Most Consumers Want to Apply for Loans Digitally, Survey Says

Digitizing the lending process is still incomplete for banks of all sizes. A recent survey from the lending platform Lendtech , provides further evidence that banks and lending platforms must digitize the loan application and servicing process to capture today's borrowers. LendTech, a member of the current cohort of this site's sister accelerator INV Fintech , conducted a survey in July entitled "Lending Technology Adoption." Among other findings, the survey found that email is by far the preferred method for consumers to receive loan application status updates. The majority of respondents, 56.1%, would like to be notified of loan status through this channel. Borrowers extended across all age ranges, with the largest group being borrowers 57 years old and above. More than one-fifth of respondents -- 21.9% -- would like to hear from lenders via mobile push notification or text. Alex Shvarts, CTO of FundKite, a digital SME funding platform, told Bank Innovation there is still room for the human touch in lending but that the underwriting process increasing depends on alternative data points, which are better accessed by technology. “There’s still a major human element in lending,” said Shvarts. “A critical piece of [lending] is having very smart and talented underwriters that are able to look through numbers and plug-in data. But once that is reviewed, then we’re able to score it and make an offer.” Consumers not only want their loan serviced digitally, they also want to be able to apply for loans through fully digital channels. 44.9% of respondents in the survey “prefer to apply fully online, filling out and signing all documents digitally.” Around three-quarters of respondents (71.9%) prefer to apply for a loan with at least part of the process occurring on digital channels. As the data would suggest, digital lending platforms are big business. LendingClub reported earnings yesterday and boasted a record $177 million in revenue for 2Q18. Loan originations were also on the rise. In 2Q18 LendingClub originated $2.8 billion in loans, a 31% increase compared with the same quarter last year.

Most Consumers Want to Apply for Loans Digitally, Survey Says

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Most Consumers Want to Apply for Loans Digitally, Survey Says

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