We’re in an age where technology shapes our lives. Technology has had its input in 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 bettered the Fintech industry, the known lending channels were banks, and banks had strenuous processes to give loans to individuals or business owners. This meant it wasn’t easy to access loans at the time when you need them. At some point, people had to resort to informal lending bodies to meet emergency cash requirements i.e from parents, friends, cooperatives, etc. Today, technology has helped to simplify the lending business. Flexibility and accessibility are two improvements in the lending niche, which Lendsqr provides.
In a country like Nigeria, Fintech companies are beginning to change the methods of lending that have been practiced for generations which are supported by the warm embrace of technology.
First off, let’s discuss what it means to upscale your lending business.
Scalability has become very relevant in today’s business society as technology has made 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.
Let’s take a look at why you need technology to scale your lending business.
Running a lending business manually doesn’t make it sense. It allows for more stress. It’s assumed that only traditional lenders still use tools like spreadsheets and calculators to manually upscale their business.
A platform like Lendsqr has simplified lending processes which have 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 burden or reduce the burden of using traditional lending models. Spreadsheets, calculators and other traditional ways consume time and are more strenuous.
As one of its features, it allows you to easily administer a team. This helps you add up team members who can as well manage the business with you. 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 to make important decisions because users see 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.
Traditionally, loan application and approval were rigid, time-consuming and quite complicated. Technology in the financial space, to be specific- lending has eliminated paperwork and reduced time waiting to get approved a loan. Today, because of technology, loan applications are received and approved within hours and even minutes.
The importance of technology to upscale your lending business includes;
- Automation of Key Processes
Despite using data to determine the creditworthiness of the borrower, Fintech companies also make use of technology to automate several processes. For instance, some Fintech companies have automated risk assessment, thereby speeding up the lending process.
Technology has helped to tighten security. This means, consumer details are safe, and all possible measures are undertaken to avoid data breaches.
- Utilization of data
Data is one of the most potent tools of Fintech companies and these companies make use of a wide array of data. Technology makes it possible to collect data within seconds and determine a borrower’s creditworthiness. Technology makes it possible to determine a person’s creditworthiness by pulling up the person’s credit history.
Technology has allowed lending businesses to be designed to scale easily whenever any information is required in the future to accommodate processing, data, geographic growth, etc as an expanding business may require.
- Automated Decisions
Technology allows for an automated decision which lets a lender do away with manual steps and use data-driven processes. This can be used to evaluate the qualifying criteria for the appropriate level of funding, interest rate, and period for the loan.
As a final thought, 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 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.