Financial accessibility has been a challenge from the beginning of the banking. But with the advent of digital finance, this challenge has created a great opportunity for all the players involved- banks, nonbanking entities, customers, and even led to the inclusion of those underbanked or unbanked. One of the most transformative solutions in the digitization of banking is digital lending.
Digital lending transforms traditional credit products and services, and empowers both financial entities and customers with: better credit decisions; streamlined, “stickier” customer experience; and significant time and cost savings.
And now with COVID, the need for digital lending has never been more crucial. Compulsory confinement, social distancing, and remote work has altered the everyday lives of everyone, including their finances. Although, the adoption of digital channels, electronic payments, and remote working were made popular pre-COVID, now they have become even more essential components of financial users.
As mentioned, credit services are a foundational aspect of banking. Yet, long and demanding processes and procedures, as well as polarizing strict rules and laws, have given credit a bad name. But now, with the digitalization of banking, technology both simplifies and quickens the lending process. Digital lending has resulted in an endless list of achievements, including: more user-friendly interfaces, instant payment options, paperless solutions, expanded accessibility through mobile channels, alternative credit innovation, SMB tools, and more.
Yet with greater innovation comes an inherent rise in risks. Interestingly, the best solutions to combat these risks are found in technology. Advanced technology such as security-as-a-service, data security tools, and expanded fraud detection solutions are among the most popular. Financial technology leaders likeGoogle Cloud, IBM, and Intel realize the growing digital threats and have come together to lead the conversation on security and financial education. The Confidential Computing Consortium and other important working groups are leading the financial sector with the innovation of better solutions, fighting for more flexible regulation, and discerning regularly how to ensure the current and long-term success of all.
Cobiscorp is a leader in the financial technology, and wants to empower you and the financial lives of your customers with financial agility. Visit our website or contact us directly to learn more about our transformative offerings.