GLIB’s Post

Fintech Zest AI secures $200m from Insight Partners The investment will help Zest AI advance credit underwriting with more accurate AI-driven scoring methods. https://buff.ly/3ZUjafM #FinTech #FinServ #Banking

In India’s rapidly evolving financial ecosystem, Non-Banking Financial Companies (#NBFCs) are carving out a significant role in revolutionizing digital lending through artificial intelligence (AI). As highlighted in a recent article by @good returns, this sector is at the forefront of integrating cutting-edge AI technologies to streamline and enhance lending processes. AI’s influence on digital #lending is profound, enabling NBFCs to offer more personalized, efficient, and secure financial services. By harnessing machine learning algorithms and data analytics, these companies are transforming traditional lending practices. AI facilitates real-time credit assessments, automates underwriting processes, and predicts borrower behavior with remarkable accuracy. AI-driven innovation is not just about efficiency but also about democratizing access to credit. NBFCs are leveraging #AI to reach underserved segments of the population, providing tailored loan products that meet diverse needs and improve financial inclusion. The AI revolution in digital lending is also enhancing risk management. Advanced predictive models help NBFCs better assess and mitigate risks, reducing defaults and ensuring healthier loan portfolios. This technological shift is fostering a more resilient and agile lending environment. As India continues to embrace digital transformation, NBFCs are setting a benchmark in leveraging AI to drive progress and redefine financial services. Their pioneering efforts are reshaping the landscape of digital lending, making it more accessible, efficient, and customer-centric. #DigitalLending #FinTechInnovation #ArtificialIntelligence #NBFCs #FinancialInclusion #TechDrivenFinance #AIinFinance #LendingRevolution

🚀 Automating the Underwriting Process: A Game-Changer in Banking 🚀 As banks strive to deliver faster, more accurate lending decisions, automating the underwriting process has become essential for staying competitive. Leveraging technology, banks can now streamline and accelerate underwriting, benefiting both customers and institutions alike. Key Benefits of Automation in Underwriting: 🔹 Speed and Efficiency: Automated underwriting processes drastically reduce manual tasks, allowing banks to process loan applications in minutes rather than days. This means quicker decisions for customers and a higher volume of loans processed. 🔹 Enhanced Accuracy: Automation leverages data-driven algorithms that reduce human error and improve risk assessment, resulting in more accurate and reliable lending decisions. 🔹 Data-Driven Insights: Advanced AI and machine learning models analyze vast amounts of customer data, from credit history to real-time economic conditions, helping banks make informed and personalized decisions. 🔹 Scalability: Automation enables banks to scale operations effortlessly, adapting to increased loan demand without the need for significant manual resources. 🔹 Improved Customer Experience: Faster, more transparent underwriting makes the loan application journey smoother for customers, enhancing satisfaction and retention. Automating underwriting is more than a tech upgrade—it's a strategic move that enhances operational efficiency and improves service quality. Embracing automation helps banks build stronger, faster, and more reliable financial services. #DigitalBanking #Underwriting #Automation #AIinBanking #Fintech #CustomerExperience #BankingInnovation

The State of Digital Lending Readiness Pymnts Intelligence The "State of Digital Lending Readiness" report explores the progress and challenges financial institutions (FIs) face in adopting digital lending solutions. Key insights: 1. Current State and Importance: Digital lending readiness is vital for FIs seeking to improve loan processing speed, accuracy, and customer satisfaction. However, only 36% of FIs have digitized more than half of their lending processes, with consumer lending seeing more automation than small to medium-sized business (SMB) lending. 2. Efficiency and Delinquency: Automated systems are linked to faster loan fulfillment and lower delinquency rates. For instance, delinquency rates for consumer loans fall from 2.1% with manual processes to 1.2% with automation. 3. Automation Challenges: Mid-sized banks and credit unions (CUs) face obstacles, including technical limitations, budget constraints, and cultural resistance. Many leaders worry that automation could harm customer relationships, especially in smaller institutions. 4. Investment Trends: FIs are committing to increasing their automation efforts, with 61% interested in fully automating processes within the next two years. The average mid-sized FI plans to invest $186 million in lending innovation over the next year. 5. Future Focus: Many FIs plan to expand their use of AI and digital lending platforms to enhance customer experience, risk management, and fraud reduction. Fully embracing these technologies will be essential to maintaining competitiveness. Document Source and all rights reserved with PYMNTS INTELLIGENCE (Shared for non commercial, informational purpose only). #digitization #digitalbanking #digitallending #automation #bfis #banks #ai

The State of Digital Lending Readiness Pymnts Intelligence The "State of Digital Lending Readiness" report explores the progress and challenges financial institutions (FIs) face in adopting digital lending solutions. Key insights: 1. Current State and Importance: Digital lending readiness is vital for FIs seeking to improve loan processing speed, accuracy, and customer satisfaction. However, only 36% of FIs have digitized more than half of their lending processes, with consumer lending seeing more automation than small to medium-sized business (SMB) lending. 2. Efficiency and Delinquency: Automated systems are linked to faster loan fulfillment and lower delinquency rates. For instance, delinquency rates for consumer loans fall from 2.1% with manual processes to 1.2% with automation. 3. Automation Challenges: Mid-sized banks and credit unions (CUs) face obstacles, including technical limitations, budget constraints, and cultural resistance. Many leaders worry that automation could harm customer relationships, especially in smaller institutions. 4. Investment Trends: FIs are committing to increasing their automation efforts, with 61% interested in fully automating processes within the next two years. The average mid-sized FI plans to invest $186 million in lending innovation over the next year. 5. Future Focus: Many FIs plan to expand their use of AI and digital lending platforms to enhance customer experience, risk management, and fraud reduction. Fully embracing these technologies will be essential to maintaining competitiveness. Document Source and all rights reserved with PYMNTS INTELLIGENCE (Shared for non commercial, informational purpose only). hashtag #digitization hashtag #digitalbanking hashtag #digitallending hashtag #automation hashtag #bfis hashtag #banks hashtag #ai …more

“The State of Digital Lending” report, prepared by MeridianLink, examines the transformative impact of #digitalization on the lending landscape. Key Findings 1. Digital Shift in Lending: • The rapid adoption of digital channels has reshaped customer expectations, with nearly three-quarters of lending institutions adopting digital loan origination and document processing. • Digital lending offers speed and accessibility for borrowers, while data-driven decision-making benefits lenders, reducing #operationalcosts and enhancing #customerexperiences. 2. Technological Innovation and Risk Management: • Technologies like #AI, #machinelearning, and automation streamline lending processes, allowing for real-time credit availability and better #riskassessment. • Despite these benefits, institutions must navigate complex regulatory requirements, prioritizing #dataprivacy, security, and compliance to protect sensitive customer information. 3. Competitive Landscape: • #fintechcompanies and non-bank lenders continue to disrupt traditional banking with innovative, user-friendly lending solutions. This competition challenges #traditionalbanks to modernize or risk losing market share. • To stay competitive, financial institutions are advised to embrace a customer-centric, omnichannel approach, blending digital convenience with personal interactions for high-value services. 4. Operational Excellence: • Achieving speed, simplicity, and advanced functionality is crucial for traditional institutions. Processes such as ‘save and resume’ for loan applications and mobile-friendly platforms are essential to meet the needs of modern borrowers. • Streamlining applications with data pre-fill capabilities and reducing manual interventions can enhance the customer experience and increase conversion rates. 5. Future of Digital Lending: • The report emphasizes a continuous digital transformation journey, advocating for flexibility, ongoing learning, and partnerships with third-party providers to remain agile and responsive. • Advanced analytics and #AI are identified as critical for personalization and #operationalefficiency, helping banks understand customer preferences, streamline decisions, and improve #customerengagement. Conclusion Digital lending is at the forefront of banking’s transformation, with significant opportunities and challenges. #Financialinstitutions that prioritize operational excellence, focus on customer-centric #innovations, and maintain compliance will be well-positioned to thrive in an increasingly competitive #digitallending landscape.

The State of Digital Lending Readiness Pymnts Intelligence The "State of Digital Lending Readiness" report explores the progress and challenges financial institutions (FIs) face in adopting digital lending solutions. Key insights: 1. Current State and Importance: Digital lending readiness is vital for FIs seeking to improve loan processing speed, accuracy, and customer satisfaction. However, only 36% of FIs have digitized more than half of their lending processes, with consumer lending seeing more automation than small to medium-sized business (SMB) lending. 2. Efficiency and Delinquency: Automated systems are linked to faster loan fulfillment and lower delinquency rates. For instance, delinquency rates for consumer loans fall from 2.1% with manual processes to 1.2% with automation. 3. Automation Challenges: Mid-sized banks and credit unions (CUs) face obstacles, including technical limitations, budget constraints, and cultural resistance. Many leaders worry that automation could harm customer relationships, especially in smaller institutions. 4. Investment Trends: FIs are committing to increasing their automation efforts, with 61% interested in fully automating processes within the next two years. The average mid-sized FI plans to invest $186 million in lending innovation over the next year. 5. Future Focus: Many FIs plan to expand their use of AI and digital lending platforms to enhance customer experience, risk management, and fraud reduction. Fully embracing these technologies will be essential to maintaining competitiveness. Document Source and all rights reserved with PYMNTS INTELLIGENCE (Shared for non commercial, informational purpose only). hashtag #digitization hashtag #digitalbanking hashtag #digitallending hashtag #automation hashtag #bfis hashtag #banks hashtag #ai …more

With the recent advancements in AI-enabled automation, it is important to know how to leverage this technology to streamline operations. In our most recent blog post, we explore how Secure Intelligent Process Automation can transform lending operations—automating complex processes, slashing inefficiencies, while safeguarding your data #lending #automation #banking #intelligentprocessautomation

How AI Can Significantly Change the Loan Onboarding Process In today's fast-paced digital world, financial institutions are under pressure to provide seamless and efficient services. The loan onboarding process is no exception, with customers demanding faster approvals and instant access to funds. This is where Artificial Intelligence (AI) is transforming the traditional methods, streamlining every step of the process through Straight Through Processing (STP) mechanisms. By leveraging AI for eKYC, automatic credit bureau checks, AI-powered credit scoring, and instant disbursement, financial institutions can significantly improve the speed, efficiency, and accuracy of loan onboarding. One of the critical steps in loan onboarding is verifying the identity of the applicant, which is where eKYC plays a crucial role. With AI-powered eKYC, financial institutions can verify customer identities instantly using biometric data and advanced document scanning technologies, eliminating manual interventions. For example, DBS Bank in Singapore implemented AI-based eKYC solutions, reducing their customer onboarding time from several days to just minutes, while ensuring compliance and security. AI also revolutionizes the credit assessment process. Through automatic integration with credit bureaus and the use of AI-powered credit scoring models, lenders can evaluate an applicant's creditworthiness in real time. These advanced models take into account alternative data sources beyond traditional credit scores, offering a more holistic view of the borrower's financial health. A great example is Zest AI, which uses machine learning models that analyze a wider variety of data points, allowing lenders like Freddie Mac to offer loans to underserved segments of the market with more accurate risk assessments. Finally, AI facilitates instant disbursement of approved loans, available to customers 24x7x365. By automating the entire process from application to fund transfer, loans can be disbursed instantly once approved, regardless of the time or day. This round-the-clock availability meets the growing demand for convenience in financial services and sets a new benchmark for customer satisfaction. For instance, bank can utilizes AI to power their instant loan disbursement feature, which processes personal loans and deposits funds into customer accounts within minutes, even outside banking hours. In essence, AI and STP mechanisms are revolutionizing loan onboarding, making it faster, more efficient, and customer-centric. #AIinBanking #LoanOnboarding #eKYC #CreditScoring #StraightThroughProcessing #FintechInnovation #AutomatedLending #AIpoweredBanking #CustomerExperience #DigitalTransformation #24x7Banking #FinancialInclusion

Another excellent piece from Alex Johnson. He says with the emergence of embedded lending, open banking, and generative AI, investment in a superior servicing experience is not optional—it is a strategic imperative for future success. The TRaiCE proactive portfolio loan monitoring tool for business lenders provides 24x7 monitoring of customers in the 'Pre-Delinquency' stage. It alerts relationship bankers to initiate risk-mitigating conversations and offer expert advice even before the customers realize they are heading into trouble. Thanks to #AI and #LLM, such interventions in servicing are now achievable. #communitybanking #digitalbanking #relationshipbanking