The loan origination process is long and complex. Financial institutions, including credit unions and other lenders, are turning to digital solutions to help simplify and streamline the process for their borrowers.
When it comes to digital lending software, keeping borrowers engaged is key. If a lender can keep them interested and invested in the process, they are more likely to stick with the company and complete their loan. In this article, we will discuss ways to keep borrowers engaged. Here are some tips that will help lenders create a successful and engaging lending experience.
Ways to keep borrowers engaged.
Loan origination software solutions with digital capabilities offer several advantages for both lenders and borrowers.
Instant approvals.
Borrowers love digital lending platforms that offer instantaneous approvals because it makes the process quick and easy. When borrowers can get an answer on their loan quickly, they are more likely to stay engaged in the process.
Self-service options.
Lending software with digital capabilities includes self-service portals where borrowers can upload documentation, check the status of their loan, and make changes to their accounts. This allows borrowers to take control of their loan process and get answers to their questions without having to wait for a response from a lender.
Some digital lending platforms offer a mobile app that borrowers can use to track their loan progress, make payments, and contact customer service. This type of convenience can go a long way in keeping borrowers engaged and satisfied with the lending experience.
A helpful chatbot.
Another digital tool that can help keep borrowers engaged is a chatbot. Chatbots are AI-powered software programs that can answer questions, provide customer support, and even help with the loan process. For example, a chatbot could be used to answer frequently asked questions about the loan process or provide updates on the status of the borrower’s loan.
Chatbots answer more than 80% of customer queries and help less tech-savvy borrowers easily navigate the complicated process of obtaining a loan.
Digital signatures.
Another way to keep borrowers engaged is to use digital signatures. With digital signatures, borrowers can sign loan documents electronically, which makes the process more convenient and efficient. This also allows for a paperless loan process, which is more environmentally friendly and can save borrowers money.
Benefits of using a loan platform with digital capabilities.
Better communication.
Another borrower convenience digital lending platforms offer is better communication between lenders and borrowers. In the past, most communication between lenders and borrowers happened through phone calls or in-person meetings. Both parties had to wait for each other to become available.
With digital lending platforms, communication can happen in real-time through the platform’s messaging system, allowing for a more responsive and efficient loan process. It also provides a more efficient means of communication and gives borrowers the ability to see all correspondence in one place.
Reduced paper documentation.
One of the biggest annoyances of borrowers is having to fill out a ton of paperwork. With digital lending, they can fill out forms online and sign documents electronically. Digital lending software saves borrowers time and reduces the chance of errors.
Improving the customer journey.
As we mentioned, digital lending platforms can provide a better borrower experience by making it easier for borrowers to apply for and receive loans. In addition, digital platforms can also help lenders.
Digital lending platforms can also help keep borrowers engaged by providing them with a better experience. For example, loan origination software can make it easier for borrowers to track their loan progress and see how much money they have left to borrow. This transparency builds trust between the borrower and lender and keeps the borrower engaged in the process.
Reduced loan processing time.
Digital lending solutions can help speed up the loan process, making it more efficient and reducing processing time. By automating tasks and workflows, lenders can reduce the time it takes to approve and fund a loan.
This is beneficial for both borrowers and lenders. Borrowers can get their money faster, and lenders can move on to the next loan quicker.
Improved data security.
When sensitive borrower information is stored in paper files, there is a greater risk of it being lost or stolen. With digital lending, borrower information is stored securely in the cloud, and lenders can control who has access to it.
Cloud-based software solutions help protect borrower information. It also reduces the chance of fraud.
Operational efficiency.
For lenders, digital lending platforms can automate repetitive and time-consuming tasks, freeing up staff to focus on more important things, like creating relationships with borrowers and other stakeholders.
The lending tasks that digital platforms can automate include:
- Applying for a loan
- Uploading supporting documentation
- Tracking the status of the loan
- Requesting changes to the loan
- Sending notifications and reminders
Conclusion.
Keeping borrowers engaged is key to success when it comes to a digital lending platform. A digital lending platform should offer several advantages to maintain the interest of lenders and borrowers. These advantages can include operational efficiency, transparency, the ability to improve the customer journey, and instant approvals. By providing these features, digital lending platforms can help close more loans and keep borrowers happy.
How Capacity can help.
Capacity is a support automation platform that facilitates quick and easy mortgage processing. We provide operational efficiency by automating the tasks that are needed to support B2B and consumer loans. Our platform also offers transparency to all parties involved in the loan process so that everyone is always on the same page.
In addition, our platform helps improve the customer journey by providing a mobile-friendly chatbot app for borrowers to use throughout the process.