Digitisation in Lending Market
05.03.2020 by Dimi V
The lending market is transforming in large and unprecedented ways as of late. One of the biggest agents of change in the market is digitisation.
Digital technology is changing the ways that lenders offer better deals to their customers and using data to ensure that customers are getting loans better catered to them. Furthermore, digitisation is making the credit market much more flexible and much more convenient, allowing for green lending and greater loan security.
Here, we’re going to take a closer look at what exactly digitisation means in the context of the lending market, and how it can allow for greater affordability and control when it comes to your loan against your car.
What is digitisation in the lending market?
Digitisation is, to put it simply, the use of digital resources to allow customers to borrow through digital platforms, and the management of loans on digital platforms to both improve the customer experience and the ability of lenders to manage more reliable loans. The processes that used to be done in-person, or on pen and paper, are increasingly being handled by a range of digital software tools and apps.
In a world where customers prefer more and more to do their business online, and where businesses can use customer data to better cater to their needs, the outdated models of lending simply do not work any longer. Not only can they be frustrating, but they can also make loans take a lot longer to both apply for and approve. That simply doesn’t meet the needs of the average customer.
As such, many in the credit market, including Loan On Your Car have already taken steps to digitise both the customer experience from end-to-end and the internal processes that drive that customer experience. Below, we will take a look at some examples of how we are digitising and what it means for our customers.
How Loan On Your Car digitises our green loans
Instead of relying on the pen, paper, and face-to-face meetings like traditional lenders, Loan On Your Car uses technology to streamline much of the lending process, which in turn allows for quicker and more conventional loans. Here are a few specific examples of how we do just that.
Digitising the application process
When it comes to applying for loans, the simple process of having to visit a lender’s physical location, get the paperwork you need, and fill it out can be an inconvenient process. Digitisation in this case simply means making it easier to fill those application forms online, be it through websites or applications, so you can gain access to, complete, and submit your application as, where, and when it suits you.
Loan On Your Car makes the application process easier by using electronic signatures during it, as well. This increases the speed at which you can complete and we can process your application. But it also allows for enhanced security. Paper is much easier to tamper with than digital applications. Furthermore, the cost savings of being able to rely on digital applications instead of paper ones means we can pass the savings on to you, as well.
In short, digitizing the application process allows for greater convenience, easier access, saves you plenty of time, and can even result in lower rates. As such, people tend to much prefer applying for loans in digital platforms than the traditional way.
Digitising your car evaluation
When you take a loan out on your car, the lender is going to have to perform a car evaluation. This means taking a look over the vehicle to get a better idea of its condition and, as a result, its value. Accuracy during this evaluation is important since it allows us to offer you the best loan terms available to you. However, it can also be a barrier for some people.
The need to arrange an appointment that you will be free to drive your car to a physical location, and to wait for the loan provider’s team to inspect the car can make those loans less accessible. You might have trouble finding time free to drive to the spot, and you have the costs of driving there and back on your plate as well.
Loan On Your Car digitises this process by using apps for completely car evaluations. By using WhatsApp to make communication with borrowers much easier, and using FaceTime to be able to get a closer look at your car without having to be in the same physical location, it can completely eliminate the barrier that you might otherwise face when trying to arrange an evaluation.
This means that we can more quickly and easily figure out the value of your car. This, in turn, allows us to more quickly process how much you would be able to borrow by releasing its existing equity. As such, it can speed up the application process tremendously.
Digitising our affordability checks
Affordability checks are a crucial part of our application process. They are effectively designed to ensure that you can afford the repayments of any loans you apply for with us. Once we have completed a car evaluation, we perform an affordability check to see how much you can reasonably afford to pay back. This provides greater security, as it allows us to make sure that even if you can free up a lot of equity in your car, you’re never taking on a loan that may turn out to be too much to handle.
This important part of the lending process is made much easier by our use of MogoPlus for affordability checks. MogoPlus is a Data Analytics and Research provider that takes the data we use in the application to provide a more precise look at how much you are able to afford. Not only does this digital solution allow us to more quickly get an idea of loan affordability, but it relies on pure data, meaning it also tends to be a lot more accurate. Furthermore, Mogoplus is highly secure and ensures consumers’ privacy, making it more reliable than storing that data on paper.
Furthermore, because we provide Vehicle Equity Release and use affordability checks, we can gather enough data that we don’t have to perform any credit checks. Hard credit checks are often a point of concern for borrowers. If a lender performs a hard credit check and it comes back with a negative result, this can further impact your credit rating, making it harder for you to borrow in future.
Our Vehicle Equity Release loans, with the help of affordability checks, do not impact your credit at all, since we don’t need to check it to know your viability for our loans.
The advantages of Loan On Your Car’s digitisation
In the credit market, being able to respond to customer needs quickly and with loans catered to their specific needs is crucial to the success of both lender and borrower. As a non-bank lender, Loan On Your Car is committed to making green loans much easier to apply for and much more quickly processed. Instead of looking for fast logbook loans, we can help customers get responsive and specifically catered Vehicle Equity Release in the UK, which is a fairer, securer, and quicker alternative.
Thanks to our digitisation, our customers are able to see what loans are available to them and get approval all the sooner. This means they don’t have to wait weeks for a response for the bank and can free up the cash they need in no time.
The digitisation efforts we’re taking, as mentioned above, has made it a lot easier for us to operate as a green lending provider. By green lending, we mean that we’re able to use the tools we’ve explained to provide loans without any agency visits and without any credit checks.
Because of our ability to provide quick, convenient car evaluations and to perform affordability checks with ease, you don’t need to surrender your spare key or your logbook when you take out a loan on your car. Instead, Vehicle Equity Release allows you to free up a portion of your car’s existing value, which is a fairer, securer, and quicker alternative to a logbook loan.
Digitisation in the lending market is the future
At Loan On Your Car, our first efforts in digitisation have already allowed us to make it much more convenient to apply for secure and fair loans, and have drastically cut down the waiting time usually associated with a loan application. However, this is just the beginning. Digitisation is a revolution that is going to sweep over the lending market in the coming years, and customers should keep a lookout for those who are using this time of change to offer better, faster, and more secure services when you need to take a loan against your car. Not only can you find fast logbook loans, but you can find safer alternatives that don’t require you to give up that logbook in the first place.