Revolutionize the loan industry with “Digital Credit”

Revolutionize the loan industry with "Digital Credit"

  • Loan process Is ineffective Until the world entered the “dot com” era
  • People began to learn little by little that He can easily open the internet and find ways to recover money from other sources. There are startup companies that provide loan services. Or is a channel for Peer to peer loans that occur as a mushroom
  • Huge data is analyzed effectively with algorithms. And artificial intelligence In order to evaluate the financial status of users in real time and summarize in the form of digital credit waiting to be activated at the time
  • For banks with a corporate value of 250 Billion USD, increased efficiency with digital credit can generate up to USD 230 million annually per year.

“Loan” is in partnership with our capitalist world for a long time. And equally long See to be a slow loan system Full of steps and documents Including a lengthy interview that must be answered in a freakout

“Bank” is considered a popular source of credit. Because there is a huge amount of loan that can allow borrowers Lending under the conditions stipulated by law And did not charge interest at an expensive rate (If compared to other lenders that the law has not reached

In general, if there is no problem The evaluation takes approximately 3-5 weeks and more than the loan will come ashore. Then spas for about 3 months. The loan process is so ineffective. Until the world entered the “dot com” era

The internet and the dawn of the revolutionary loan system

The internet and the dawn of the revolutionary loan system

The internet has caused two changes.

First, the loan comes a little easier.

Online borrowing occurred for the first time since the 1990s, or almost the same as the early days of the internet. Came to help facilitate the borrower to send information to the bank Or other lenders more easily There is a reduction of some documents because they can fill out online information. And can directly send to the database The difficulty may be reduced. But in the end Tedious things And lasted for a long time, as the assessment of “credit” has not gone away

Second, everyone has access to funding. And other loans easier

After the 2008 economic crisis, the rate of approvals from banks around the world is below 10%. That means 9 out of 10 people of the loan applicant are denied.

But then soon after People began to learn little by little that He can open the internet. And easily find ways to recover money from other sources There are startup companies that provide loan services. Or as a channel for Peer to peer is a mushroom. Funding has started to circulate. And bring the economy to gradually recover back

When the overall economy improves In addition, the bank began to lose customers gradually. The bank therefore has to accelerate to adjust itself. In 2012, the loan approval rate jumped 10% for the first time. And never fell below 10% again

The fierce competition That results in the financial industry Kick yourself into the “digital credit” era

“Digital Credit” Tips of superior service

Jack Ma , founder of Alibaba (Alibaba, a global Chinese e-commerce company), once said “Any revolution in the industry Often starting with a simple idea of ​​one person, “I should have done better.” Alibaba has an e-commerce platform. For every product purchase Whether it’s buying, buying, buying, buying new products or buying second-hand products.

not only Ali Baba also offers “AliPay” (Alipay), the most popular telephone payment system in China as well (along with Vetch Pay). (Transaction) occurs on the Alibaba platform Both the need to buy-sell Amount of money paid The speed of payment after ordering Ratings to sellers When the buyer receives the goods and other The company therefore has a lot of financial information of users.

These data are analyzed effectively with algorithms. And artificial intelligence In order to evaluate the financial status of users in real time and summarize in the form of digital credit waiting to be activated. By the time in 2014, Ali Pay separated the management from Alibaba. And set up another company called Ant Financial to move into the financial industry.

Ant Financial provides a wide range of financial services. Especially the loan release

The lending of this ant Did not go through a variety of evaluation processes And lasted for a long time Conversely, the approval of a credit line from digital credit can occur in just 10 minutes and the borrower will receive the money within 24 hours.

At present, the financial value of the company is 60 Billion USD or about 2 trillion baht. The little ant has already borrowed more than 95 Billion USD or more than 3 million baht. Higher than the second largest bank in China

When the fish is smaller, faster Big fish have to adjust themselves.  

Ant Financial is just one example of a modern financial company that is revolutionizing the loan system using technology. Combined with the enormous data available Come to develop a loan process to be effective In the current financial industry.

Currently, the goal of the bank around the world is to develop a loan service. “End-to-end credit journey” to best serve customers Both fast And simplicity By focusing on small and medium business customers (SMEs) primarily based on global trends. (Personalized) that is suitable for that customer to get from the past information of the customer. When customers show their loan requirements The process of requesting evidence documents can be done online. And the loan is approved immediately Because the history of the customer is already evaluated in the digital credit image

What happened from this revolution was Efficiency increased by up to 30%. Costs disappeared from eliminating useless interactions. Enabling the bank to offer products at a cheaper price than competitors And convenience and speed also result in more customers opening accounts For banks with an enterprise value of 250 Billion USD, this increased efficiency Can generate annual income of 230 million dollars per year.

Repeated writing a new history

Even though it has an aromatic effect But the adaptation of things that have been practiced since ancient times has never been easy

Reliable automation Considered the first important factor When evaluating a customer, not through the ears, through the eyes of a person who has no experience anymore, the algorithms and artificial intelligence that come to represent must be stable. And reliable Which the trust that humans have for computers in this difficult and delicate work Is still the main problem of the system revolution

The variety of loan products makes it more difficult for this job. Because the loan has a variety of forms Vary according to the purpose of the borrower

Individual loans are easy. And not complicated But if switching to a SME business loan The chaos will rise to the next level.

Even when stepping up to be a “Corporate” loan (Corporate is a large company), even if there is no urgency Because large corporations often have an assessment of financial status in advance And manage according to plan But with huge loans Making the assessment may be very careful

Mortgage loan Both buying a car and buying a house (or other assets) is considered complicated. Because it involves a third party, like the project owner Or car sales company Management must be more thorough.

And the most important problem that financial institutions have to encounter is “people” or finding effective personnel to spearhead the revolution. Because with this modern lifestyle That often does not have much loyalty in the organization Therefore does not work much While the original loan system revolution has long been It must take at least 3 years if changing the responsible person in the middle. Everything will stumble.