How traditional finance providers can capitalize on the embedded lending revolution

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A large portion of credit has moved to the point of sale forcing traditional and alternative lenders to embrace innovation and adapt to maintain and grow their borrower base.

Nonetheless, most financial institutions still can’t meaningfully automate their manual loan origination, loan management, and debt collection processes.   

For established lenders, reimagining the operations of your lending business is a major undertaking, especially considering these factors:

  • implementation of the new credit policy  
  • transformation and migration of legacy data 
  • the need to train staff and educate existing clients 

Luckily, these challenges aren’t unique. Consumer and commercial lenders in 50+ countries use TurnKey Lender to digitize all elements of credit and service ~100 million borrowers.  

But first, would you like to learn how we use AI to automate credit processes for b2b and b2c lenders in 50+ countries?

We’ve asked the company’s CEO and co-founder, Dmytro Voronenko, PhD what established large-scale finance providers need to understand and do to improve the ROI of their lending and banking technology investment. 

How urgent is it for your lending business? 

Over the last several decades, the talk of urgent digital transformation of financial products and services has been ongoing. And the flood of digitalization during the pandemic set new standards for how borrowers want to interact with lenders. 

So how can large-scale consumer and commercial lenders capitalize on the lessons of the embedded lending revolution? 

Dmytro comments: “The embedded finance phenomenon showed traditional and alternative lenders that their place in the marketplace isn’t theirs by default. BNPL trailblazers have paved the way and proven that borrowers are ready to pay a premium for instant, contextualized, and user-friendly digital credit. 

This created a new sense of innovation urgency in the industry, which we’re witnessing right now despite slower overall economic growth. 

At TurnKey Lender, we’ve been pushing for AI-powered end-to-end lending automation since 2014. Recent years have shown that even conservative financial institutions have become eager to use a powerful SaaS like TurnKey Lender instead of their legacy homemade infrastructures.” 

How do large-scale lenders adapt  

The market has been buzzing about the embedded lending revolution for the last few years, but what changes have happened to the thinking of the traditional finance providers? 

Dmytro Voronenko comments: “We see more and more traditional finance providers, both consumer and commercial, experimenting and innovating to stand out. For example, every day, more lenders start using segment-specific alternative credit scoring data for automatic low-risk loan decisions. 

In short, large-scale finance providers have come to terms with the digital-first reality, and right now, we’re going through a massive shift in the marketplace as they transform their operations. And, of course, we’re happy to help them do so correctly.” 

What’s stopping 70% of lending businesses? 

Despite the clear benefits of digital transformation, McKinsey & Company reports that only 30% of banks have successfully transformed digitally. If the digital transformation of credit has become so commonplace, what is stopping the rest? 

Dmytro explains: “Making the jump to a new digital infrastructure is scary, even when you know it’s necessary. Many of the remaining 70% also tried going digital but failed. Most often due to a poor strategy and the wrong technological choices. 

Every financial institution understands that managing lending processes manually from a branch is not sustainable when more competitors offer instant digital approvals online each day. 

So what stops them now is a lack of digital expertise and fear of failure in the environment where they may only have one chance to retain their audience in the digital world. In many cases, there’s also resistance from internal stakeholders used to working the old way. 

That said, the transition to a digital-first process is inevitable, and every day of delay costs the business another fraction of its user base. That is why McKinsey & Company, Deloitte, KPMG, and other prominent companies recommend prioritizing digital efforts now more than ever. As proven by independent reviews and ratings, the TurnKey Lender Platform has all the necessary capabilities to make the digital transformation of the lending business a whopping success.”  

Why TurnKey Lender to digitize your lending process 

TurnKey Lender platform automates complex lending processes for creditors worldwide and is recognized as a leading automation provider for consumer and commercial finance providers by researchers at IDC, Gartner and others. For example, here’s one of the IDC reports with TurnKey Lender leading the space in Consumer Lending Decisioning Platforms.

Some of the things that make us stand out include

  • End-to-end loan lifecycle management – TurnKey Lender offers robust automation of complex lending processes including loan origination, servicing, and collection, tailor-fit for the requirements large-scale operations demanding efficiency and precision. 
  • Advanced, customizable credit scoring – using traditional and alternative data in our scorecards, we integrate proprietary AI algorithms for credit assessment, allowing for instant decisioning and approval even in diverse portfolios. It accommodates varied risk profiles and provides customizable scoring models to cater to specific lending criteria. 
  • Streamlined implementation and integration: Designed for easy integration with existing systems, TurnKey Lender simplifies migration. The user-friendly interfaces and simplified workflows reduce the learning curve for staff, essential for large-scale organizations undergoing digital transformation. 
  • Scalable solution for diverse portfolios: Tailored to handle high volumes and varied types of credit products within one platform, making it ideal for large-scale lenders seeking to expand or diversify their product offerings without compromising on operational integrity and rising credit risk. 
  • Proven track record with major financial institutions: Demonstrated product-market fit is reflected in the efficiency and profitability of lending operations in over 50 countries using TurnKey Lender as well as praise from the industry’s researchers and analysts.  

What TurnKey Lender lets you do 

  • Enhance the user experience by implementing real-time application processing and empower borrowers with fully digital loan management and communications.  
  • Grow your portfolios and volume of transactions efficiently while reducing operational costs. 
  • Expand your reach, tapping into new markets and diversifying the customer base. 
  • Remain competitive by continuously developing innovative credit products that cater to evolving consumer needs and preferences. 
  • Reduce credit risk and operational costs with fully automated credit scoring powered by traditional and alternative scoring data. 

Final thoughts 

Traditional B2C and B2B finance providers must learn from digital-first lending products to stay relevant and competitive. The shift to digital is not just inevitable but essential for growth and sustainability in the current financial landscape. TurnKey Lender offers a pathway to this transformation, providing the tools and support necessary for a successful transition. 

For executives in financial institutions apprehensive about digital transformation, the message is clear: the future is digital, and the time to act is now. Reach out to explore how TurnKey Lender can guide your institution through this journey

Share:

A large portion of credit has moved to the point of sale forcing traditional and alternative lenders to embrace innovation and adapt to maintain and grow their borrower base.

Nonetheless, most financial institutions still can’t meaningfully automate their manual loan origination, loan management, and debt collection processes.   

For established lenders, reimagining the operations of your lending business is a major undertaking, especially considering these factors:

  • implementation of the new credit policy  
  • transformation and migration of legacy data 
  • the need to train staff and educate existing clients 

Luckily, these challenges aren’t unique. Consumer and commercial lenders in 50+ countries use TurnKey Lender to digitize all elements of credit and service ~100 million borrowers.  

But first, would you like to learn how we use AI to automate credit processes for b2b and b2c lenders in 50+ countries?

We’ve asked the company’s CEO and co-founder, Dmytro Voronenko, PhD what established large-scale finance providers need to understand and do to improve the ROI of their lending and banking technology investment. 

How urgent is it for your lending business? 

Over the last several decades, the talk of urgent digital transformation of financial products and services has been ongoing. And the flood of digitalization during the pandemic set new standards for how borrowers want to interact with lenders. 

So how can large-scale consumer and commercial lenders capitalize on the lessons of the embedded lending revolution? 

Dmytro comments: “The embedded finance phenomenon showed traditional and alternative lenders that their place in the marketplace isn’t theirs by default. BNPL trailblazers have paved the way and proven that borrowers are ready to pay a premium for instant, contextualized, and user-friendly digital credit. 

This created a new sense of innovation urgency in the industry, which we’re witnessing right now despite slower overall economic growth. 

At TurnKey Lender, we’ve been pushing for AI-powered end-to-end lending automation since 2014. Recent years have shown that even conservative financial institutions have become eager to use a powerful SaaS like TurnKey Lender instead of their legacy homemade infrastructures.” 

How do large-scale lenders adapt  

The market has been buzzing about the embedded lending revolution for the last few years, but what changes have happened to the thinking of the traditional finance providers? 

Dmytro Voronenko comments: “We see more and more traditional finance providers, both consumer and commercial, experimenting and innovating to stand out. For example, every day, more lenders start using segment-specific alternative credit scoring data for automatic low-risk loan decisions. 

In short, large-scale finance providers have come to terms with the digital-first reality, and right now, we’re going through a massive shift in the marketplace as they transform their operations. And, of course, we’re happy to help them do so correctly.” 

What’s stopping 70% of lending businesses? 

Despite the clear benefits of digital transformation, McKinsey & Company reports that only 30% of banks have successfully transformed digitally. If the digital transformation of credit has become so commonplace, what is stopping the rest? 

Dmytro explains: “Making the jump to a new digital infrastructure is scary, even when you know it’s necessary. Many of the remaining 70% also tried going digital but failed. Most often due to a poor strategy and the wrong technological choices. 

Every financial institution understands that managing lending processes manually from a branch is not sustainable when more competitors offer instant digital approvals online each day. 

So what stops them now is a lack of digital expertise and fear of failure in the environment where they may only have one chance to retain their audience in the digital world. In many cases, there’s also resistance from internal stakeholders used to working the old way. 

That said, the transition to a digital-first process is inevitable, and every day of delay costs the business another fraction of its user base. That is why McKinsey & Company, Deloitte, KPMG, and other prominent companies recommend prioritizing digital efforts now more than ever. As proven by independent reviews and ratings, the TurnKey Lender Platform has all the necessary capabilities to make the digital transformation of the lending business a whopping success.”  

Why TurnKey Lender to digitize your lending process 

TurnKey Lender platform automates complex lending processes for creditors worldwide and is recognized as a leading automation provider for consumer and commercial finance providers by researchers at IDC, Gartner and others. For example, here’s one of the IDC reports with TurnKey Lender leading the space in Consumer Lending Decisioning Platforms.

Some of the things that make us stand out include

  • End-to-end loan lifecycle management – TurnKey Lender offers robust automation of complex lending processes including loan origination, servicing, and collection, tailor-fit for the requirements large-scale operations demanding efficiency and precision. 
  • Advanced, customizable credit scoring – using traditional and alternative data in our scorecards, we integrate proprietary AI algorithms for credit assessment, allowing for instant decisioning and approval even in diverse portfolios. It accommodates varied risk profiles and provides customizable scoring models to cater to specific lending criteria. 
  • Streamlined implementation and integration: Designed for easy integration with existing systems, TurnKey Lender simplifies migration. The user-friendly interfaces and simplified workflows reduce the learning curve for staff, essential for large-scale organizations undergoing digital transformation. 
  • Scalable solution for diverse portfolios: Tailored to handle high volumes and varied types of credit products within one platform, making it ideal for large-scale lenders seeking to expand or diversify their product offerings without compromising on operational integrity and rising credit risk. 
  • Proven track record with major financial institutions: Demonstrated product-market fit is reflected in the efficiency and profitability of lending operations in over 50 countries using TurnKey Lender as well as praise from the industry’s researchers and analysts.  

What TurnKey Lender lets you do 

  • Enhance the user experience by implementing real-time application processing and empower borrowers with fully digital loan management and communications.  
  • Grow your portfolios and volume of transactions efficiently while reducing operational costs. 
  • Expand your reach, tapping into new markets and diversifying the customer base. 
  • Remain competitive by continuously developing innovative credit products that cater to evolving consumer needs and preferences. 
  • Reduce credit risk and operational costs with fully automated credit scoring powered by traditional and alternative scoring data. 

Final thoughts 

Traditional B2C and B2B finance providers must learn from digital-first lending products to stay relevant and competitive. The shift to digital is not just inevitable but essential for growth and sustainability in the current financial landscape. TurnKey Lender offers a pathway to this transformation, providing the tools and support necessary for a successful transition. 

For executives in financial institutions apprehensive about digital transformation, the message is clear: the future is digital, and the time to act is now. Reach out to explore how TurnKey Lender can guide your institution through this journey

Share:

RELATED SOLUTIONS

auto-dealership-financing-software-basics-turnkey-lender

Why Auto Dealers Should Consider Digitizing Their In-House Lending Programs

10 questions to ask your LOS vendor - large

10-point checklist for choosing your new loan origination software  in 2024