Getting a loan is anything but easy. It requires filling out lengthy applications, providing sources of income, going through credit checks, and engaging in an endless exchange of other detailed minutiae.
In addition, application approval can drag on for days as lenders laboriously gather information and vet candidates. Once approved, it can take even more time before the money shows up in a person’s bank account.
The traditional loan process is a lengthy and exhausting activity. However, many innovative brands are applying technology to speed things up and make getting a loan an easier task for consumers. Here are a few examples of those tech platforms along with a brief description of how each one is creating a simpler financial future.
1. Truework Is Accelerating the Application Process
Processing applications is a nasty little step that can leave loan applicants in limbo for lengthy periods of time. Truework is a tech platform that streamlines the loan application process by bringing each borrower’s relevant income and employment information into a single, accessible location.
The company obtains explicit consent from consumers to collect and share their sensitive information during important financial events, like buying a home or getting a new job. This consumer-first approach empowers individual borrowers and gives them control over the process of sharing their personal information.
When it comes to loans, in particular, the software reduces application friction through a one-stop platform. This houses important loan information that immediately becomes available when it is approved for sharing by an individual. This allows loan processors to access the major VOI/E (verification of income/employment) methods without wasting time or using multiple tools.
Truework is reducing the work associated with loan applications through safe, secure workflow automation of the verification process. The result is a faster application process time, which makes getting a loan much easier.
2. Avant Is Speeding Up Loan Processing Times
Once a lender approves an application, a borrower still needs to wait for the money to arrive in their checking account. In the past, this has often taken the traditional “one to three business days.” In cases where further approval needs to take place, that timeline can be even longer.
Avant is a brand that is speeding up this loan processing time. The company offers loans for anywhere from a few thousand dollars to as much as $35,000 dollars. These personal loans can go toward anything from a medical bill or home improvement project to covering an unexpected expense.
Due to the time-sensitive nature of many of these scenarios, Avant works fast. Once approved, the company funds most loans via lightning-fast ACH deposit by the next business day.
In addition, Avant is willing to work with individuals with sub-600 credit scores. However, it’s worth remembering that this is a business, not a charity. High-risk borrowers typically face higher interest rates in exchange for approval and rapid delivery of their borrowed funds.
3. Lending Point Is Using AI to Improve Applications
Lending Point is a high-speed loan processor. The tech platform offers unsecured personal loans from $2,000 to as much as $36,500.
The brand stands out because it doesn’t just see a loan applicant’s viability through a specific filter, such as credit scores or current assets. It uses proprietary AI-driven technology and algorithms to make rapid decisions.
This smart technology takes important personal data, including employment history, earning potential, and so on, to create a comprehensive picture of a borrower. This allows the company to decide an individual’s creditworthiness in seconds.
The result is a borrower profile that enables the lender to decide the loan options available to the lendee quickly. This helps struggling consumers access much-needed cash in the moment, not days or weeks after it’s needed.
4. Upstart Is Streamlining Peer-to-Peer Lending
Upstart is a consumer lending company that has been the poster child for peer-to-peer lending for years now. The platform makes it remarkably easy for borrowers to process their information and apply for a loan.
Part of this ease comes from the less complex nature of lending money outside of the traditional banking industry. Upstart is streamlining the entire loan process by enabling consumers to lend money to one another.
Its platform simply works as an intermediary between those with money to lend and those who want to borrow it with interest. Applications are quick, and a potential borrower can see a rate estimate within five minutes. As with Lending Point, Upstart looks for a more holistic picture rather than using traditional credit score-only models, which often leads to lower rates.
Paving the Way for a Simpler Financial Future
Borrowing money may be a traditionally complicated and lengthy process. But there are plenty of companies working to simplify the activity.
Some, like Truework and Avant, are streamlining applications and processing times. Others, like Lending Point and Upstart, are finding innovative ways to source funding and vet applicants more comprehensively.
Taken altogether, these tech platforms are pioneering a new frontier in finance. Their collective contributions are making it easier than ever for consumers to access, qualify for, and fund loans as they go about living their daily lives.
