Introduction
In the past, all mortgages have been done in person but with improving technology digital lending is becoming more popular. Generation Z wants everything to be fast, easy, and accessible, with fintech and digital lending is it more possible to get mortgages done faster than ever. It Is also faster and easier to refinance your dream home with a few clicks of a button.
What is digital lending?
Digital lending is the process of getting a loan, going through approval, and recovery all taking place from the comfort of your own home, café, or even your car, the Digital lending process normally takes place through an app or website.
In 2022 the market size of digital lending is 7.04 billion US Dollars it is forecasted to be 44.5 billion in 2030. The market is expected to grow by over 25% in the 8 years. The pandemic has changed the way that banking is done and has helped the development of fintech dramatically. Before the pandemic the was no rush to get the digital lending technology out fast. However, with the need to adjust, technology production and research sped up during the pandemic.
Lending is the process of gathering all of the information and documents and coming up with a rate. Digital lending helps calculate this rate in a faster period, saves time and money for the bank, and improves performance, all of which create a great customer experience. Running credit online has become more and more useful than ever, it takes less time and is more convenient to have all the information in one place and multiple places can use the credit
How has Lending changed?
With the recent climate in the world involving COVID-19, everything had come to a halt and people did not want to leave their homes. Now with digital lending, they don’t have to. Digital lending is changing the world with how fast people can get their loans, in only a few clicks. People also find it extremely convenient when they can access the application from anywhere, at any time.
Mortgages can be difficult and confusing for a lot of people; they need everything from your work and bank information to the 1098 form. The mortgage process can take months, from the application to the appraisal and closing disclosures to the end where the loan is funded. The appraisal is often something that slows down the process, the appraisal is when the bank sends someone to look at the house so the bank can make sure the collateral is up to their standards for the loan. The rest of the process can be done almost entirely remotely.
Why go with a digital lender?
A Digital lender is the way to go, it allows you to free up valuable time and create more opportunities to spend time with the family instead of spending time in the bank filling out an application. Digital lenders are also more consistent than non-digital lenders, they guarantee the best rate available for your situation. When filling out an application for a digital lender they offer digital or electronic signatures, this guarantees that none of the paperwork will get lost. The final decision also comes quicker when a digital lender is used so it provides a quicker closing.
Conclusion
Digital lending is the future because it is fast, available, consistent, and most importantly easy. Digital lending is extremely fast, it keeps all the information in one spot and doesn’t need multiple trips to the bank because the information can be easily uploaded online. Consistency is important because you know exactly what you can try to improve on for future homes, and you know that you are going to get the best rate because digital lenders are extremely transparent with you. Digital lending is easy because you do not have a timetable, you can work as fast or as slow as you would like. The interfaces are easy to use and get started which is a big bonus, especially for younger buyers. Who knows where we might be if COVID-19 did not happen, because this horrible thing happened the fintech sector was able to jump forward in massive leaps which helped speed up the development of digital lending.
https://www.grandviewresearch.com/industry-analysis/digital-lending-platform-market