Business Models for Digital Lending Modernization

Business Models for Digital Lending Modernization

This IDC Perspective discusses digital lending transformation trends and presents a selection of go-to-market business models. Digital lending aligns well with IDC's 3rd Platform core technologies including cloud computing, big data/analytics, and mobility. Through modernization of digital lending, FIs will experience cost savings, operational productivity, and enhanced customer experience with an opportunity to establish longer-term relationships with their customers. Some challenges and risks to digital lending remain such as increasing regulatory action and fraudulent activity.According to Raymond Pucci, research director, Worldwide Digital Lending Transformation Strategies at IDC, and coauthor of this document, "Fintechs have led the way in offering digital lending services to both consumers and small businesses. Now FIs are playing catch-up and are investing heavily in technology platforms for digital lending. By providing digital lending services, FIs will improve the customer experience and build sustainable banking relationships."

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