The New Era of Digital Relationships and Where FI's Fit In
The near ubiquity of the internet and mobile devices has changed how Americans gather information, make decisions and even manage relationships. With a majority of 69% of US adults, and 88% of those aged 18-29, using some type of social media, the demarcation between real life and virtual life is fading.
Time and Space for Relationship
In the pre-digital era, relationships, communications and business were limited by time and space. A merchant had to interact with a customer at a given time in a specific place. Relationships were forged in brick and mortar or by one-to-one encounters. And it wasn’t too long ago that the business of lending had to be done in an office, face-to-face with a loan officer or by difficult-to-schedule phone calls with rounds of phone tag.
Now, business is done 24/7, at home, on-the-go, outside – wherever consumers find themselves and whenever they find time for a transaction. And new relationships don’t necessarily start in a physical locale or at a set time. Instead, social platforms and digital tools have created an environment of ongoing introductions and connections. We’ve moved beyond the limitations of the physical into a digital environment where we meet one another virtually – anytime, anywhere.
New Relationship Model
The rise of the digital age has changed finance profoundly. In the last few years, neo-banks and fintechs have run full-speed into digital banking and lending, bringing consumers with them and igniting a digital movement among traditional financial institutions. In fact, a recent American Bankers Association (ABA) survey revealed that roughly half of large banks and a third of small banks are already using a digital loan origination channel. What’s more, about 80% said they’re interested in digitizing their small-business loan processes.
Digital technology is empowering financial institutions to initiate interactions, enhance relationships and create seamless experiences for account holders and their own employees. Being more available to account holders no longer means keeping offices open longer. On the contrary, digitization is opening doors to 24/7 omni-channel availability without the need for longer office hours.
And the evolving digital relationship model facilitates a continuous conversation between lender and borrower, enabling lenders to manage the lending process, answer questions or collect information digitally. Gone are the time and space constraints of the old relational model.
Creating Digital Space
With its digital loan application and supporting tool suite, Mirador is outfitting financial institutions with technology that creates digital space for the lending process. The Mirador Platform provides a digital meeting place where lenders can guide borrowers through the application process, provide visibility to loan status and assist borrowers in completing documentation.
Digitization is transforming the traditional small-business lending process into an experiential relationship that’s engaging, efficient and profitable. In fact, Mirador partner banks typically increase application-completion rates to 65%+ (compared to the industry average of 25%) and reduce time spent processing loans by more than 50%.
And financial institutions who make space now for digital relationships are positioning themselves to stay well ahead of the competition – and obsolescence – later.
Read more about how Mirador is helping FIs transform their traditional lending process. And be sure to view our step-by-step guide to digitization for even more insights.