As members of the lending community, we at LoanPro regularly attend industry events. This past week, we attended the Lendit Fintech industry conference, something we’ve done many times in the past. This year, more than ever, one thing was clear: lending is the future of tech revenue.
Well known companies, some that have been around for decades, are understanding that they can add value to their customers by providing financial products through an engaging, customer-focused experience.
The “Buy Now, Pay Later” concept, which has been around since the beginning of lending, has seen a recent renewal, with an added focus on consumer experience. At LoanPro, we are seeing a strong interest in both point-of-sale financing and SMB lending, with an emphasis on using data and tech to improve a previously poor user experience, by seamlessly embedding financial technology.
As companies choose to monetize their user base by adding a lending product they are asking these questions:
- “Can I sell more products if I offer financing?”
- “Should I outsource lending, or take it in-house?”
- “Will I service my own loans, or let a third party take care of that?”
- “Who can I talk to understand my lending options?”
We are also seeing a higher-than-usual adoption of financial technology by traditional, established lenders. “Even well-capitalized, well-managed community banks will not survive if they fail to adopt technology that fintech companies and large banks already offer,” the chairwoman of the FDIC warned, during one of the Lendit virtual sessions that included panel discussions of lending-industry notables (among them the LoanPro CEO, Rhett Roberts).
FDIC Chairwoman Jelena McWilliams went on to say that “relying on legacy systems and relying on technology that they have been implementing for such a long time — when their customer is three generations ahead in terms of the use of technology — is going to result in those banks losing customers.”
Traditionally, lending has been based on old, hard-to-adopt technologies. This, coupled with regulatory compliance concerns, has pushed companies to shy away from lending. Now, companies like LoanPro make adding lending to an existing business or adding technology to established lending easier than ever before.
At our core, we provide technology that includes software and scalable cloud services to accommodate lending. But we have also created default workflows for lending processes. These workflows are the result of our years in the industry and the knowledge of what lenders of all sizes want. They will help handle things like SCRA, bankruptcy, fraud, payment plans, and more.
If you have asked, “Who can I talk to understand my lending options?” know that we’ve helped lenders large and small to adopt technology, bring loan servicing in house, and increase lending revenue, and we would love to offer our assistance.
Please reach out to LoanPro’s team if you have any questions or would like to see how adding embedded financial products to your tool kit may enhance your business and delight your customers.
Andy Morrise, COO
LoanPro.io
