November Banking Update:
Creating an Integrated Experience
Most customers are familiar with the traditional approach to lending at a bank – cumbersome paperwork, multiple contacts and confusing workflow, back-and-forth e-mails, phone calls and messages, and waiting. It’s a lot of work and a very slow process, but this way of doing business is no longer acceptable. Customer expectations have changed drastically over the last decade and people are demanding a simple, more integrated experience. Borrowers expect online solutions to quickly and clearly move them through the application steps without being slowed by the hassle of traditional lending. Regulated financial institutions that don’t want to be left behind must integrate and automate the most labor-intensive pieces of the loan application process to reduce the amount of effort required by customers.
Keys to a successful integrated experience
Eliminate paper – Paper forms create unnecessary work for customers and lenders, slowing down the entire process. Paperwork cannot be easily changed or updated, leaving room for more errors. It also makes the process less secure for borrowers and lenders. By eliminating paper forms and moving them online, a direct and efficient workflow can be established.
Create a smart application
While simply putting a PDF version of the standard hard copy form online might be a step above using paper, it’s still not going to create major efficiencies. The application needs to be “smart” and integrated into the entire workflow. If the application can be responsive and change depending on the data being entered, then banks can likely cut down the time it takes to complete the process, making it a less cumbersome experience for the customer.
Retrieve existing information
If information is needed about an individual that already exists elsewhere, link to that system instead of requesting it from the customer. By automatically retrieving data and information, there will be less room for error and it can speed up the entire process.
Centralize all communication
Forget all the e-mails, phones calls, text messages, voicemails, etc. – moving all communication into one system will minimize confusion and make an entire history of communication retrievable in an instant. With centralized communication, each stakeholder clearly understands which steps are complete and what should happen next.
How to partner for success
Creating an integrated modern banking experience from the ground up is a major investment. That’s why Fintech partnerships are on the rise. Banks are realizing they don’t have the expertise, time or money to make these improvements themselves, so they partner with companies, like Mirador, who already do it so well. Mirador’s platform powers customer acquisition, digital loan application and digitization, intelligent product routing and pre-screening, data management and borrower communication. Built exclusively for banks, credit unions and other traditional lenders, Mirador supports all small business loan products including lines of credit, term loans, SBA backed loans, commercial real estate, and collateralized loans for up to $20 million.
The time to change is now
In today’s always-on business climate, the pace of work and collaboration is constant. Banking can’t wait around. Loan seekers might not need to borrow money immediately, but they expect to meet and establish a relationship with their banker on their time, at their convenience. Applying for a loan shouldn’t mean 30+ hours of confusion. If it is, people and businesses will take their money somewhere else. As more and more alternative lenders and fintech companies eat away at the traditional bank’s market share, the window of opportunity to create a better customer experience is closing. People want speed, but they also trust their bank. If a trusted and established bank could also provide lightning speed and a pleasant experience, that bank would do very well. Such a transformation could revolutionize the small business lending process.