How technology progress has helped the loan industry
When your Wi-Fi router fails, it’s easy to wonder whether technology really is your friend. But the technological progress of the past few years is undeniable and has transformed the way many services are delivered.
So how can technology help a segment of the loan industry that has traditionally traded on face to face engagement rather than tech-based self-service?
Amongst the wide range of personal loans available, one type that is popular with many people is a doorstep loan.This is aface to facepersonal loan service where the money customers borrow is delivered to their door.
The loan is brought to the customer in cash, so there is no waiting for cheques to clear or wondering when an online money transfer will reach an account.
This means that doorstep loans are convenient, easy to apply for, and the decision process is usually quick. Specialised doorstep lenders offer smaller loans to customers who prefer to borrow small amounts.
Their customers can borrow just what they need and don’t need to commit to a larger ‘minimum’ loan amount, which some larger loan companies insist on.
Doorstep lenders have until recently relied on background technology for back office credit scoring and loan administration, but have remained distinctive by providing personal delivery of small loans and face to face collection.
Covid 19, and the associated lockdown, meant that this personal dimension came under threat, and that problem called for some smart technology to help customers apply for and receive their loans.
One doorstep lender, Morses Club, has responded on behalf of their customers by developing a customer portal loan app, enabling customers to apply for and manage their personal loans via their mobile phones.
This technology uses a progressive web app to replicate the performance and speed of a web site, in an app which is quickly downloaded onto a mobile phone.
The application is independent of a web store and offers a fast and secure way to receive and transmit the various packages of data associated with a loan application.
The speed and security of a progressive web app makes it ideal for customers to apply for a personal loan on their phone.
And because the technology links to a supporting website, the lender can provide all of the appropriate details about the loan agreement, repayments and consent. This reassures customers because the application process follows all the appropriate steps required for legal and compliance purposes.
Whilst speed and convenience are important elements, the build of this customer portal loan app pays close attention to the strict legal and regulatory requirements expected of responsible lenders.
The Morses Club app processes customers’ loan requests by linking seamlessly and securely to third party agencies, including identity verification, credit data providers and the Faster Payments network, providing confidence that their loan details are confidential and secure.
The app build pays full regard to the strict compliance requirements, so customers have full understanding of their loan agreement and can provide their consent to the terms of the loan, before their money is paid out.
Morses Club customers can choose to have their app-based loan paid into their bank account, or loaded onto the Morses Club Card. The PIN-protected card, supported by VISA, enables customers to spend their loan online or in-store with VISA retailers, as well as withdraw their cash, fee-free, at ATMs across the UK.
The Morses Club app also enables customers to track their loan balance and card spending at a glance.