What Have Alternative Lenders Taught Banks?

Alternative lenders have shown banks some new tricks in capturing customers and enhancing client experiences. RMA's most recent installment of the Credit Risk Management Audio Conference Series featured George F. Buchanan, EVP, Commercial & Wealth Credit, Regions Financial Corporation, and Margaret W. Burgess, EVP, Business Banking Credit Risk, Citizens Bank; they each discussed how their banks have taken these lessons and applied them to their operations and customer offerings.

The alternative lending market continues to grow because of the speed, ease, and convenience that it offers. Buchanan highlighted the differences between the customer experiences of alternative lending versus that of traditional lending, which can often be a labor intensive process. Alternative lending offers a seamless, digital experience that's transparent to customers through every step of the application process. This allows clients to provide feedback along the way, see the progress being made, and understand what's coming next in the credit decisioning process.

Burgess pointed out that alternative lenders have been very effective in collecting and using customer data. Whereas banks collect data at the beginning of the application process, alternative lenders collect data and have the ability to leverage it throughout the process. Because of its online platform, alternative lenders can acquire more data and use it more advantageously, ultimately streamlining costs.

Both speakers advised banks partnering with a digitally-enabled lender to ensure that doing so complements their bank's overall credit strategy and risk appetite and complies with their bank's policies.

Join us on Tuesday, May 9, 2017 for the next offering in the Credit Risk Management Audio Conference Series: Construction Lending Update.

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