THE LOAN LIFECYCLE IN THE NEW NORMAL

R&C: In the ‘new normal’ emerging in the wake of the coronavirus (COVID-19) pandemic, could you outline the impact on the loan lifecycle, and what it means for lenders?

Cartia: Undoubtedly, the pandemic has precipitated several sudden changes in everyone’s life, accelerating the use of digital channels and changing lifestyle habits in how we shop, work and live. As all companies that offer services across the globe noted, there is a strong need to meet customers where they are today. This post-pandemic ‘new normal’ world offers lenders an opportunity to evolve their loan lifecycle process, on the one hand to meet new customers’ needs, rethinking their origination strategies with hyper-personalised customer experience, fast-lending and process automation for onboarding and evaluation requests, and on the other, reviewing, in compliance with regulatory guidelines, their customer management processes to reduce risk, improving bad collection and recovery processes. In addition, we see emerging factors, such as climate risk concerns, ‘K’ shaped recovery and the emergence of digital-ready FinTechs with new services and products, such as ‘Buy Now Pay Later’ (BNPL), all as elements that need to be addressed with appropriate methodological approaches and best-in-class technologies.

Apr-Jun 2022 Issue

SAS Institute Inc.