Why cloud based technology is important for the lending industry

Cloud computing has proved a convincing trends in today’s business world. The common concern of banks/ lending industry are storage, security, 24/7 uptime and all these concerns can be addressed by cloud computing technology.

Here are a few reasons why and how cloud-based technology are becoming a necessary part for the lending industry.

• Time management and Cost-effective
• Secured connections
• Disaster recovery
• Flexibility, mobility, Reliability
• Simplified online process
• Improved collaboration
• Automatic process 

Time management and Cost-effective:

 Time management: With the help of digital loan management channels modeled on cloud computing technology, the manual processes like written work and verification process can be automated, which will save time for lenders or bank and also the borrowers can simply request for a loan online and get loan approval faster and quicker.

Cost-effective:

Cloud computing ends in cost savings in your global IT spending when you take into account not just building of a system but also maintenance and upgrades, all of which are more efficient in a cloud-based system and its reduce dependency. Based on your subscription plan, you just have to pay as you operate it.

Secured connections:

Cloud computing makes sure that the transactions are secured and provides a better user experience in banks and the financial industry. Hosting over the internet with the help of web apps ensures better speed and service to users. The best example of cloud computing are payment gateways, online fund transfer and secure online payment. The payment transaction is quite very easy through cloud computing technology. And, also Cloud computing provides more security than keeping your files saved in your servers in one location.

Generally, data centres may go through many attacks from the hackers which corrupt and led to the loss of very crucial information in the bank. Such attacks can be eradicated by authenticating the data centres which made very easy through cloud computing. Each and every data stored is safe with hybrid cloud-based technology. With the help of cloud services technology, authorised users can able to access the application and data from anywhere and anytime if internet access is available.

Disaster recovery:

Let assume, if your own processes are completely out of your control that leads to downtime in your service. As result, you will lose productivity, brand reputation and revenue.

Actually in today’s market, even a small amount of unproductive downtime that leads to a negative impact on your services.

To avoid this situation cloud-based services are used, which provide quick data recovery for all types of emergencies such as disaster, power outages, etc.

Flexibility, mobility, Reliability:

Flexibility: Using cloud technology, it is easier to pivot from one application to another making it a flexible choice. Cloud computing improve the efficiency in the industry. Usage of cloud technology is an added advantage in the banking and finance sectors and the services will allow the financial institution to provide the best and appropriate service to the customer. Over 65% of the organisation including several financial institutions have recognised that the scalability is the top reason to adopt cloud services.

Mobility:  Cloud computing allows mobile access to corporate data via devices and smartphone.

Reliability: The cloud infrastructure technology is highly reliable. It will possible for the financial institution and banks to secure their data along with the speed and flexibility by opting hybrid or private cloud model.

Simplified online process:

 A digital-based loan origination/ loan management platform will be an advantage for both lenders and borrowers. Right from Form filling, uploading necessary documents for ID verification, desired loan type all these processes will be taken within cloud-based loan management/ loan origination platform.

So obviously it will be convenient for both borrowers and lenders in terms of cost, time, resources as everything are managed through the secured and simplify online process.

Improved collaboration:

Collaboration in a cloud environment will help your business to share the data with the third parties easily. Such capabilities help in improving product development and customer experience and also reduces managing time.

Collaboration may be possible without cloud computing technology, but it will never be much easy, nor effective. 

Automatic process:

The major advantage of the cloud-based loan management system is automation.

With this, the key processes such as loan origination and loan repayment will become more efficient and can easily access the steps like funding or servicing process to ensure relevant regulation are followed, eliminate the cost of handling paper documents.

Conclusion:

 Cloud-based platform is transforming the lending industry and benefits both the lenders and borrowers.  If your loan management software is not cloud-based, it means you are not experiencing/enjoying the advantages of technology.