In this fast-paced world, speed and convenience often get priority over price. The consumers opt for lenders with quick lending processes and can disperse the loan in a day or those with instant approvals.
To ensure fast processes, it’s essential to have proper lending software in place because manually, it’s not possible to streamline the processes for quick approval and disbursal. Only with digital lending software, it can be done without sacrificing credit quality or efficiency.
Here are some of the best practices for faster loan applications processing, approval, and disbursal:
Look for the Right Prospects
Targeting the right prospects for the type of products you are offering is the first step towards faster processing, approval, and disbursal. Even the most sophisticated bank lending software won’t be able to convert the wrong customer. Thus, optimize your SEO (Search Engine Optimisation) tactics and prospective strategy so that you get the right prospects who are more likely to pass through the credit screens.
Optimize the Digital Portal
For a quick loan process, many aspects like the application of loans happen online through your website or digital portal. A survey suggests that if the site is not optimized, 79% of the prospects hesitate to complete the process. Also, if the website takes more than 3 seconds to load, almost 50% of the possibilities abandon it and move on to the competitor’s site. Thus, optimize your digital portal to make these prospects stay and complete the process. The consumers today are on a lookout for cutting-edge products, cybersecurity and customer service; a dull and slow portal makes them question the quality of all the three. So, optimize your portal and have regular audits to fix things if they arise.
Make the Application Process Easy and Simple
Providing a simple and easy application process – one that requires the minimum amount of information and the minimum number of steps to fill is mandatory. Good user experience is a must for having more customers and having more steps works as friction, destroys the user experience and also works as a speed deterrent. Never use the application path to capture additional borrower information, but make it a simple and easy process.
Some of the must-have aspects of the loan application process are listed below:
- It should have a minimum number of steps.
- The form should be responsive and should integrate the desktop and mobile devices so that if the applicant starts filling it on one device, it can be completed on another without requiring to refill the fields.
- It should have an auto-save function implemented.
- It should also include the red box tactics so that the next field remains disabled until the time you complete the current area.
- Incorporating a debit card payment system for instant access to funds fastens the disbursal process.
Automate the Identity Verification Process
Manual identity verification is very time-consuming. Hence, automating this process will result in fastening the lending process to a great extent. Having a digital lending software, which replaces all the manual identification processes and is integrated with all the regulatory compliances specific to the product and the local jurisdiction, will help to a great extent.
Encourage Prospects to Participate in the Process
Educate and motivate consumers to do their part. If they are demanding faster approvals, they should also play their role diligently. You can encourage them by posting informational articles about how to complete the application form efficiently, the data they need to enter, the supporting documents they need to upload and other such guides. Such articles will educate the prospects, and they will be ready with all the required information to complete the application process in one go.
Faster processing, approval, and disbursal of loans require a comprehensive solution, which includes automating some of the processes, optimizing the digital portals and encouraging user participation.
