1 Executive Summary

2 What is Driving Digitization in Lending?

• 2.1 Growing Need for Enhanced Customer Experience
• 2.2 The Quest for Operational Efficiency
• 2.3 Impact of Changing Competitive Landscape
  • 2.3.1 Strategic initiatives by non-banks to gain traction
  • 2.3.2 Banks’ answers to the impending challenge

3 Digital Transformation of Lending in Retail Banks

• 3.1 Front-End Digitization
  • 3.1.1 Digitized loan application process
  • 3.1.2 Loan servicing
• 3.2 Back-End Digitization
  • 3.2.1 Application processing and verification
  • 3.2.2 Automated underwriting and credit scoring
  • 3.2.3 Loan closure and disbursal

4 Challenges in Digitization of Lending

5 Case Studies

• 5.1 Enhanced Efficiency with Paperless Loan Processing by US Bank
• 5.2 First Internet Bank – the Digital Platform of Lending
• 5.3 Bank Dhofar – Automation of Loan Origination Improved Efficiency
• 5.4 Zopa – a Pioneer in Peer to Peer Lending
• 5.5 HDFC Bank – Banking on Digitized Personal Loan Product

6 The Way Forward for Digitized Lending

7 Appendix

• 7.1 Methodology
• 7.2 Definitions
• 7.3 References
• 7.4 Contact GlobalData
• 7.5 About GlobalData
• 7.6 GlobalData’s Services

GlobalData’s 'Insight Report: Digitization in Lending' analyzes the effect of digitization, emerging trends and competitive landscape of the lending industry. The report also discusses in detail the drivers of digitization for financial institutions and how they are using it for improving operational efficiency and customer experience.
With significant adoption of digital channels by customers, financial institutions are compelled to provide the convenience of anywhere, anytime banking to customers. Although digitization has transformed the transactional banking process, it has not been fully adopted in lending process.
Many online lending companies and non-bank lenders have emerged to capitalize on the inefficient lending process of banks. The growth of these companies also demonstrates that customers are looking for more convenience, which digitization can provide. The significant rise of non-bank lenders has led banks to invest more in digital technology, and form partnerships with them to remain leading operators in the lending market.

Scope

An examination of the trends that will shape the global lending industry in the next five years
A comparative analysis of the various business models in the global lending industry
An analysis of the key trends and drivers in digitization, and their combined impact on the lending process
Details of key initiatives adopted by financial institutions in digitizing the lending process
Case studies of financial institutions which have implemented pioneering technology to improve the lending process
An exploration of the challenges in implementing digitization in the lending process
An overview of how financial institutions can utilize digital channels to enhance productivity, efficiency and the customer experience
Key Highlights
What are the key advantages of digitized loan applications?
Which factors make the current lending process slow and expensive?
What are the prime requirements in customer service that need to be addressed as digital banking grows worldwide?
In which area is the digitization of lending likely to provide the most cost-effective solution?
What are the main drivers behind the launch of online lending platforms?
What are the key challenges that have deterred financial institutions from digitizing the lending process?

Reasons to buy

Identify threats from new market entrants to protect and maintain market share.
Investigate emerging global opportunities due to digitization, and target those which enable a gain in competitive advantage.
Gain insights into key initiatives adopted by financial institutions to digitize the lending process, and align operations accordingly to increase market share.
Evaluate how organizations will be affected by the changing industry dynamics, and ensure that operations are best placed to protect market share
Analyze key technology and ensure continuing cost-effective participation in the lending market.

Companies mentioned

HDFC Bank
Google
mBank
Westpac
Wells Fargo
US Bank
First Internet Bank
Association for Information and Image Management
Bank of Queensland
Thomson Reuters
Consumer Financial Protection Bureau
Astoria Bank
Wolters Kluwer Financial Services
Capgemini
American Bankers Association
Lloyds Bank
Bank of America
BAI Banking Strategies
PwC
Zopa
Lending Club
Funding Circle
Faircent
Quicken Loan
PayPal
Amazon
Square
Goldman Sachs
Kueski.com
Fidor Bank
Atom Bank
WeBank
MyBank
Touch Bank
Radius Bank
Bank Leumi
Metro Bank
Royal Bank of Scotland
Santander Bank
BBVA Compass
Tesco Bank
United Overseas Bank
State Bank of India
Barclays Bank
Bank of Industry
Axis Bank
Capital One
eBroker.com.au
Sterling Bank
Citibank
Commercial Bank
Bank Dhofar