Digital technologies have created new expectations for consumers and businesses alike. People are accustomed to almost instantaneous responses from the services they interact with. The areas where users tend to be willing to make exceptions are increasingly few, and lending is emerging as the next frontier for process acceleration and automation. The ability to respond to loan applications with incredible speed can empower financial services firms to improve customer experiences and create new revenue opportunities.
Digital lending and loan automation technologies can empower firms to accelerate lending and modernize operations. However, finding success isn’t as simple as rolling out a loan automation system and letting it work in the background. Instead, robust risk analytics capabilities are essential in laying the groundwork for accelerated and highly optimized lending operations.
Lending automation still out of reach for many firms
Automating loan application analysis in only possible if your team can analyze relevant data and report to one another efficiently. You can’t have software automate the loan origination or decisioning process if you can’t get key users the data they need at the right time. Most financial services firms are still dealing with too many legacy processes and capabilities to adapt.
“Creating stronger data and process workflows is vital as businesses work to automate lending.”
According to a white paper from Moody’s Analytics, lenders often end up relying on manual processes, sometimes even entirely paper-based operations, during lending. In many cases, underwriting and similar tasks are handled in spreadsheets, leaving organizations in a situation where they are putting so much effort – even to the point of performing redundant tasks – into managing and communicating data that they can’t even begin to automate.
Creating stronger data and process workflows is vital as businesses work to automate lending, and risk analytics systems can make this possible.
Using risk analytics for better data visibility
Risk management processes are transforming based on digital technologies, and a Deloitte report published by The Wall Street Journal explained that modernizing risk processes can go a long way in creating the data basis needed to improve decision-making across financial services operations. The article explained that risk analytics can improve modeling, making it easier to monitor potential risk and allow employees to more easily respond in the event that risk limits are breached. All of this is possible because analytics solutions gather information from a wider range of sources and, beyond processing that data, also makes it available across multiple lines of the business.
Risk analytics platforms can transform an entire lending operation by providing the baseline data capabilities needed to inform every phase of operations. Whether you’re looking to improve scorecards and decision engines or automate certain lending decisions based on set data parameters, risk analytics provide the backend functionality you need. GDS Link offers an end-to-end risk analytics platform alongside strategic consulting services, helping financial services firms jumpstart their digital and automated lending strategies. There’s a lot to consider when modernizing operations, but we’re here to help. Contact us today for a demo if you’d like to learn more.