Technology is making financial services, particularly lending, one of the most enthralling segments to keep an eye on. While several technological transformations going on, here below are two which are already in flourishing mode and ready to completely change the way financial sector services are offered online.
What are chatbots? These are digital assistants, which, through AI and ML, are proficient in solving customer problems and following their instructions to a chat like format. Many financial institutions today are demanding and very much investing in developing their own company personal chatbots to take the customer experience to a new level. From resolving product queries to recommending investment options to discussing customised offers, a chatbot offers a much more personalised experience today.
Since chatbots analyse your individual and transactional data and make recommendations on that base, results offered by them are modified and dependable, free from any kind of human error. One such example can be seen as, logging in to their bank page, and a chatbot greets you, reminding you about the unused reward points on your visa card and recommends on how to make use of it based on your previous activity. These chatbots are said to become a sensation amongst the millennials and is expected to transform one by one each sector of services provided on different platforms.
Being available all the time round the clock, these are supposedly very easy to use and simply accessible. Also, since hundreds of thousands of conversations by the chatbot are analysed daily, they get more intelligent every day, bettering the quality of conversations and being able to answer more and more complex questions.
Big Data Analytics
Much like the way internet and smartphones have transformed our lives, big data holds the potential to completely transform financial services.
Lending is largely about risk. Banks and other lending institutions access the applicant ability to repay the loan. Till now, this was evaluated largely by accessing an applicant s credit report, which enumerates his creditworthiness based on the way he has repaid earlier loans. Unfortunately, this also leads to most loan applications getting rejected because of either a low or ineligible credit score or no credit history. Big data is slowly changing all that.
Today, many new-age lenders have started using unorthodox data points to access an individual creditworthiness. Now, consumers who would have otherwise been rejected by most lenders, can get access to credit through alternative lending.
Alternative lending analyses consumer data points, from how you use your mobile to details of your digital transactions, size of your utility bills to even your social media profile. Big data models created by new-age lenders enable them to create more detailed and holistic profile of consumers and allow them to make much more accurate underwriting decisions.
Consumers can get these loans at the best prices through online lending aggregators or marketplaces that have the technology to match the right customer with the right lender.