Loans have been around since humans first began using currency. But the financial industry as a whole has seen some groundbreaking developments in recent years.
Just a few decades ago, the idea of getting an instant loan from a retailer while you’re online shopping was unheard of—but of course, online shopping was unheard of at this time as well. Today, various innovations and new technologies continue to change the industry, so much so that you can expect it to look very different just a few short years from now.
Keep reading to learn about some of the top innovations in corporate lending and loans and what they mean for your business.
1. Artificial Intelligence
Few industries have missed the rise in the use of artificial intelligence, and corporate lending is no exception. In the financial industry, AI is used in customer-facing and back-end applications.
Chatbots and market trackers are being used to channel new customers and to better serve existing ones by answering everyday questions, directing inquiries, and tracking customer behaviors. On the back end, AI is being used by lending companies for advanced knowledge representation tools to better predict a customer’s risk and for advanced fraud detection through natural language processing.
2. Embedded Lending
Another top innovation that’s making waves in corporate lending and loans is embedded lending. With embedded lending, lending comes from non-financial services or products. Rather than requiring a third party (such as a bank or other financial institution) to get a corporate loan, companies can offer loans directly to their consumers.
Through embedded lending, companies retain greater control over their brand and over the customer experience. Additionally, customers get more options for paying for goods and services from companies. Implementing embedded lending is easier than you might think. All you need is a company specializing in embedded lending technology to help you set your lending process and terms. After setting up embedded lending, you’ll be able to offer your customers the option to get an instant loan when checking out on your website.
3. Cloud Lending
Similar to embedded lending, cloud lending technology is designed to help financial institutions improve the lending solutions that they offer to customers. In the case of cloud lending, a digital platform is used to expedite the lending process. Customers are diverted to this digital platform, which is equipped with automation and configuration designed to streamline the financing process.
For customers, this means a faster, smoother process when seeking a loan. For businesses, this means a faster verification process and more closed financing deals.
Tracking the Latest Innovations in Corporate Lending and Loans
From embedded lending to the use of artificial intelligence, these are a few of the big innovations that are underway in the corporate lending and loan industry. If your business isn’t already, now is a great time to consider investing in these innovations to keep your business relevant.
Staying up-to-date on the latest innovations and new technologies making waves in lending and loans is important. It can help your business deliver the options and solutions your customers want and allow you to remain competitive in your market.