COVID-19 made businesses understand that the power of AI and neural networking need not be limited to TED Talk shows and global science exhibitions. Patients consulted their doctors and nurse practitioners through video conferences and virtual rooms. Teachers not just conducted classes but even tested their students online. So, how can financial services and lending solutions be left behind?
Banks that were still toying with the idea of changing to an integrated digital LOS software are now operating through automated platforms powered by AI. The pandemic has moved up the numbers of migrants from traditional to digital banking like never before. A couple of years back, only the intuitive enablers of automated financial services like fintech companies and a few tech-savvy customers moved to digital platforms. But when the calamity struck a stage for a global lockdown that was unimagined in the past was set. People were restricted to their homes in all the countries of the world to stop the spread of the virus.
Now that banking consumers have experienced the ease of doing business through easy-to-access platforms that can be opened even through their smartphone, there is no way that they want to go back to the legacy banking services which require a physical walk-in to the bank. Soon banks can scale down the costs involved in maintaining leasehold properties and open smaller spaces and centralized hubs for major banking services.
It is good to examine for the stakeholders of the financial services sector to take a look at four major ways banking has changed in a post-pandemic world:-
Digital lending and banking services
The Covid-19 pandemic had a major impact on global economic growth. Complete nationwide lockdowns across major countries brought economic activity to a standstill. Owing to well-capitalized financial institutions post the 2008 financial crisis and generous stimulus packages from the governments, banks showed resilience and are still braving the storm.
But if the economic activity does not resume and at a quick pace, then they may not stand the stress of burgeoning problems set by the pandemic. In foresight, banks and financial service providers, changing to automated solutions that are powered by AI, can speed up the cumbersome manual process like loan applications in a matter of a single business day.
Digital banking and lending software can be integrated into banks existing CRM without complications. These products are often a white space template and can be customized to represent the individual bank’s logo, advertisement campaigns, and other personalized effects that distinguish one bank from another.
Every bank can customize their pre-qualifications for eligibility for any product or service offered to their customer. For example, the automated loan origination software that can be accessed from multiple channels like the web or app offers round-the-clock chatbot services that prompt and help them fill out their basic details in an application. The ease of uploading all the requisite documents by just scanning speeds up the process of collecting data.
Customer-centric experience
AI-powered banking solutions offer many benefits that are non-negotiable for the growth impetus of any financial services organization in an area that ordained a much-needed overhaul. The speed with which a loan application is serviced using a digital lending platform will create unparalleled customer-centric experiences. Borrowers prefer institutions that value their time and are willing to think out of the box and go a step further to make their banking experience smooth.
The role of the bankers is elevated and they can spend time on qualitative initiatives that help them establish long-term partnerships with their customers. The customers on the other hand will be happy to receive the undivided attention of a dedicated manager and at the same time experience quick resolutions for their banking concerns.
Accurate risk management
Due diligence is a phrase that is embedded in the minds of most bankers and lending institution staff, specifically when they need to approve a new loan or track an old one. The whole process of due diligence is a continuous process throughout the life cycle of a loan. It is not just an important step to ensure the compliance of regulations to ensure that loan products that are offered are in-principle, but also a time-consuming and tedious one.
AI-powered loan origination software is super-efficient in collecting the data and cross-verifying them using API validation systems. Neural networking further uses algorithms to interpret this data accurately and populates credit analysis reports. These processes that usually take a few weeks in the manual lending process are completed in hours and sometimes even minutes to process. An underwriter has to just review the report that is generated and approve or disapprove the loan. Owing to a minimum to nil human intervention in the decision-making process, the bank can sanction loans to only applications that truly are creditworthy.
Cost-efficient banking models
When the footfall of the walk-in customer decreases and paperless workflow management becomes the norm, the existing costs will come down. The rise in customer-centric lending solutions and the increased roles of bankers who can spend time communicating with their customers will translate into future business for lending companies.
Time is money and this adage cannot be replaced at any age, including that of information. The time saved in cross-departmental communication in the stages of the loan cycle between the front and back end is reduced by digital products. The activity and information are recorded in the system and anyone with access and authority can review the information at any point. So if a small business relationship manager has to know if a loan is approved or not, he can access the information that is recorded transparently.
Conclusion
AI-driven solutions have been in testing phases for a long time. Pioneers with business foresight have started embracing this change long before the pandemic induced this as a defined solution for new-age banking practices and lending solutions. Any customer who has been serviced by the speed and efficiency of an automated digital solution is akin to a lion who tasted blood. He will be only thirsty for more and better solutions that enable him to spend less time on redundant chores and utilize them for essential work.
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By: Stephanie Ross
Title: 4 Ways Banking Has Changed in Post-Pandemic
Sourced From: marketbusinessnews.com/4-ways-banking-has-changed-in-post-pandemic/305612/
Published Date: Thu, 28 Jul 2022 19:38:20 +0000
