Achieving Success with Digital Innovation

By Cloud Lending, a Q2 Company

Original blog can be found here!

Phil Swift, Senior Regional Sales Manager, UK

In my exchanges with lending organisations, I typically find they want to be more effective in meeting customer needs. They want to be part of their customers’ borrowing journeys and realise how important digital can be in meeting their objectives.

Like their customers, they are also on their own journey, entering the path to digital transformation. In this blog I briefly share my thoughts on where to start and move forward with digital transformation.

Three necessities for the best customer journeys

Three ‘must-haves’ should be the focus of a leasing or lending organisation as they begin their planning for digital transformation.

Automation. To compete and win today, your processes must be faster! Consumers and businesses in today’s digital-first world expect quick, simple digital experiences. No matter where you’re operating in the world, automated processes work to your advantage.

From application onboarding to underwriting, processes should be rapid while maintaining accuracy and completeness. Automation becomes an even more important requirement for those financial organisations with multiple lines of business or significant growth ambitions.

Flexibility. Greater flexibility through digital innovation allows your organisation to have many growth options. The technology underpinning your operations needs to be highly configurable and nimble, so that you can adapt to market dynamics quickly. Cloud Lending’s modular and configurable platform supports business imperatives, and our technology allows lending institutions to:

  • Launch the products you want at the exact time you want.
  • Gain the opportunity to offer different loan terms, such as interest-free or discounted rates for a fixed period.
  • Provide the ability to step-up or step-down payments, and more.

Flexibility allows your plans and goals to materialise, often as shifting markets introduce the need to adjust quickly.

Open API technology. Legacy approaches to growth are too complex and often result in manual workarounds. My Cloud Lending teammates and I will tell you this is not a means to compete in an extremely competitive lending world in which rapid action and results are expected as standard. Besides the exasperation that legacy technology typically produces, you also should expect erosion of your market share.

Open APIs allow better competitiveness and bring an opportunity to enhance the borrower experience for the better. Using an Open API infrastructure to connect to third party data providers enables scalability and can deliver identity authentication, credit data, electronic documentation, and other industry requirements like ‘Know Your Customer’ (KYC).

Cloud Lending has over 100 out-of-the box API connections and the number continually growing as we collaborate with our customers to enhance their customer engagement, loan onboarding, and servicing journeys.

Consider leveraging partnerships

In a rapidly changing business landscape, leveraging innovative technology partners can help tremendously in adapting and adjusting to new solution needs. A viable partner is one that can:

  • Deliver Amazon-like experiences across all facets of the leasing and lending process. Your prospects today will want user experiences to make their daily lives better for them. The word “delight” is often used to describe what people want when they are online or using their mobile device. Our parent company, Q2, conducts extensive user experience testing, and I can assure you, customers want to be delighted. They want quick, easy, and enjoyable when it comes to digital.
  • Provide the easy configurability to meet the individual needs of customers. ‘Easy’ should include allowing your staff accessibility and the ability to adjust as needed.
  • Provide the agility to go to market and make an immediate impact. Look for a partner who doesn’t dally in design complexities but can get a viable digital solution up and running and then puts the focus on iteratively improving the solution.
  • Adapt to the changing market needs and leverage opportunities as they emerge. Ask questions on how a prospective partner approaches their R&D, too—get an understanding of their commitment to improvement.

And lastly, if a prospective technology partner has delivered its digital solution multiple times, their automation journey becomes much easier. While the leasing and lending digital markets are considered still nascent by many, there already are experienced partners at work delivering tangible results. Read more about effective technology partnerships, in this blog by my colleague Auke Veenstra.

Think through your end-to-end requirements

Without a shadow of doubt organisations intent on thriving in competitive leasing and lending markets will require digital innovation. Achieving success will depend on identifying the end-to-end requirements you need to move forward—a modular approach to meeting initial and ongoing requirements may be the best approach. I hope the information I’ve provided helps your digital planning efforts. I’m more than happy to answer your questions or share further insights on taking the fullest advantages of digital leasing and lending. Reach me at +44 (0)20 3714 3951 or email me.