Financial institutions

The most popular strategy followed by financial institutions – NMP

Digitization has quickly become one of the main strategies pursued by financial institutions to improve basic processing skills, acquire deeper business knowledge and improve customer services. Digitization of loan services is especially beneficial to lenders and borrowers in the form of convenient loan applications and disbursement processes.

Digital lending services also enable financial institutions to make better loan management decisions. The focus of financial institutions on digitizing their services to achieve business efficiency and better results is expected to drive the market growth.

Various governments are pushing their favorite initiatives to ensure easy availability of credit for businesses, which is expected to drive the adoption of digital lending platforms over the forecast period. For example, in May 2018, Lending Loop, a financial institution that provides a peer-to-peer online lending platform for small and medium-sized businesses, announced its partnership with the Ontario government.

The Ontario government provided $3 million in small business loans through this partnership, which increased Lending Loop’s loans by 10%. Alternatively, regulators in economies such as the US, Singapore, UK, Hong Kong and Australia have created sandboxes to support innovations in the financial sector. These metrics are expected to bode well for the growth of the market over the forecast period.

Specifically, the emergence of innovative solutions based on the latest technologies, such as blockchain, machine learning (ML), artificial intelligence (AI) and robotic process automation (RPA), are helping financial institutions secure customer data while adding transparency to the lending process.

The added benefits of these emerging technologies allow banks, credit unions, and insurance companies, among others, to streamline their processes and improve the quality of their services. AI-powered digital lending solutions have the potential to significantly reduce loan processing time and operational costs.

In October 2020, Roostify a digital lending platform provider announced its partnership with Google. Through this partnership, the former company can apply Google Cloud AI capabilities to help its lenders process mortgage applications more efficiently and quickly.

The outbreak of the COVID-19 pandemic is expected to have a positive impact on the market growth. While several businesses are struggling to get credit following the outbreak of the pandemic, digital lending platforms have made it easy and convenient for businesses to access credit and grow their businesses.

For example, in April 2020, India Lends announced the launch of Digital Lending 2.0 to provide consumers with effective financial solutions following the outbreak of the COVID-19 pandemic.