Transformation in the digital lending sector is continuing at pace and being driven by ever smarter technologies, from cloud to AI and predictive analytics.
Companies have seen the benefits that can flow from digitalisation, including higher speed of operations and better-quality risk decisions – which translate into an optimal customer experience and profitability down the road.
Until very recently, digital lending transformations in the asset finance sector were set back by multiple factors, including legacy IT systems, a general lack of trust in automated decision-making, limited data access and siloed departments. However, many lenders have seen the light and understand that digitalisation with an end-to-end credit journey focus is luring customers.
A major report on the digital lending revolution by McKinsey & Company said that the key factors a customer considers when choosing a lender nowadays is shorter approval and disbursement times.
How is Metro harnessing tech for customer benefit?
Metro is already well and truly on its way to upgrading its technological systems. Under the stewardship of Chief Information Officer David Bridges, Metro is developing a new end-to-end digital journey, primarily for its brokers (introducers) – rather than taking a piecemeal approach.
David says: “Metro is at the forefront of tech innovation in novated leasing. Our investment in technologies, including cloud, AI, and data analytics, is not only enhancing our operational efficiency but driving improvements in transformation of the introducer experience.”
There are three main areas where improved technology and digitisation will improve the lending process:
Loan application
(quicker time to ‘yes’)
Settlements
(faster processing)
Customer service
(converging systems)
At Metro, it will be more important than ever to use data to customise and individualise service offerings and evaluate channels and assets to optimise services and experience.
Metro plans to implement this across its systems in the following ways:
AI technology
Using AI technology to facilitate a quicker journey to approval of finance.
Cloud technology
Using cloud technology to enhance fraud detection prevention.
AI, cloud & data analytics
Using AI, cloud and data analytics to give introducers more choice and tailoring.
Data analytics
Using data analytics for enhanced ways to process manual details – such as invoices and statements – faster.
Experience proves that the efforts to upgrade digital platforms in the asset finance sector are more than fully repaid in competitiveness and profitability. Success means much faster credit decisions, with customers having access to finance up to 80 per cent sooner; lower costs, with 30-50 per cent less time spent on decision making.
In an age of flexibility and mobility in fintech, as well as a cost-of-living squeeze, it is more important than ever to ensure the borrower journey is streamlined and efficient for the end use.
“We aim to enhance and simplify the borrower experience at each stage of the lending process. In the back end we’re bringing in more predictive analytics on approvals and credit scoring. We are developing a credit rules engine to improve approvals and automate those decisions,” David says.
The McKinsey Report also identifies partnerships as a way of enabling lenders to develop new capabilities and present new customer offerings more quickly. Partnerships can help support full platform capability and data feeds for end-to-end journeys in new markets and offer experience in new lending approaches.
“There is potential for Metro to open up to a partnership in the future with third parties,” David adds.
