We usually talk about how technology has changed the way we business and paved new ways to faster and inexpensive processes. However, still, a major chunk of businesses still relies on manual processes and reluctant to adopt automation. This scenario is still evident in the financial sector where technology is going places.
One such area is ‘credit decision’ where manual processes and dependence on third-parties can still be witnessed. Regardless of the resources that are deployed, the decision-making process suffers from human errors, bias, and lack of pace.
That said, the pressure to automate credit decisions on businesses is increasing, both from the perspective of operational efficiency and customer satisfaction. This way, businesses in the lending sector can save a lot of their cash and valuable time.
Why do you need automated credit decisions?
In addition to the obvious cost reduction and improved customer satisfaction, there are numerous other advantages of automating the credit decision-making process:
Automating the process of making credit decisions ensure transparency throughout the hierarchy and leaves no signs of bias. Also, every information could be available to the concerned people at all the time. This could give businesses an edge over the competition and customers a sense of satisfaction.
Removal of manual processes and allowing software and algorithms to manage decisions results in faster turnaround times. The time taken to complete processes can also be reduced to seconds or minutes. Moreover, you can always keep a check to ensure everything is going fine.
Making credit decisions in the lending market involve a thorough study and in-depth analysis which is prone to errors and carelessness. But with automated platforms, you just need to provide the standards initially, and algorithms take cares that no spoiled potato passes through the chain.
Coming to the next important benefits of automated credit decisions, it enables lending businesses to deploy a fully functional decision process which can ‘accept’ or ‘decline’ as per the encoded conditions.
With automation, you could easily manage lenders and borrowers in the pipeline making other processes fast and easier. Calculating risks, ROI, underwriting decisions, reporting, and analysis could become simpler too.
Barriers to Automation
If automated credit decisions are so crucial, why not every business is adopting it. These are the barriers that might be restricting them:
- Businesses generally stay dubious about the capital and investment required to implement advanced software systems in the system.
- Decision accuracy remains another concern as they fear that automating the process might produce wrong or inaccurate results.
- Technology is ever-evolving. The fear of getting obsolete could be a concern for many.
Technology is rising at a rapid pace. Businesses getting obsolete has become easy and frequent. They need to adopt technology to stay relevant in the market. This need of automated credit decisions has raised a requirement of a platform that is technically advanced to support such functionality with accuracy and 0% chances of failure.
That is where Akeo Lending – a modular lending platform comes into picture allowing businesses to build their services on top of it. The platform allows rule-based decisions and other features to the users including:
- Automated KYC/AML
- Automated credit check
- Bank integration
- Rule-based calculations
To know more, visit our website www.akeolending.com.
Businesses nowadays need to evolve themselves with the technology to stay relevant in this competitive market. With all the benefits of automated credit decisions, they can focus more on growing themselves. Platforms like Akeo Lending allow them to adopt automation without needing to build everything from scratch.