Banking is becoming more competitive and expectations are shifting – both for customers and employees, so top banks are choosing to invest in fintech. Consumers will likely notice big benefits soon, even though they can’t see behind-the-scenes upgrades.
Trends in the Wider Market
CB Insights reported that 2018 was a record-breaking year for bank-backed fintech deals. Capital market and crypto investments peaked during the 2015 blockchain boom, but the widespread focus on fintech is still going strong in wealth management, SBM finance, and alternative lending.
Fintech Example: Innovating Commercial Loans
Let’s look at Helpwithmyloan as an example:
HWML recently surveyed 225 professionals across the lending spectrum that play a role in helping clients receive business loans and commercial real estate loans. 73% responded that it currently takes more than 21 days to underwrite deals, citing that the four biggest pain points for customers are:
- Errors in cash flow
- Manual paperwork
- Delayed decision-making
- Limited options for clients after being declined
These client-facing problems can be solved by back-end fintech, even though the loan recipient will never engage with the software directly.
Here’s how Helpwithmyloan adds value and has successfully funded over $100M for our customers:
Errors in cash flow- Each applicant has a summarized profile that automatically highlights the most important metrics at a glance, so there are no questions about cash flow.
Manual paperwork- Helpwithmyloan is fully digital and the system automatically pre-populates key information for both your team members and borrowers from uploaded documents.
Delayed decision-making- Brokers and lenders have centralized dashboards that clearly summarize and display production for all team members, so you can speed up and synergize communication. Through Helpwithmyloan, you can match and approve loans in as little as 24 hours.
Limited options for clients after being declined- Helpwithmyloan has achieved a 95% loan funding rate with a database of 300+ vetted partners, including both traditional banks and private lenders.
In an effort to improve front-end performance, industry leaders are investing in back-end fintech. The round-about benefits for customers might surprise you.
Click here to schedule a demo and see how Helpwithmyloan automates the underwriting process.