Traditional Banks and FIs Can Join the Digital Lending Disruptions

The Fintech space is usurping the traditional banking experience with improved financial service delivery leveraging on data and technology, especially for loan advancement. Digital Lending Solutions are spearheading greater financial inclusion in Sub-Saharan Africa. Over the past decade it has become clear that Digitization of credit in the face of the ever-increasing disruption by Fintech players in digital lending, is no longer an option but a race Traditional financial institutions must run to stay relevant in rapidly disruptive financial space.

Lending institutions are taking progressive steps to embrace digital lending, often starting with the digitization of the loan origination of its salary based loan products, either by using websites, USSD or mobile devices, partnering with a digital financial service provider or developing a proprietary digital solution stack. Although this triggers benefits for both existing customers (convenience, security, faster transactions and creation of a digital footprint) and prospective customers who are looking to embrace a reliable FI with a strong digital presence, value-added products, rural outreach at a lower cost. Digital lending comes with certain challenges and risks, and can sometimes represent a threat if not deployed appropriately.

As technology disruptions and new players change the face of banks, regulators will to fully employ the resources and tools to manage this changing environment by deploying adequate supervision and oversight tools that may put banks with poor digital lending infrastructure in jeopardy. Digital lending is contingent on increasing the financial services value chain, with banks and non-banks (Including FinTech companies) through a web of partnerships.

FinTrak digital lending solution is adaptable and agile. The mobile and web app is built on a unified configurable platform with the FinTrak Credit 360 Solution that helps whether a bank, mortgage institution or any other financial institution. Using the FinTrak digital lending platform, financial institutions can offer their existing and prospective customers a complete digital loan processing experience. Leveraging on strategic integrations for pre-qualification, application processing, underwriting to disbursement, across a wide range of loan products. It is flexible and responsive to the extent that banks and any financial institution can independently run all of the processes in a paperless and electronically driven workflow environment, leveraging on USSD technology, mobile and web apps.