In the past, the only option when borrowing money from banks and lending institutions was to visit them in person, fill out some forms, submit documents, and then wait for days to weeks for them to approve the loan. This was a long and tedious process. Nowadays, we have alternative ways of borrowing money—one of which is digital lending platforms.
With the fast-paced growth of technology, the finance industry is seeing some changes, particularly in the lending market. This growth will lead to the global market size of digital lending institutions reaching $12.1 billion by 2023.
What Is a Digital Loan?
In a nutshell, digital loans are alternative loans that you don’t get from traditional banks and lending companies. If you need cash fast, digital lending platforms like GetCash.com can help.
Digital lending platforms use automation in most loan approval and disbursement processes, allowing them to evaluate customers faster, enhance back-office functions, and release funds promptly. Today’s digital times have allowed businesses to provide faster and more seamless services to their customers, including lending.
Benefits of Digital Lending Platforms
With the help of digital platforms, the lending world has changed drastically. For one, what used to take days to several weeks now takes minutes to days. Let’s dive into what other benefits digital lending platforms have brought to the lending market.
Convenience
This is perhaps the first selling point of digital lending platforms over traditional lenders. We used to physically go to a bank or lending institution to get a loan. We needed to wait in line, fill out some forms, and submit documentation in person. Now, with digital lending platforms, everything is done online—no more driving to the bank, which is quite beneficial in times like these.
Fast approval
Banks and traditional lending institutions typically take longer than their online counterparts to approve and fund a loan. According to Forbes, the typical loan approval time of online lenders reach up to three days, but banks and credit unions may take up to seven business days. Additionally, loan disbursement takes up to five business days in online lenders, but it can also be as soon as the same day. On the other hand, you may have to wait up to seven days with banks and credit unions.
Instant rate quotes
Numerous digital lending companies offer preapproval options where you enter your basic information and check if you prequalify for any loan. You will get an idea of the terms and rates without filling out an application. Also, don’t worry since this won’t impact your credit score because the companies will only perform a soft credit check, allowing you to shop around for loan offers without hurting your credit score.
There are also digital lending platforms that work with numerous vetted lenders and offer you a loan based on the information you give them. It’s important to note that these platforms don’t usually oblige you to accept a loan offer. You only accept when it’s favorable for you.
User-friendly platforms
Since digital lending companies operate solely online, they ensure their user design is easy to navigate. Aside from being user-friendly, these platforms are safe and secure. You’ll sleep well knowing that your data isn’t misused or breached.
Flexibility
Digital loans offer flexibility in the amount you can borrow, so you can request smaller amounts. For example, GetCash offers payday loans from $100 to $5,000, which is perfect when you have something urgent and need a little extra cash.
How Digital Lending Platforms Are Changing the Finance Industry
Technology has positively impacted how we do business in the finance industry, and digital lending platforms have made a sizeable contribution in this space.
These online platforms have allowed companies to close more loans faster with automation. This technology also frees staff from performing manual and mundane tasks to focus on more essential parts of the business, like customer acquisition.
As a result of automation and closing more loans in less time, companies can gain more profits.
Digital lending platforms can also communicate with their customers using various channels, which helps them deliver excellent customer service and deepens relationships with their customers. Lastly, although there is the issue of a security breach because everything is done online, digital lending platforms are highly secure. These companies have the security of their customers in mind, so they use highly advanced encryption methods to ensure your data is safe.
Conclusion
Digital lending companies have the potential to transform the lending industry. By making lending more accessible and convenient, digital lenders could make it easier for people to get the financial assistance they need. Additionally, digital lenders use innovative technologies to assess risk and make lending more affordable and sustainable for consumers. In conclusion, digital lending companies represent a potentially disruptive force in the financial sector.
Author’s bio:
John is a financial analyst but also a man of different interests. He enjoys writing about money and giving financial tips, but he can also dive into relationships, sports, gaming, and other topics. Lives in New York with his wife and a cat.
