How new lending technologies can address shifting economic crosswinds
The financial services business model is perpetually at a crossroads and too often faces crosswinds. An uncertain economy like we see today often breeds hesitation; financial institutions may be tempted to slow down or pause technology investments not geared toward tightening balance sheets or finding greater efficiencies. However, those institutions that will come out of this period stronger than their peers are reading the tea leaves quite differently and planning accordingly. This is a universal strategy, true in any sector, but it is especially important to financial institutions today as the competition for profitable, credit-worthy customers is always shifting. Lending technologies, in particular, can help credit unions and banks continue to grow into this future model, despite any economic downturn. New technologies and partnerships are critical to explore, as many financial institutions have tightened their lending criteria. In fact, many lenders have decided to only lend to their existing […]
Today’s lending environment is the perfect time to prepare for the future. As financial institutions are competing over a smaller pool of borrowers, new fintech partnerships can help them maintain a proactive lending approach, with increased selectivity that acts as a safer, more controllable acquisition tool. Re-imagining, developing, testing, and optimizing lending technologies should be done now to avoid operating with outdated systems and processes. This will be especially critical as demand for different forms of credit rebounds and the march of post-pandemic consumer expectations of transparent, always on, always easy access to financial services continues.
