Digital Lending by ApPello: What are the key factors of successful digital transformation?

  • By Tech Week
  • May. 06, 2019

In the last couple of years, the digitalization in the FinTech area has become more than just a popular buzzword. ApPello collaborates with financial institutions as one of the key tech providers of the CEE region and supports them in the digital transformation to shorten the time-to-decision and increase the level of automation. As one of the distinguishing features, ApPello’ Digital Platform enables a high level of customization according to the specific needs such as business flows, integrations and data model. This shortens the project implementation time and improves the user experience.

It is obvious for everyone that the traditional consumer borrowing process leaves a lot to be desired in terms of user experience. Digital technology is transforming the consumer loan industry by providing borrowers with greater simplicity, efficiency and transparency. Organizations that can use digital technology to process applications, make decisions and do the loan disbursement quickly on devices of their choice, will win going forward.

In terms of digitalization, the financial industry is behind the commerce market so banks need to accommodate otherwise they might lose some of their customers. In case of Lending services, the digitalization is a challenging but necessary way for the banks, as a huge percentage of their clients are millennials armed with high expectations and lack of patience regarding banking processes. The new digital era has begun, so the question now is, how to be ahead of the pack.

Banks around the world are already realizing how investments in digital technologies could benefit customer acquisition and satisfaction, but with the rise of Fintechs, banks are facing a bigger race in lending as well. The advantages of digitalization are only procured by the sacrifice of some traditional ways – the new innovations need to work with the cumbersome systems that have already been implemented decades ago in banks, so the skill of seamless integration is also a crucial point of success.

As an example, in the UK the alternative Business Lenders or Lending Fintechs have been steadily taking away the share of SME loans from banks we can say that more than half of the SME loans funded by Fintechs. Low cost to capital, higher risk appetite, better service in terms of processing time and documentation involved along with the fact that the SMEs are increasingly tech-savvy, millennials also give the Fintechs significant leverage to use technology to bring disruption to the way loans are issued and serviced. To keep up in this fast-changing market, traditional banks will have to adapt new operating models similarly to the Fintechs. In particular, changes in IT, new products and services development, and changing expectations for time-to-market will be key factors going forward.

At ApPello we are passionate about delivering end-to-end lending software solutions for financial service providers and help them to achieve the best result in the digital transformation. As we try to serve our clients – banks and financial institutions – in the best possible way, we realized that we should shorten the time-to-decision by using our new pre-integrated front-to-end lending solution. With the help of this new innovation, financial institutions can provide an excellent, personalized borrower experience and will be able to reduce the time of the disbursement in case of corporate and SME clients as well.

As we learned from our latest projects, the most important goal of banks is the digital transformation of end-to-end credit journeys, including the customer experience and also the support of credit processes. For banking clients, the crucial points when applying for loans are: the time, the amount of administration and the necessity of personal presence in the branch or bank office. If any of the previously mentioned factors exceeds a certain level of inconvenience, there is a big chance for customer churn. Today the borrowers’ habits have changed a lot and for example most of the SMEs don’t find the need to talk to a loan officer for getting a loan and in the retail sector, to get a loan immediately is a basic expectation.

ApPello Lending Portal provides a new level of flexibility in lending with its user-friendly, self-service application. The innovative platform, with its responsive modern design and state-of-the-art user interface, gives customers a comprehensive banking experience, pre-integrating various different lending solutions (e.g. loan origination, real estate valuation). Additionally, the platform allows the full parameterization in its applications and radically shortens the “time to decision”. In this endeavor, automated workflows and customizations help modeling the processing in accordance with the regulations of the bank.

Today, the battle for good customers is bigger than ever. Whether launching a new lending product, or trying to rapidly adapt existing processes to new market segments or regulations – organizations are challenged by long IT queues, and inflexible software. ApPello digitalizes all important client interactions with ease and helps responding immediately and ensures effective operation with a fully customizable end-to-end lending solution (ApPello Loan Factory) that puts emphasis on client digital journeys over the legacy system-oriented approach. In addition, with ApPello Lending Portal it is possible to boost new customer acquisition and increase customer engagement.

Bringing advanced analytics, application processing and decision flexibility to businesses, banks can make more precise, profitable decisions when launching a new loan product.

The strict rules of the banking industry limit the ways of transformation but we believe that it also initiates new innovations for Fintechs.

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