COVID-19 has curbed the globe, unexpected and unwanted. Virus outbreak has belted lenders with a ripple effect the size of a perfect storm- record refinancing demand, time-consuming credit checks, fluctuation in credit scores and lots of questions about getting short-term loans until income stabilizes. Lenders should bear in mind that this crisis is likely to reinforce, in direct proportion to its extent and duration and maybe even more, several existing trends.
Lending industry is feeling the heat amidst the transforming dynamics.
- Workplace dynamics and talent management durably changed after an extended period of remote working
- Customer routines and expectations shifted with expectation for proactive communication and care
- Operational resiliency remains critical with mounting risks of pandemics, societal and geopolitical tensions, and climate change
- Rise in cyberattacks and fraud, as businesses and employees adapt to remote working.
The Corona Virus outbreak is, hopefully, a once-in-a-century event. For now, however, it’s too early to think about the lessons we’ll learn. It’s crucial to address client’s concerns and provide services with as little interruption as possible.
Despite the COVID-19 impact in Lending is quite worse, fortunately, there is a brighter side here. Economic uncertainty creates opportunities for new business models powered by emerging technology. For FinTech, the future is Contactless
Contactless Lending, a great boon to face the COVID-19 IMPACT IN LENDING
Amidst this bleak scenario, ‘Contactless Lending’, greater adoption of digital channels, enables firms to cater to the needs of clients globally.
As countries go into lockdown, people are forced to keep social distance and work from home. This crisis highlights how important digital capabilities are and products are, and how important speed and seamless integration are. Contactless payments and branchless lending are widely implemented.
Here is a list of digital initiatives to not only survive pandemic but thrive on the other side of it.
- End-to-end loan digitization
- e-signature workflow solution
- Automated follow-up solution
- Virtual service option
- Data analytics strategies
- Advanced chatbots
Those who invest in advanced analytics, innovation, and digital transformation can leverage their customer experience and digital product advantages more than ever.
Business downturns are not uncommon. Those firms that recognize and adapt to new market conditions have the chance to outperform. For lending firms of any size, the message is clear: Digitize or risk losing customers — or even risk failure.
