the digital lending process to complementary areas of your business where you can enhance cross-channel support and integration.
- Data-driven decision-making: Intelligent digital lending solutions should expand your potential market with richer data, allowing you to reach more customers while still maintaining robust risk and compliance standards.
MonJa may be the right digital lending solution for your organization. Learn more about how to successfully implement digitization in your business by downloading the free e-book today. Get efficient and easy-to-use digital lending from MonJa by requesting a free personalized lending automation demo here.
Request MonJa's Loan Underwriting Demo
Our platform supports consumer term, C&I, CRE, auto and other small business loans.