Impact Of Digitisation On The Loan Business - Business Loan Blog - Tata Capital

The Impact of Digitisation On The Loans Business

Mar 06, 2017

Digitisation has changed the way we look at financial transactions. Whether it is paying a bill or applying for a loan, we go online and get the job done instantly. The scenario has changed dramatically over the last 10 years or so. More and more businesses have gone digital during this period. This has happened due to several reasons. The need for convenience is perhaps the most important one. This article focuses on the impact of digitisation on the loan business.

Digitisation of the loan business

Personal loans, business loans, home loans, car loans, and most other kinds of loans are now available online. So, you can apply for the loan and submit relevant documents from the comfort of your home. You can even check the status of the application online. No longer do you need to make tedious trips to the lender's office to get your job done.

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Impact of digitisation on the loan business

Digitisation has had a positive impact on the loan business. Some of the benefits of digitisation are:

  • Convenience: As mentioned, convenience is the biggest and most important component of digitisation. It has made the loan process simpler for borrowers. Meanwhile, lenders have also benefitted from it. Earlier, from the collection of documents to the filing of the results, everything had to be done manually. This led to a waste of time and energy, and to confusion and mismanagement. Digitisation has given a structure to the whole business.
  • Systematisation: Previously, it was not uncommon to have a lender tell you that your documents were misplaced. This would lead to a lot of confusion, for both the lender and the borrower. With digitisation, all important documents, receipts, and notices are stored online. This has helped the system become more organised and efficient.
  • Smaller workforce: Digitisation has made it possible for lending organisations to do business with a smaller workforce. Since the bulk of the work happens in the digital space, less documentation is necessary. The need to maintain physical files with all the paperwork has also diminished. This has made it simpler to keep track of everything. It has also given lenders the opportunity to work with smaller teams of executives. This has increased their productivity.

The bottom line

Digitisation has had a very positive impact on the loan business. It has made loans more easily accessible to the people who need them. It has also made it more convenient for loan providers to hand out loans to eligible customers. Today, there is no option but to go digital for all our needs. The loan business has made a satisfactory shift and fitted beautifully into this space.