How to digitise the loan application process

The pandemic has brought forward a new digital era in lending for brokers, who have quickly adapted to seeing customers via video call and managing staff remotely. Despite this, most lenders in the current market still require tons of paperwork to be filled out during the loan application process. Many brokers have been left scratching their heads as to why more banks haven’t digitised the process, especially since there are a range of e-signature and ID verification solutions already on the market.

The benefits of agreement automation.

According to OneSpan spokesperson Sarah Dixon, agreement automation can reduce abandonment rates, improve efficiencies and even reduce risk for lenders.

“Digitising the agreement process allows financial institutions to capture tamper-evident electronic evidence throughout the process in the form of digital audit trails.”

“Digital audit trails can include evidence of compliance, evidence of the customer’s identity, or evidence of their intent to be bound by the agreement. If stored in a tamper-evident package, the evidence can help prove that the resulting agreements are legal, compliant, and enforceable if challenged.”

The risk of application fraud.

In a whitepaper on agreement automation, OneSpan offers a guide to the best practices of digital transformation for financial agreement processes.

This highlights the risk that human error can pose for financial institutions that rely on manual form filling as part of the onboarding experience.

It also highlights the risk of application fraud – one that many overseas financial institutions are now mitigating with digital ID verification.

But choosing a sound provider is not as simple as it seems. There are a range of different ID verification methods in the market and using just one may not provide the level of security needed.

According to OneSpan, integrating multiple identity verification methods can help to reduce fail rates; preventing against a poor customer experience and loss of sales.

In its latest whitepaper, Beyond Business Continuity: The New Normal in Remote Banking and Insurance, OneSpan explores the top financial processes to digitise with e-signatures and digital ID verification technology while unpacking the key security considerations for digital-first financial services providers.