We all know how cumbersome the loan application process could be. All that paperwork and then there are additional formalities also. And most annoying of all is the waiting period between the loan approval and disbursal.
Thankfully, modern technology has simplified financial management.
Did you know you could now apply for a loan online and receive it in your bank account instantly?
Well, yes you can, if you know where to look for an online loan.
In fact, online payday loans are not new at all. They’ve been around for nearly a decade now. However, some recent technology upgrades have brought them into the limelight. And one of the upgrades is the integration of a cloud-based AI system for faster loan processing.
To put this into perspective, consider a situation. You apply for e-transfer payday loans in Canada at Friendlylender.ca and get instant approval. Unlike the conventional loaning process where it might take weeks before your loan is approved, this seems an instant solution. And it all has been possible because of automation.
We all know how automation can simplify any process. Reduced errors and better products are the least of the many benefits that automation has to offer.
But, the real question is how does automation help in online loan processing? There are no products, and there are always high risks involved in financial transactions. So, should automation be relied on when considering an online payday loan? Or simply, how does it work?
Don’t worry, this article will take you through all these questions. So, keep reading for more information.
How Does Automation Work For Online Loans?
With cloud-based applications coming to mainstream consumerism handling consumer data has become easier. Borrowers can now easily feed in their information, whether on browser-based application or native. And likewise, the lenders can check this information and process the requests as needed.
But, the real benefit of cloud-based systems is- the whole process from loan origination to loan servicing can be automated. Dedicated servers and computing algorithms go through sets of data that can help establish the credibility of a borrower. And likewise can also suggest loan packages and disburse amount on approval.
It is indeed the short-term quick cash loans that have been transformed completely with the help of automation and cloud computing. And since most of these loans are typically accessed online, the benefits are manifolds.
For example, there is no paperwork involved since the complete process is digitally assisted. Likewise, the AI front desk can connect the borrowers with multiple lenders at the same time. And therefore, improves the chances of loan approval even with a bad credit score.
So, in a way, automation has simplified the loan application process for the borrowers and the lenders, alike.
How Does Automation Benefit Borrowers?
On this note, it makes sense to know how does the automation benefit, exactly. As we already know that automation has improved the processing speeds and chances of approval for the borrowers. But, are these the only benefit it offers? Certainly, not.
Reliability On The Lenders
The very first benefit that cloud-based lending networks have to offer to the users is the reliability of the lender. Since most of the online lenders operate privately, there are chances of high-interest rates being charged by them. Of course, there are government agencies that regulate this part, but still, most of it lies on the grey lines.
At the backend, the automated servers do a background check on the lenders. And only after assessing their reliability do they list them in their networks.
Another benefit that automation has to offer is the choice of financing institute or the lender. The users are promptly connected with many lenders. And notably, every lender offers a different package.
So, as a result, the borrowers get to choose from the options that suit their needs. Or in other words, the borrowers can customize their loan packages.
The best of all is that the borrowers can choose their payment options. Since no single loan offer is made to the users, every package is different.
Moreover, the borrowers can choose to repay in a one-time payment or in installments. And also there are options to pay through the online portals or through the bank.
How Does Automation Benefit Online Lenders?
As already mentioned, automation benefits both- the borrowers and the lenders, alike.
While the borrowers find it easy to apply for the loans, the lenders find it easy to handle their data. Since all the data is stored over the cloud server, lenders can access this information as and when they need it.
Automation also makes it easier to do a credit check on the applicants. Of course, a no- credit-check loan is a misleading statement. Every lender ensures that the money they lend is returned and that too with profits for them.
Quick And Hassle-Free Process
Most importantly, there are filing processes involved. All that the lenders need is to ensure that the borrower can repay the loan. And automation does that for them. The lenders no longer need to scroll through bank statements and financial checks manually. It’s all taken care of with the help of cloud computing.
With all these benefits it might seem like taking out an online payday loan is quite convenient. But still, one perpetual question should lurk into your mind; with digital crimes also increasing, should you rely on an automated loaning process?
Should You Rely On An Automated Loaning Process?
It is quite surprising how computer learning and artificial intelligence can identify the weak points in any process. And likewise, they can also reduce the risks of being jeopardized.
To put this into perspective, cloud servers are usually hosted over private networks which are not so easy to hack into. Besides, there are several firewalls installed just to make sure no trojan or malware could get into the server.
In short, automated loaning processes are quite convenient and safe. But, it still depends on the information that you’re sharing. If you’re not sharing too sensitive information, taking out an online payday loan should not be worrisome for you.
In the end, automation has simplified lives for the people struggling to manage their finances. And likewise has helped them resolve their financial issues quickly.