New "State of Digital Lending" Report Reveals Over 50% of Organizations Struggle to Deliver Fast, Seamless Digital Lending Experiences
MeridianLink's 2024 State of Digital Lending report, in collaboration with The Digital Banking Report, reveals significant challenges in digital lending despite increased mobile applications. Key findings include:
- 65% of loan applications now submitted via mobile, up from 34% in 2019
- Over 50% of organizations claim a fully digital lending process
- 90% offer online loan applications, but only 65% provide mobile options
- Consumer ability to complete online applications dropped from 76% (2021) to 57% (2024)
- Completion rates vary: 81% for credit cards, 65% for auto loans, 35% for mortgages, 17% for small business loans
The report emphasizes the need for financial institutions to rethink processes and embrace digital lending to meet modern consumer expectations.
Il rapporto di MeridianLink sul Stato del Prestito Digitale 2024, in collaborazione con The Digital Banking Report, rivela sfide significative nel prestito digitale nonostante l'aumento delle richieste tramite mobile. Tra i principali risultati troviamo:
- Il 65% delle domande di prestito è ora presentato tramite mobile, rispetto al 34% nel 2019
- Oltre il 50% delle organizzazioni dichiara di avere un processo di prestito completamente digitale
- Il 90% offre domande di prestito online, ma solo il 65% fornisce opzioni mobile
- La capacità dei consumatori di completare le domande online è scesa dal 76% (2021) al 57% (2024)
- I tassi di completamento variano: 81% per le carte di credito, 65% per i prestiti auto, 35% per i mutui, 17% per i prestiti per piccole imprese
Il rapporto sottolinea la necessità per le istituzioni finanziarie di riconsiderare i processi e abbracciare il prestito digitale per soddisfare le aspettative moderne dei consumatori.
El informe de MeridianLink sobre el Estado del Préstamo Digital 2024, en colaboración con The Digital Banking Report, revela desafíos significativos en el préstamo digital a pesar del aumento de las solicitudes móviles. Los hallazgos clave incluyen:
- El 65% de las solicitudes de préstamo se presentan ahora a través de móviles, frente al 34% en 2019
- Más del 50% de las organizaciones afirman tener un proceso de préstamo completamente digital
- El 90% ofrece solicitudes de préstamo en línea, pero solo el 65% proporciona opciones móviles
- La capacidad de los consumidores para completar solicitudes en línea cayó del 76% (2021) al 57% (2024)
- Las tasas de finalización varían: 81% para tarjetas de crédito, 65% para préstamos de auto, 35% para hipotecas, 17% para préstamos de pequeñas empresas
El informe enfatiza la necesidad de que las instituciones financieras repiensen los procesos y adopten el préstamo digital para cumplir con las expectativas modernas de los consumidores.
MeridianLink의 2024년 디지털 대출 현황 보고서에서는 디지털 대출에서의 주요 어려움이 나타났으며, 이는 모바일 신청 건수가 증가했음에도 불구하고 그렇습니다. 주요 발견사항은 다음과 같습니다:
- 대출 신청의 65%가 이제 모바일을 통해 제출되며, 이는 2019년의 34%에서 증가한 수치입니다
- 50% 이상의 조직이 완전 디지털 대출 프로세스를 주장합니다
- 90%는 온라인 대출 신청을 제공하지만, 모바일 옵션은 65%만 제공합니다
- 소비자가 온라인 신청을 완료할 수 있는 능력이 2021년 76%에서 2024년 57%로 감소했습니다
- 완성률은 신용카드 81%, 자동차 대출 65%, 주택담보대출 35%, 소기업 대출 17%입니다
이 보고서는 금융 기관이 프로세스를 재검토하고 디지털 대출을 수용하여 현대 소비자의 기대에 부응할 필요성을 강조하고 있습니다.
Le rapport de MeridianLink sur l'État du Prêt Numérique 2024, en collaboration avec The Digital Banking Report, révèle des défis importants dans le prêt numérique malgré l'augmentation des demandes mobiles. Les principales conclusions sont les suivantes :
- 65% des demandes de prêt sont maintenant soumises via mobile, contre 34% en 2019
- Plus de 50% des organisations affirment avoir un processus de prêt entièrement numérique
- 90% proposent des demandes de prêt en ligne, mais seulement 65% offrent des options mobiles
- La capacité des consommateurs à compléter les demandes en ligne a chuté de 76% (2021) à 57% (2024)
- Les taux de finalisation varient : 81% pour les cartes de crédit, 65% pour les prêts automobiles, 35% pour les hypothèques, 17% pour les prêts aux petites entreprises
Le rapport souligne la nécessité pour les institutions financières de repenser les processus et d'adopter le prêt numérique pour répondre aux attentes modernes des consommateurs.
Der Bericht von MeridianLink über den Zustand des digitalen Kreditmarktes 2024, in Zusammenarbeit mit dem Digital Banking Report, zeigt signifikante Herausforderungen im digitalen Kreditwesen, trotz eines Anstiegs der mobilen Anträge. Die wichtigsten Erkenntnisse umfassen:
- 65% der Kreditanträge werden jetzt über mobile Geräte eingereicht, im Vergleich zu 34% im Jahr 2019
- Über 50% der Organisationen geben an, einen vollständig digitalen Kreditprozess zu haben
- 90% bieten Online-Kreditanträge an, aber nur 65% bieten mobile Optionen an
- Die Fähigkeit der Verbraucher, Online-Anträge abzuschließen, ist von 76% (2021) auf 57% (2024) gesunken
- Die Abschlussraten variieren: 81% für Kreditkarten, 65% für Autokredite, 35% für Hypotheken, 17% für Kredite an kleine Unternehmen
Der Bericht betont die Notwendigkeit für Finanzinstitute, Prozesse zu überdenken und den digitalen Kreditmarkt zu nutzen, um den modernen Verbraucheranforderungen gerecht zu werden.
- 65% of loan applications now submitted via mobile, showing significant growth from 34% in 2019
- 90% of financial institutions offer online and web loan applications
- 81% of consumers complete credit card applications online
- 65% of consumers complete auto loan applications online
- Over 50% of organizations struggle to deliver fast, seamless digital lending experiences
- Only 65% of financial institutions provide a mobile application process
- Consumer ability to complete loan applications online decreased from 76% in 2021 to 57% in 2024
- Only 35% of consumers complete mortgage applications online
- Only 17% of consumers complete small business loan applications online
Insights
The report unveils significant trends in digital lending, highlighting both progress and challenges for financial institutions. 65% of loan applications are now submitted via mobile, a substantial increase from previous years. However, the ability to complete applications entirely online has decreased from 76% to 57%, likely due to regulatory hurdles.
This dichotomy presents both opportunities and obstacles for fintech companies and traditional banks. The growing demand for mobile solutions suggests a need for more robust, user-friendly mobile platforms. Conversely, the decline in full online completion rates indicates a market gap for solutions that can navigate complex regulatory requirements while maintaining a seamless user experience.
For investors, this report signals potential growth areas in fintech, particularly in solutions that can bridge the gap between mobile application submission and full online completion. Companies offering regulatory compliance tools integrated with digital lending platforms may see increased demand. However, the sector faces challenges in balancing innovation with regulatory compliance, which could impact short-term profitability but drive long-term value for those who succeed.
The report reveals a critical misalignment between consumer expectations and the digital lending capabilities of many financial institutions. While 90% of institutions offer online loan applications, only 57% allow full online completion, varying significantly by loan type. This gap represents a substantial opportunity for banks to improve their digital offerings and capture market share.
The disparity in online completion rates across different loan types (81% for credit cards vs. 17% for small business loans) suggests that institutions need to prioritize streamlining more complex lending processes. This could involve investing in advanced AI and automation technologies to simplify underwriting and approval processes, particularly for more complicated loan types.
For consumers, this trend promises more convenient lending experiences in the future, but also highlights the current frustrations many may face when seeking loans online. Banks that can quickly adapt to these consumer demands are likely to see increased customer acquisition and retention, potentially reshaping market dynamics in the consumer banking sector.
The report's findings underscore the growing tension between digital innovation and regulatory compliance in the lending sector. The decrease in full online loan completion from 76% to 57% likely stems from increasingly complex regulatory and compliance requirements. This trend highlights the critical need for sophisticated regulatory technology (RegTech) solutions in the digital lending space.
Financial institutions face a dual challenge: meeting consumer demands for seamless digital experiences while ensuring robust compliance with evolving regulations. This presents significant opportunities for RegTech firms specializing in digital lending compliance, as banks and credit unions will likely increase investment in these solutions to navigate the regulatory landscape effectively.
Investors should note that while regulatory challenges may slow immediate growth in digital lending, they also create a barrier to entry that could benefit established players with strong compliance frameworks. Long-term, institutions that successfully balance innovation and compliance will likely emerge as leaders in the digital lending market, potentially driving consolidation in the sector.
MeridianLink, in Partnership with the Digital Banking Report, Shares Insights on the State of Digital Lending
While over
“The landscape of lending is undergoing a profound transformation, where leaders in the financial services industry find themselves at a critical juncture. As we navigate this shifting terrain, it is imperative that financial institutions approach the future with a strategic mindset, embracing digital lending as a catalyst for building resilience, and being future ready,” said Marous. “With their deep understanding of the digital lending landscape and their commitment to empowering financial institutions, MeridianLink is uniquely positioned to guide financial institutions through the complexities of this digital transformation.”
Key findings from the report include:
-
90% of financial institutions now offer online and web loan applications, yet only65% provide a mobile application process. -
Consumers to complete a loan application online has decreased, dropping from
76% in 2021 to57% in 2024, likely due to growing regulatory and compliance requirements. -
57% of institutions reported consumers can complete the entire loan application online, though completion rates vary by loan type. -
81% of financial institutions said consumers complete credit card applications online,65% for auto loans,35% for mortgages, and17% for small business loans.
“Financial institutions have made significant progress on their digital capabilities in the last few years, particularly since the pandemic, but these report findings make clear that there is more work to be done to ensure every American has access to convenient, safe, and seamless digital experiences,” said Devesh Khare, chief product officer at MeridianLink. “MeridianLink is proud to empower a broad cross-section of credit unions, banks, and mortgage lenders to continue their digital progression journeys and support the important work these institutions are doing to make digital banking and lending services more accessible than ever before.”
As financial institutions continue to navigate the evolving digital landscape, they will likely face challenges such as navigating complex regulations, maintaining top-tier data privacy and security, and implementing AI-driven automation. As the digital lending landscape evolves, institutions that prioritize speed, simplicity, and advanced functionality should be best positioned to meet growing consumer demands.
Banks and credit unions struggling to manage these challenges should consider a partner with expertise in both innovative technologies for financial institutions and the regulation that governs its use. This is not only an excellent risk mitigation strategy but serves as a way to ensure the institution stays at the forefront of technological developments in the industry. The report found that, in general, financial institutions using partner solutions to help meet consumers’ digital needs and requirements will be more competitive than the organizations simply relying on legacy banking tactics.
The “State of Digital Lending” report released by Digital Banking Report is sponsored by and produced in collaboration with MeridianLink. It is available for download free of charge here.
The “State of Digital Lending” Report Methodology
The Digital Banking Report conducted an online survey of 252 financial institutions worldwide, with
ABOUT MERIDIANLINK
MeridianLink®(NYSE: MLNK) empowers financial institutions and consumer reporting agencies to drive efficient growth. MeridianLink’s cloud-based digital lending, account opening, background screening, and data verification solutions leverage shared intelligence from a unified data platform, MeridianLink® One, to enable customers of all sizes to identify growth opportunities, effectively scale up, and support compliance efforts, all while powering an enhanced experience for staff and consumers alike.
For more than 25 years, MeridianLink has prioritized the democratization of lending for consumers, businesses, and communities. Learn more at www.meridianlink.com.
ABOUT DIGITAL BANKING REPORT
The Digital Banking Report provides the largest collection of free, in-depth insights into how data, digital technologies, innovation, and new competition are changing the banking industry.
Curated by Jim Marous, a top five financial industry influencer, the Digital Banking Report provides practical and unbiased guidance for bank and credit union product managers, marketers, and C-level executives. It equips them with the knowledge to enhance their digital, online, and mobile offerings. Executives can access more than 200 previously published reports in the digital archives.
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Sydney Wishnow
meridianlinkPR@clyde.us
(508) 808-9060
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Source: MeridianLink, Inc.
FAQ
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