Besides the security and transparency of loans, the importance of comfort is becoming increasingly important. Therefore, financial institutions try to simplify the whole process of arranging loans for clients and thus improve the customer experience with loans. New technologies such as online contract signing or special mobile applications should help them significantly.
Although in recent years the fight in the area of lending has been fought mainly in the field of transparency, which has virtually eliminated hidden fees from the largest lenders, further competition will shift to the comfort area. “People who consider a loan but ultimately fail to complete the process make up a high percentage of applicants. Often, their interest in borrowing fails in a lengthy and complicated process involving paperwork and mailing, ” says Kyle Manuer, Bankil Sales and Marketing Director.
The trend is also confirmed by the results of a survey among 525 respondents, which showed that lack of comfort bothers most loans to a quarter of Czechs. At the same time, these people describe the difficulty of the loan application documentation as the biggest obstacle. New technologies offer solutions to precisely such problems. “Thanks to the so-called online signature, the applicant uploads all the necessary documents online into the system and after studying the contract he signs it from the comfort of his / her home via SMS code. No papers, no envelopes, no mailing, ” says Kyle Manuer from Bankil.
The second most commonly reported difficulty in applying for a loan is the length of the process. Naturally, this will also shorten new technologies. From the usual 2-3 days Bankil is now able to send money to clients within 24 hours of signing the contract. All this while maintaining all the required security, which ensures the certificate of Czech Post.
News from the near future
However, signing contracts online is not the only innovation that will make life easier for borrowers. Money-management applications for financial management are also increasingly popular. E.g. more than one fifth of Czechs use them at least occasionally among Czechs under the age of 35. And in addition to transaction functions or revenue and expense comparisons, it will be common to use tools such as a credit approval simulator or debt management within a few years.
January in Revolution
The beginning of next year should be a turning point in this respect. As of January 2018, the European PSD2 Directive on the regulation of payment services should come into force. This will allow banks to provide access to data from Internet banking for third-party applications. As a result, this should further speed up lending of money and gradually lead to real-time loan approval. Opening the data will also greatly simplify the process of delivering the documentation necessary for credit approval and streamline the whole area of credit risk assessment. “All this will not only increase comfort but also lead to more responsible lending,” concludes Manuer.