How Technology has impacted the Finance and Borrowing Sectors

A lot of advancements have been experienced in the loans and finance sectors after the introduction of the new technology in the industry. This was a few years back after the stakeholders of the finance and investment industry observed that the customers of the industry were suffering from the poor services that they received from the financial institutions. The banks and other financial lenders took advantage of the customers since they knew that they were the only solution to their financial challenges in the financial market. This led to the emergence of other financial institutions that were determined to overturn the tables for the rogue banks and lenders who had started exploiting their customers. 

These institutions were guided by the principle of customer satisfaction. They understood that the customers were the primary reason that they were in business and if they didn’t exist, they would also not be in business. This motivated them to try their best to ensure that they provided their customers with the best services that they could afford. One of the initiatives that these financial institutions took was to digitize the credit and the banking sectors. For a very long time, these sectors had been characterized with manual operations which delayed the turnaround time when it came to the service delivery. 

For instance, whenever a customer needed to borrow money from the financial lenders, they would be forced to travel long distances looking for the premises of the lenders. This would frustrate many of the customers, who in return opted to stay without the financial assistance. Those who managed to get to the lenders’ offices were never lucky, they encountered long queues of customers waiting to be served, and some of them would despair at this stage. After the long queuing, the customers would be served with the loan application forms, which they would be required to fill and leave them in the head offices. These would remain there for weeks or even months before the loan offices in the offices approved them. The process was very tedious, and apparently, the loan could never be expected to serve as a solution to the emergency needs of the customers. 

The concerned stakeholders of the industry took up the matter and decided that they could provide real solutions to some of these problems. One of the solutions that they provided was to introduce checking accounts for the clients. As we speak, there are free checking account cypress tx and most parts of the United States.

The clients of these financial institutions are very glad to have these accounts since they can monitor their consumption of savings from their accounts. The other remedy that the banks provided was the development of a digital platform that would facilitate the communication between the lenders and the borrowers. This would bring to an end all the long distances covered by the customers as they moved to the lenders’ offices to seek financial assistance. Also, the period between the application of loans and that of the disbursement by the lenders to the customers’ accounts was reduced significantly.

 

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