Not many people (both of them, as the joke goes) are unaware of how technology rules our lives. It isn’t even in physical things like our cars, phones, smart homes, and medical devices, though they have advanced tremendously in recent years.
Technology in the banking, peer to peer lending, and loan industry means better and smoother experiences for you. No more waiting for weeks to learn if you got a loan. No more carrying a file folder of papers with you to give to the loan officer. No more asking for credit reports. Bad credit? No problem. Want to hear how lending technology is reshaping the loan origination process?
Table of Contents
The Cloud
Millions of people use The Cloud without knowing what it is or how it works. We think it’s pure genius. When you stream videos on YouTube or a movie on Netflix, then you’re using the Cloud. Social media runs on the Cloud as well as financial and most work websites.
The Cloud was invented so we wouldn’t have to keep information on our hard drives, where it could be hacked into and either stolen or destroyed. Saving things to GoogleDrive and Dropbox are good examples of this. So how does the Cloud reshape the loan origination process?
The days of reconfiguring individual computers with the latest loan origination software are gone. The days of calling the IT guy to fix a glitch in your program are over. The extinction of the IT department as well as the overhead it required has enabled the peer to peer lending bad credit industry to use loan origination software or LOS both more efficiently and certainly more securely.
This LOS can be deployed instantly, be upgraded instantly, be scaled down to mobile availability, and can tap into sites to obtain credit information, financial details, employment, identity, and other pertinent information at light speeds. Before the Cloud, all this had to be laboriously done by hand which was hard on your nerves.
Automation, AI, And Big Data
It’s a new world, one in which lenders no longer hoof it to different banks in order to facilitate a loan. The term Big Data was coined to identify all the information available to the peer to peer lending bad credit as well as conventional lending companies. Artificial intelligence combs through all that information according to pre-set parameters to cull that which is useful to the application. Automation then steps in to complete all the necessary loan paperwork.
Technology is capable now of determining if your bad credit can be used to get a loan. It can take sketchy employment records, for instance in the case of a young person with his first job, to use as the basis of a loan. Technology is even capable of deciding you have the type of personality to repay a loan on time. An example of this is Singapore startup LenddoEFL. They’re using AI to analyze behavioral characteristics to determine whether an applicant will repay a loan on time.
Final Thoughts
Saving time and money is a large part of life. When peer to peer lending bad credit and conventional lending institutions don’t have to pay overhead, IT, and employee costs, then you, the applicant, pay less for your loan and its processing. There are so many bad credit loans out there that anyone with even no credit, such as young people just starting out, can get a loan.Technology plays a huge part in the saving of time and money. When all you have to do is download loan origination software that uses AI, Big Data, and automation to process information, then you can offer loans to applicants at very little cost. The software can even predict that an applicant will repay his loan on time. All the loan officer has to use his Spidey sense for is seeing the relief in the applicant that he’ll be able to pay for car repairs, a second mortgage, or paying off medical bills. Visit wealthry for more information
