Embracing disruption is the need of the hour to survive and succeed in the rapidly and ever-changing money lending landscape of modern times. You will need to make sure that your IT executives agree and work in unison with the rest of the management team.
Typically, the success of money lending business will largely depend on the posture and the way in which you wish to adopt such technologies and the changes that these technologies will bring in with its effective implementation and use.
In order to become a leader in the industry, it is required to be fast learners and followers. This will help you in two ways such as:
- It will help you to react to these changes as and when it occurs promptly and successfully and
- It will also help you to reap the inherent benefits of these technologies to its optimal level.
Irrespective of the direction you choose, it is elementary that you devise a clear and more comprehensive strategy to move forward, stay competitive and survive in this landscape.
Staying competitive in the industry
Ideally, there is no denial of the established and proven fact that the financial services industry is currently undergoing a big and significant digital revolution for the better. This has resulted in several things such as:
- It has increased the level of competition among the financial institutions, banks, alternate and online money lenders such as the likes of Liberty Lending and others
- It has provided the consumers with a larger and more diverse range of borrowing options with ease of access and
- It has provided the financial service providers to design better and more effective financial products to deliver a top class user experience and full proof and seamless service.
On the whole, the use of technology has enabled the financial service providers to create and maintain a better customer relationship.
- Not only in terms of services and better financial products, but the ever-changing technology has also motivated the banks and financial institutions to create a stronger and more user-friendly fraud protection system.
- In addition to that, it has helped the money lending machinery to find a distinct niche between the loaning opportunities and the inherent risks by following a better and newer approach and lending policy followed.
- This has in turn leveraged machine learning and use of more advanced analytical tools to minimize lending risks and therefore implement a better and winning strategy.
Therefore, to stay competitive and successful in this field, it is required to know the different technology forces that are significant and matter most for the modern financial services industry in 2019 and beyond. These are:
- Fin Tech services that will shape up and drive new business models
- The embedded sharing economy in every segment of the financial system
- The blockchain technology that will shake the entire industry making the service better and more foolproof
- Digital lending solutions that will become the mainstream of this segment
- Use of ‘Customer Intelligence’ that will act as a significant predictor for the business and revenue growth along with the profitability factor
- Use of more advanced robotics and AI that will create a new wave of localization and ‘re-shoring’
- Public cloud technology becoming the most dominant and effective infrastructure model
- Cybercrime, fraud and cyber security becoming the most primary risks that the financial institutions will face
- Use of more technology driven and innovative solutions and
- All regulators turning towards technology as well.
All these are related to the financial services provided but with the use of technology and mobile solutions, collections of loans will also see significant changes in 2019 and the years to follow. These mobile solutions are proven and tested to track collection agents and their practices in EMI collections to ensure that they abide by the laws and regulations of fair collection practice. In addition to that these mobile solutions will also provide help in several other aspects of collection such as:
- The activities of the on-field recovery executive can be tracked by the use of a simple and more intuitive mobile app.
- This will also help in managing their daily activities because it will enable the collection of useful and more authentic data right from their point of execution.
- The GPS technology used will help in providing with more accurate information that may include the duration and exact time of a visit as it can automatically calculate these with the help of clearly mapped meeting locations.
- It will also ensure that the productivity of the collection executive is improved by providing with more daily and weekly and monthly activity reports that can be analyzed on the fly to perceive to collection efforts of the executive.
- In addition to that, these newer technologies will help the user to gather more detailed collection evidence and details such as cash or check with the built-in option to take snaps of the checks collected.
All these features, facts, data and evidences will ensure that you can easily identify a non- performing collection executive or anyone following any unfair collection practices that are against the government set standards of collection. Apart from that, you will also be able to identify the NPAs or non-performing assets to minimize the risks and ensure that you deliver a whole new level of service to your customers.
Priorities to look for
You must, therefore, look for the priorities so that you can keep up with the need and trend of using technology in the money lending business. Your list of priorities should include:
- Updating your IT operating model
- Being prepared for the new normal
- Curbing costs by simplifying the legacy systems
- Adopting robotics
- Taking SaaS beyond the cloud and
- Building technology capabilities to know more about the needs of your customers.
This will ensure that you are well prepared with an architecture that will help you to connect from anywhere using anything. Just make sure that you have access to the talent and set of skills needed to select, implement, execute, and win your business goals and pay abundant attention to cybersecurity.