When you think about the lending industry, you don’t often think about the use of technology to help get you a loan. Most people think it is all about completing paperwork at a bank when they need a personal or business loan. However, there are many ways that this industry has benefited from the use of technology.
So, we will discuss five main benefits of technology in the lending industry and why they are positive.
Benefits of Technology
1. Online Automobile Loans
Getting a loan for a car online is simple now that you can pre-qualify for a certain amount with some of your personal information. Then, with just a few clicks to pick which vehicle make and model you want, getting a car loan takes much less time.
Gone are the days where you have to sit and do reams of paperwork, negotiate on price and shop with salespeople hovering around you. This can all be done online in just a matter of minutes and makes the whole process so much simpler.
2. Not Just Your Credit Score
Remember when you would go into the bank and apply for a loan in the hopes of starting a business, only to get shut down because of your credit score? Well, that is not as much of an issue anymore with lenders using more data to decide whether you are worth the risk.
Maybe you have had some hard times that lowered your credit score, but now you have a better job and can pay off your debts. This will be taken into account, even if your credit score is still recovering so that you get your business off the ground.
3. More Competition
When you are looking for a lender online, you now have access to a lot of options, right at your fingertips. There are even sites that will do comparisons for you so that you can find the best lender with the most competitive rates, returning facts and figures in seconds.
This allows you to choose between multiple options and get the best deal for you. Also, this won’t take up a lot of time.
4. Cutting Costs
Technology tends to cut costs in every business in which it is deployed, and lending is no exception. With websites like Become.co making it easier than ever to get a loan, businesses don’t have to spend more money on overhead costs.
This can make a big difference to smaller companies who might be struggling, and having a bit more wiggle room with expenses is always better for a business than being strapped for cash.
E-mortgages are a fairly new concept that is becoming popular is the use of technology for taking out a mortgage for a home. Buyers that are looking for a new house can use the same type of process for car loans for buying a house and getting the mortgage right away. This fast-tracks the process and makes it easier for families to get into their houses in less time.
Technology has a lot to do with convenience, and with the lending experience not being so great, new tech allows it to be a better one. Whether you are buying a house or a car, technology makes it a fast and easy process.