Is New Tech Making Lending Money Easier?

Lending money to customers for everyday living and big purchases was once a complex process.

It could sometimes take days for borrowers to learn whether their lending application has been approved.

Sometimes, that delay could have severe financial repercussions for the borrower who might have needed the funds for an emergency.

However, just as technology has enhanced many industries like healthcare and hospitality, it has done the same for the financial sector.

New tech is making lending money easier in some of these ways:

Online Loan Applications

Borrowing money from reputable lenders like My Canada Payday used to be frustrating.

Borrowers had to visit lending offices in person, armed with all the paperwork they needed for approval.

If they didn’t have a printer, they’d have to find someone who did, approach a printing business, or see if their loan provider could help print their documents.

Traditional paper-based lending systems are mostly a thing of the past, thanks to online loan application portals.

Borrowers can apply for loans from the comfort of their own homes on smartphones, tablets, and computers by uploading all necessary documentation for the lender to review.

Electronic Fund Transfer

Even after being approved for loans in the past, lenders and borrowers had the frustrating issue of a slow payment process.

Borrowers often had to wait several days for the money to appear in their bank accounts. 

However, most reputable lenders now use electronic fund transfers or e-deposits.

They can choose from many options, such as card-based EFTs, mobile wallet payments, direct deposits, and wire transfers.

Money can change hands quickly, which can be a weight off the minds of people trying to access payday loans.

Enhanced Credit Scoring Systems

Lenders use credit scoring systems to ensure the people they’re lending money to will likely pay it back. The cleaner their financial history is, the less of a risk they can often be.

Credit scoring systems in the past rarely painted a complete picture of a person’s financial trustworthiness.

However, that has all changed with today’s enhanced credit scoring systems which feature many data points.

Lenders can now make informed decisions based on personal, business, and behavioral data.

They can also look at occupations and education levels to obtain a complete picture before making their lending decision.

Omnichannel Capabilities

While the digital age has paved the way for more self-service options in any business, that doesn’t mean customers don’t want to speak to real people.

Lenders have automated the lending process but have also invested in platforms to provide a more customer-centric approach to lending.

Whenever borrowers have a question or concern they can’t resolve themselves, they can reach out to lenders through their website’s live chat or chatbot function, via text message, on apps, by phone, and even on social media.

There are so many more options for customers to interact with a business than ever before.

Despite lending and borrowing once being a complicated and time-consuming task, technology has undoubtedly changed that in recent years.

Lenders can now offer a more streamlined and straightforward way for borrowers to access the money they need fast.