In response to the threat of the emergence of peer-to-peer platforms, banks are now starting to use technology to hasten the lending process to small business and retail customers, financial industry analysts say in an American Banker article. Peer-to-peer lending platforms have emerged recently, offering personal, student and even business loans that are faster and more accessible than traditional banks. To compete with these fintech companies, bankers need to use technology to improve their loan origination system. They can address these deficiencies either by getting upgrades from their core service providers or partnering with fintech companies.
This year, financial industry experts expect banks to build more partnerships with fintech companies to provide their customers with the best digital lending experience.
Enhance Security in Lending
Experts also urge banks, online lenders and fintechs to develop secure platforms to safeguard customer data. For observers, the use of blockchain, behavioural biometrics, and multifactor authentication will play a huge role in securing customer and business information.
Apart from speed and security, lenders should also give customers multiple access to contact them whenever they need assistance during the entire loan process.
The integration of technology in lending is just one of 10 ways technology will transform banking this year, according to an American Banker article. The authors of the report also expect AI to change the nature of the work of bankers in response to the use of modern technology including robots. In addition, technology will also enhance customers’ control of their data and facilitate payments.
Technology May Replace Banks’ Workforce
The adoption of AI will also transform how banks operate, mainly by replacing almost half of their employees, according to Antony Jenkins, a former Barclays CEO. He forecasts that computers replace customer services, middle and back office staff, which comprise 50% of bank personnel. He added that employees would need to be more entrepreneurial to survive in the workplace.
Tara O’Sullivan, chief marketing officer at Skillsoft, advised employers to “reskill and upskill” their employees to qualify for alternative careers in case companies fully implement AI in their companies.