From Traditional to Tech-Savvy: Redefining Loan Advisors in the Digital Lending Industry
Whether we talk about today or a scenario of a few decades back, loan advisors have always played a pivotal role in facilitating the loan application and approval process, connecting potential borrowers with suitable and right lenders.
Let Us Time Travel to 2030
Talking about the near future, how would be a portrayal of a loan advisor in the digital lending space? What would be the evolution like? As today, loan advisory professionals continue to play a crucial role in the credit industry. And in coming years, leveraging advancements in technology and expertise, will enable loan advisors to offer superior and personalized customer experience. Let’s explore on how evolved or how similar would a loan advisory professional of year 2030 could be like:
- Will love to say Hi to 'AI' - Today, a DSA might be wary in employing newer technologies but in the coming years, contrary would happen. A future loan advisory professional would be proficient in utilizing advanced technologies such as artificial intelligence (AI), machine learning, and automation. They would leverage these tools to streamline loan application processes, assess borrower creditworthiness, and analyze vast amounts of data to make informed lending decisions. This would in turn help them achieve a higher approval rate, in comparison to the traditional paper-based file login process.
- Will know what's the best for Borrowers - A future DSA professional would know the best questions to ask their customers. They would further understand that one glove doesn't fit all and every borrower is unique. They would prioritize providing personalized and tailored loan solutions to borrowers, using advanced customer relationship management (CRM) systems and data analytics. This would help them understand customer preferences, anticipate their needs, and offer customized loan products and repayment options. There will be more emphasis on understanding financial DNA of each customer.
- Will transcend the boundaries with virtual reality - A loan advisor of 2030 will learn that using only a smartphone is a dumb way of carrying business. In coming years, he/she would utilize various communication channels, including advanced chatbots, video conferencing, and virtual reality (VR) interfaces, to interact with lenders and borrowers alike. These technologies would enable real-time communication, facilitate virtual loan application processes, and provide a seamless customer experience.
- Will be Mr. Fintech on-the-go! Contrary to a general belief how no one likes a know-it-all, a loan advisor of 2030 will change the narrative of the story when it comes to being aware of lender policies and guidelines on the go! The future loan advisory professional would stay updated on the latest fintech trends and innovations. They would have a deeper knowledge of blockchain, digital currencies, peer-to-peer lending platforms, and other emerging fintech solutions that could impact the loan industry.
- Will be guardians of trust - As the loan industry becomes more technologically driven, a future loan DSA professional would prioritize transparency, ensure data security, and uphold ethical standards while handling sensitive borrower information. Integrity will form a stronger point of differentiation of their business than ever.
Overall, a DSA professional of 2030 would combine advanced technological skills, comprehensive financial knowledge, strong communication abilities, and a customer-centric approach to provide personalized loan solutions while upholding ethical conduct and compliance.
If we rewind for a while, back in the 2000s, the traditional DSA operated with physical files - right from getting the client onboard to application to various lenders, to disbursement of loans - all stages took place physically, paperwork being the constant. There’s no lack of consensus that back then and today, paperwork has always been a cumbersome aspect. Lengthy TATs have always been a constant pain-point for borrowers and even for the DSAs. The Indian Lending industry was in a dire need of a ‘change’.
A revolution, if we may say. In the last decade - that is exactly what took place - digitization took the business world by a storm.
As a Loan professional, how far along have you come in this journey of evolution? Our two cents is, by 2030, we would not be surprised, but instead would be pleasantly welcoming the already foreseeable positive transformation & advancements in Indian Digital Lending space, where all the stakeholders - Financial Advisors, or Borrowers or Lenders - will be striking success & winning together, in more profound ways.