Lending is the lifeblood of your credit union. It should be seamless and efficient from application to disbursement, all the way through loan modification and payoff. It’s no secret that consumers have moved to a more mobile way of life. Banking has seen its fair share of migration to mobile in recent years. But online lending and peer-to-peer (P2P) is a trend that has been gaining serious momentum in the world of mobile banking.
"Mobile is becoming critical to remain competitive,” says Edgar Cerecerez in his article Top Lending Trends to Watch 2015. He also states that, “In the past few years, we’ve seen a huge push for mobile-friendly websites, and easy-to-use mobile applications. This is partly due to the growth and switch from desktops and laptops to the use of mobile devices. A recent Pew Research report says that well over half of Americans own a smart phone capable of downloading apps and browsing the Internet. Having a mobile site or an app can lower the amount of call volume and strengthen the relationship lenders have with borrowers.”
What is an interesting trend, and an intensifying new business model for many lenders, is the move toward online and peer-to-peer (P2P) lending. Cerecerez explains that, “These models leverage the web and explosive growth in mobile devices to originate loans in a way that brick and mortar business can’t do.” What may be even more important in mobile lending is that, “They are also able to leverage proprietary origination scoring algorithms that promise a better loan portfolio. In addition, they can leverage their online presence to offer lending products nationwide – ensuring we’ll see continued growth in this segment,” he said.
Whether your member is across the desk or across the country, the technology you use should make it easy to lend a hand. Learn more about the FLEX 360° Lending Program with the following download:
