Bertrand Billon, the CEO of iLex, a fintech company that specializes in digitizing loans, recently sat down with DigFin VOX to discuss the process of digitizing loans and how it can benefit both lenders and borrowers.
Digitizing loans involves using technology to streamline the loan application process, reduce paperwork, and make it easier for borrowers to access credit. This process can be especially beneficial for small businesses and individuals who may have difficulty obtaining traditional loans from banks.
According to Billon, the first step in digitizing loans is to gather data on the borrower. This includes information such as credit history, income, and employment status. This data is then used to determine the borrower’s creditworthiness and to assess the risk of lending to them.
Once the borrower’s creditworthiness has been determined, the loan application process can begin. This typically involves filling out an online application form and submitting supporting documents such as bank statements and tax returns.
One of the key benefits of digitizing loans is that it can significantly reduce the amount of time it takes to process loan applications. Traditional loan applications can take weeks or even months to process, whereas digital loan applications can be processed in a matter of days.
Another benefit of digitizing loans is that it can make it easier for borrowers to access credit. Traditional lenders often require a lot of paperwork and documentation, which can be difficult for small businesses and individuals to provide. Digitizing loans can simplify this process and make it easier for borrowers to obtain the credit they need.
In addition to benefiting borrowers, digitizing loans can also benefit lenders. By using technology to streamline the loan application process, lenders can reduce their costs and improve their efficiency. This can help them to offer more competitive interest rates and attract more borrowers.
Overall, digitizing loans is a process that can benefit both lenders and borrowers. By using technology to streamline the loan application process, lenders can reduce their costs and improve their efficiency, while borrowers can access credit more easily and quickly than ever before. As the fintech industry continues to grow and evolve, it is likely that we will see more and more lenders adopting digital loan processes in the years to come.
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