Quilo: Transformational Lending Technology

In years past, when people sought out loans for larger purchases, they usually made the in-person trip to a local lender or used a credit card.

But as technology continues to transform today's banking industry into one that is far more digital, lenders are seeking out new products and services that will keep them competitive and able to attract new customers. To accomplish this, many lenders are now looking at ways to move towards frictionless digital lending. 

As prices of almost everything have risen, the concept of buy now and pay later is a necessity for many borrowers and it’s their preferred way to pay at point of sale. Customers would also like a way to pay down credit cards and/or replenish their checking account and term the transaction out over time.  

Lenders can now make that available to their customers with a transformational lending technology called Quilo.

What is Digital Lending?

For more and more financial transactions, people opt for doing business digitally rather than in person. As for exactly what digital lending is, it often begins with a lender offering a phone app, giving their customers the ability to seek out and obtain instant funding through an installment loan.

Customers can have the convenience of completing the loan application on the financial institution’s website, gaining instant approval, and then going out to the App Store or Google Play  to download the app and start using Quilo at point of sale, pay down or pay off credit card debt, or replenish their checking account. The entire process can be completed in just minutes.

Since lenders such as banks and credit unions can provide much faster service through digital lending, this allows them to greatly increase their productivity, spend far less time dealing with loans that don't get approved, and ultimately increase profits within their consumer loan division.

Lending Technology Trends

In 2022, there are a variety of fascinating trends impacting digital lending. Leading the way is the increasing use of artificial intelligence, commonly known as AI. Primarily, AI is being used to let lenders better assess a borrower's solvency. Even when all information is given on a loan application and lenders check the applicant's income and credit score, risk is still in play. By relying on AI, a lender can assess the loan applicant's entire digital footprint, analyzing social media activity, wallet usage data, and education level.

Another trend is that digital lending is being viewed by many lenders as a tool that helps them improve customer service. This is critical, due to the increasing competition within the lending industry. Since potential borrowers will register on a lender's digital platform and create a profile, lenders can have instant access to information that lets them develop customized lending options for various types of small businesses. In the end, this speeds up loan approvals, fund transfers, and gets customer questions answered in a timely manner.

Finally, cloud computing is becoming increasingly important within digital lending, especially where the detection of fraud is concerned. By relying on cloud computing, a lender can accumulate and store more user data without adding additional computers to their network. This allows loan specialists to better analyze information, reducing the risk of confusion that can lead to the approval of fraudulent loans.

How Lending Platforms are Transforming Digital Lending

Perhaps most of all, lending platforms are transforming digital lending by making the loan process far more stress-free for both applicants and lenders. When using technology such as Quilo, it won't need to be integrated with the current banking core. As a result, lending staff will be able to control the digital portfolio by having 24/7 access to all pertinent information.

Lending platforms such as Quilo are also transforming digital lending by minimizing the credit risks of lenders. Lenders can easily set minimum credit scores for loans, set daily lending limits, and rely on Quilo to monitor risks and adjust certain settings as needed.

As to why this is important, consider the fact that the American Bankers Association estimated the digital lending platform market to be worth almost $5 billion in 2022, with an expected growth rate of 24% annually throughout the decade. When modern technology such as AI and cloud computing are incorporated into digital lending platforms, the accuracy rate when determining whether or not to grant loans improves to 98%.

Digital Expectations of Millennials and Generation Z

Whether they are purchasing items or seeking out loan options, Millennials and Generation Z customers expect to conduct most if not all of their business online or through their phone apps. If lenders are to stay competitive and attract new customers, relying on a digital lending platform such as Quilo is a must.

Rather than wanting to use their credit cards and the high interest rates that come with them to finance various purchases, younger customers prefer installment payment loans that are paid for over time.

Turn-Key Solution With Quilo

Since digital lending technology changes at a rapid pace, lenders prefer to use platforms that feature apps that are turn-key solutions. When using Quilo, mobile app features include tech support 24/7, compliance support, financial reporting, and the ability to do all aspects of loan origination and servicing on the digital platform, helping to eliminate hidden fees for loan applicants. Also, only a soft pull on their credit report is used, meaning their credit score won't be impacted.

Collaboration and New Business Models

When lending platforms bring state-of-the-art technology to lenders who want the advantages of offering digital lending, this collaboration leads to the development of new and innovative business models for lenders. As lending applications improve, lenders are then able to develop and offer new products and services to these customers. 

Digital Lending is the New Standard

Based on current trends within banking, most experts agree digital lending is poised to become the new normal in terms of lending money to consumers.  Expected to drive new growth opportunities for lenders who don't procrastinate about embracing this technology, digital lending platforms such as Quilo are indeed poised to revolutionize lending as we know it.

With more people than ever making online purchases and wanting to use lower-interest installment loans as payment options, banks and credit unions that utilize Quilo will be able to offer added convenience to borrowing, keeping them ahead of the competition.

If you believe that our lending programs might work for your institution, please get in touch with us at (847) 867-3311 or through our online contact form.