Last Updated on Dec 19, 2019 by James W
Digital lending is the use of online technology to grant loans, resulting in quicker and more efficient decisions. It has grown in popularity recently, and indications are that trend will continue. Digital borrowers are becoming better informed, and they’re looking for more than the right loan closing costs and interest rates. Those who wish for credit can apply instant credit online with ePayLater, and they will be on the lookout for these features. You should be too if you go this route.
The Decision Speed
One significant difference between a digital credit solution and a more traditional loan is that the time between a loan application and a decision can be weeks. The decision of whether digital credit will be bestowed can come within a few hours, or even less. That is because there is a specific profile that most lenders work out beforehand, and they should be able to tell whether you fit that profile very rapidly.
A Focus on Automation
Part of the point of digital financing is that you can take a lot of the human interaction out of it. A loan process once involved going to a bank and filling out seemingly endless paperwork. If you can now use an app on your phone, a tablet, desktop, or laptop, the process can be streamlined in a way that could only be dreamed of a couple of decades ago. Of course, you’ll still need to do the research necessary to make sure that you know what you are getting into if you decide that the pursuit of digital credit is in your best interest.
Good Customer Service
Although digital lending solutions are all about automation, the lenders who are the most successful are still the ones that offer the best customer service. These are the ones that have online chat buttons on their websites for if a potential customer has a question. Their loan applications are easy to understand, and the entire process is comprehensive from start to finish. UX, or user experience, matters to customers. If you hear that a particular lender has a good reputation, but then you can’t navigate their website, it is highly likely you’ll take your business elsewhere.
No Service Charges
Another potential roadblock to a digital financing solution can be the little fees that tend to pile up quickly. As happens with any online transaction, if you see that the numbers of the loan are not finalized until there are “convenience fees” and “service charges,” that might very well make you change your mind. In that respect, satisfaction with automated loans is the same as any other online purchase. No consumer wants to feel like they’re being gouged.
Financing is just the latest of many aspects of modern life that have gone digital. People are always going to need credit solutions, and if you fall into that category, you’ll probably be glad about how easy things have grown in this area. It is your prerogative whether you decide to pursue a more traditional loan, but you should at least keep yourself open to the possibility of a digital answer to your financing needs.