The realm of loans is evolving in a rapid pace thanks to?fintech (financial technology) and technological tools which have increased loan process efficiency, lender competition, and resources open to both lenders and consumers. In 2019,?more than 500?fintech startups received funding, and you can make sure that much more are emerging today to help both lenders and consumers in the loan process. As fintech transforms the way lenders and consumers approach the loan process, financial institutions will need to keep up with trends to be able to stay ahead. Learn more about the way in which fintech is evolving the mortgage, student loan, peer-to-peer loan, and car loan industries.
Mortgages: eClosings around the rise
A 2019 study by the Consumer Financial Protection Bureau (CFPB) found that consumers were dissatisfied using the mortgage closing process, particularly the reviewing and signing of documents. The CFPB then studied 3,000 consumers and found that electronic closings – also referred to as eClosings – resulted in better consumer knowledge of the mortgage closing process, a far more efficient closing process, and greater feelings of consumer empowerment during the closing process. Although adoption of eClosings is currently low, we expect that lenders will increasingly depend on this technology soon.