4 ways all-digital loans mutually-benefit

Banks are contemplating the future of their branches and wondering how far digital demand will go.

11:22 09 May 2013

The banking industry is faced with the unique challenge of trying to meet customer needs while also maintaining branches which may become unnecessary in the future.

 

Some banks are apparently considering putting in a machine that would display a video screen and allow consumers to have a direct link to a video chat with one of the bank representatives in a call centre.

 

Imagine what the future of loans might become with technology. Many people are already able to obtain their vehicle loans right over the internet in a matter of day or two, perhaps even within just a few hours. It seems much more likely that the future of loans will continue along this path, rather than the branch bank path.

 

What could be expected with digital loans?

 

• Better interest rates—if banks no longer needed physical branches, their costs would be drastically lowered, allowing them to pass the savings onto the consumer.

 

• Improved customer service—imagine never having to waste time waiting in queue for the next available person to assist you. The internet makes everything easily accessible without waiting, and help centres or chat representatives can be available extended hours without inconveniencing workers since there would simply be multiple shifts available.

 

• Faster responses—as much as we may not like to admit, a computer is able to process numbers quickly, so approvals or denials for loans may be calculated much faster when applying for loans in a digital atmosphere.

 

• Disclosure—one of the best benefits of having loans available online would be the consumer’s ability to choose the terms that fit their needs. If monthly payments, term lengths, and other options were clearly displayed, consumers would feel secure with their choices.

 

Digital loans may never totally eclipse the traditional method of meeting with the banker, but it’s a possibility with some interesting benefits that banks may seriously consider.