Digital lending, simply defined, is sourcing, assessing and servicing loans through digital means and data points.
Kenya has seen an increase in digital footprints created by a demand of better end-end customer experiences. Small businesses and individuals have been able to access lines of credit via their mobile phones without the need to step inside of financial institutions and be subjected to cumbersome loan application processes.
The lending market in Kenya has changed significantly with venture capitalist backed private firms like Branch and Tala, entering the digital lending market to compete with seasoned financial players like KCB, Equity and Co-operative Banks, in a bid to offer unsecured short term mobile loans.
Digitization of financial services aims at removing bad and avoidable interactions—those caused by complex processes or employee errors.
So what are the prerequisites to succeeding in the digital lending space?
The secret is to create systems that take into account the following factors;
- better decisions that are informed by customer, risk and marketing data and not internal operations
- consistent cross-channel execution;
- technology that enables a smart 360-degree view of the customer to be able to develop custom made products
- efficient, digitalized processes that are friendly to use
- migration of customers to anywhere, anytime self-service
- rapid innovation and business reinvention to be at par with constant IT dynamics and customer trends
Organizations that will factor in these key points are likely to succeed in the digital lending space.
Call or visit www.mfs.co.ke for more information.