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How Technology is Streamlining the US Lending Sector

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Today, people are more connected than any other time in history. Since people are constantly using computers and smartphones, most industries have adopted technologies that help in easier and faster service delivery to customers.

In the finance industry, the development of technology has transformed the landscape in the lending sector. In this article, you’ll learn more about how this industry has been affected by technology.

Technology creates better borrower experience

Basically, the lending process requires an exchange of some data between the borrower and the lending institution. Depending on the lender and the amount in question, you may be required to submit tens of pages of information before the application is approved.

As such, the process can be daunting given that you are expected to fill multiple forms as well as provide several documents.  Without patience and some free time, getting through the loan application with traditional banks is close to impossible.

However, when the lending process is digitized the amount of paperwork is reduced dramatically. This is because account activity, credit history, income history as well as tax compliance can be fed into the system with the click of a button. This has made the collection and verification of information quite easy. Besides streamlining the application process, the amount of time it takes to get a loan has also reduced.

In addition, some lenders have developed some innovative mobile solutions that enable customers to submit an application from anywhere. The most outstanding feature about mobile loans is that there is a constant interaction between the lender and the borrowers. This goes a long way in improving service delivery.

Increased transparency

In the past, borrowers had no access to a lender’s system that hold the borrower’s personal details as well as loan application status. This implies that most borrowers were in the dark for the most part of the lending process. When the need to communicate comes, the loan teams were the most potent option. This has been the reason why loan officers were getting hundreds of phone calls from clients who were dying to get the updates about the loans.

Courtesy of technology advancements, now it’s possible to view the status of your loan application as well as your account status with a lender. This helps borrowers to stay updated during the entire online installment loans process. In addition, you can get instant communication about any requests that a lender may have that is critical to the borrowing process.

As a result, there is a high collaboration between borrowers and lenders which makes the involved parties satisfied.

A less painful borrowing process

Traditionally, it takes an average of 18 days to get a loan approval. To get through the borrowing process, you need an extra 50 days if you are applying for a mortgage. But when you consider that it’s possible to purchase something from miles away at the comfort of your home and get it in a few hours, the long lending process seems like a bad joke.

To match the level of service delivery in this digital era, the financial sector has incorporated technology for a better experience. The innovative technology makes it possible for borrowers to navigate through the process thanks to great design and real-time customer support.

This makes it easy to switch from traditional lenders who implement outdated technology and business models. The comfort of knowing that you can get help from the lender in a matter of seconds has made the process painless.

It helps you save money

On average, a lender spends about $8,000 to finish one mortgage. This is because they have to pay employees to look into tons of information and collate in various databases. In a manual process, the tasks are repetitive and consume a lot of time. The tragedy here is that the borrower will cover these costs in the form of loan fees and charges.

But when innovative technology is used, much of the redundant tasks during the application process is scraped off. This means borrowing becomes cheaper for both lenders and borrowers. Besides the huge savings on cost, the process takes less time.

Over-reliance on human capital is eliminated and this implies there are fewer errors when gathering information. While this doesn’t conclude that technology has taken the place of experienced manpower, it helps create time and resources that are focused on other tasks with higher value.

Risks associated with technology in the lending sector

While technology has a way of making life more bearable, it comes with several risks. Basically, most of the information is transmitted online and this makes it easy for criminals to intercept the information. With data security being one of the biggest concerns in this industry, most companies are investing heavily in precautionary measures to keep their customers safe.

Therefore, if you are working with a reputable loan company that has implemented the necessary safety measures, you don’t need to worry. However, this doesn’t mean that you should submit a loan application to every online lender out there.

All lenders are not created equal and there are a few predatory businesses out there that can take advantage of vulnerable borrowers and charge astronomical interests. As such, you should restrain yourself from getting into an agreement with any lender who doesn’t have a track record of outstanding customer service and a demonstrated commitment to helping customers.

Finally, identity theft is real and can cause a serious problem if a criminal gets your personal information. Therefore, you should be careful when requesting loans through online platforms. As a rule of thumb, choose to work with businesses that have strict privacy policies as well as having the necessary security measures to prevent data theft.

Final words

Innovative technology has taken the financial industry by a storm and it has created a serious revolution in the industry. Unlike in the past, loans are now easily accessible to more people and the lending process is less painful.

Considering the current trends, it’s clear that more resources are going to be invested in this industry and create better technologies. While there is still much that needs to be done with regards to improving certain loans like mortgages, technology has transformed the sector.

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Belling The Cat: The Difficult Relationship of India with Turkey

The land of the Whirling Dervishes, where the compassionate views of Mevlana Jalaluddin Rumi have cast a lasting shadow, is India’s forbidden fruit

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Turkey and India's relationship is very rocky. Pixabay

By Tania Bhattacharya

  • India and Tukey share a bad relationship
  • There are numerous reasons for it
  • Some of the reasons are as trivial as they can get
Ms. Tania Bhattacharya

When the founder of the Turkish Republic, Mustafa Kemal Ataturk, passed away on the morning of the 10th of November 1938, months before the world broke out into war, a Turkish lady in the streets of Istanbul commented to a reporter covering the tragedy, lamenting “Turkey has lost her lover. Now, she must marry and settle down”. The incident is mentioned in Irfan’s Orga’s ‘Phoenix Ascendant’, a comprehensive biography of Mustafa Kemal Pasha.

National heroes are lionized almost everywhere among native communities; but Ataturk and his younger contemporary Subhash Chandra Bose, enjoy a kind of veneration among their people, that even hardened jingoists elsewhere, would not be caught doing. Subhash was an admirer of Ataturk and was determined to meet him, until the British overlords of India, put a spanner in the works. That was not all. In his ‘Glimpses Of World History’, India’s first Prime Minister Jawaharlal Nehru, made glowing references to Mustafa Kemal, calling him a progressive head of state with the singular objective of emancipating the women of his country. Indeed in Turkey, Kemalism is the byword for progressiveness and the radical intellectual approach.

India and Turkey have troubles due to Kashmir as well. VOA

The trajectory of Sultanate ridden Turkey, and post-colonial India have been analogous, but with a few exceptions. Both countries started out with a prominent Socialist outlook, and statesmen who could navigate the complex waters of international one-upmanship to establish their nascent independent territories into positions of respect. Ataturk did this by having the humiliating Treaty of Sevres, scrapped and Nehru hoisted India to the enviable position of the leader of the NAM (Non-Aligned Movement).

Both men encouraged the scientific temper and set their respective countries on the path of western style democracy. India and Turkey are both Constitutionally Laic, Socialist Republics, with elected governments at the helm of affairs. Both states have successfully produced indomitable women heads of state; Indira Gandhi in India, and Tancu Ciller in Turkey.

However, barring the temper of the Constitutions of the two countries, there have been dichotomies which cannot be missed. The Indian state has an army that has never displayed an interest in the legislative functioning of its polity, maintaining a respectful distance from political upheavals. On the other hand, the Turkish military has tried to usurp power multiple times, in that country. The first three times it attempted to do so, it successfully affected a regime change. The years were 1960, 1971, and 1980. A fourth rumbling from the uniformed men was heard in 2016, but was immediately suppressed and extinguished by Prime Minister Recep Tayyip Erdogan. Some insiders and whistle blowers have claimed, that the coup was an eyewash, that was perpetrated by Erdogan’s moles present within the military. After all, the only person who benefitted from the crackdowns, was Erdogan himself.

India’s north-western neighbour, has been a major roadblock on the path to India-Turkey relations. Right from its inception, Pakistan has been a firm ally of Turkey. The roots of this friendship go deep down and can be found embedded in the Khilafat movement of the sub-continent during British times, when Indian Muslims had banded together to oppose the abdication of the last Turkish Sultan, and with him, the position of the Caliph of Islam. Turkey supports Pakistan’s stance on Kashmir, something that has always troubled the Indian upper echelons, which wants to steer the relationship between their nation and Turkey, ahead.

Where Kemalism had impressed itself upon the elite masses of Turkey, with its accent on westernization, President Erdogan has managed to ride the votebank of the working class, with his emphasis on political Islam. He, unlike his other civilian predecessors, has not only managed to hold on to his position, but has also been successful in reinforcing it and becoming the master of all he surveys.

Terrorism is yet another problem between the two countries. VOA

Turkey remained unaffected by the Arab Spring revolts that have shaken the Middle East since the April of 2011, with the latest victims being Yemen and Iran, which is a testament to its stability. But, as India has watched from the sidelines, this crucial NATO (North Atlantic Treaty Organization) member, has shown its back to democracy by embracing a new shade of totalitarianism in the form of the Turkish President’s office, stifled the opposition, dissolved protests from dissidents, and has sought to deal with the Kurdish problem in a much harsher way than previous governments.

Turkey being Asia’s gateway to Europe, a member of the OIC (Organization of Islamic Cooperation), and a developed nation by many estimates, is crucial to India as not only an economic partner, but also a comrade among the fraternity of the Islamic states, with whom maintaining good relations is vital to India’s interests. During the Cold War, Indo-Turkish bonding had been left in suspended animation due to a conflict of interests; as India was a founding member of the NAM (Non-Aligned Movement), while Turkey was firmly in the Allied Camp, in the Western created and controlled NATO setup.

In the 21st century, India and Turkey have produced two unexpectedly hawkish point men, who seem to share a warm personal rapport with each-other. While India’s Prime Minister Modi, started out in life as a tea seller, Turkey’s Erdogan used to sell lemonade at a train station. Born and raised in humble circumstances, the two men have shown some resolve in bettering their bilateral ties. The year that Modi was indicted for his indifference to the carnage of Gujarat’s Muslims – 2002 – was also the same year that Recep Tayyip Erdogan made himself visible on the radar of Turkish politics.

Also Read: How a young Astronomer from Turkey turned into an Islamic State Fighter

Despite the co-incidental sweet spot though, India and Turkey are unable to capitalize on the opportunities afforded to each-other. Among the thorny issues that need to be tackled, are:

  1. Trade
  2. Kashmir
  3.  FethullahGulen
  4. Terrorism

1.Trade between India and Turkey, is to the tune of 6.4 billion, but India accounts for a much smaller percentage of Turkish imports than other countries, especially those from within the European Union, from whom Turkey buys goods. There is an enormous potential in investing in infrastructure via construction, as Turkey can provide its assistance to India over the matter.

2. On the Kashmir front, Turkey currently favours Pakistan’s stand, though not openly discouraging India. As an ombudsman in the OIC (Organization of Islamic Cooperation), it is imperative for India, to get Turkey on board over Kashmir and make that country sympathetic to our stand on the issue.

3. FethullahGulen is a spiritual Sufi Turkish leader, who presently lives in exile in the United States. He used to be a formidable political figure in the power corridors of Ankara, and was a close aide of President Erdogan. A one-time imam in Turkey, Mr. Gulen was an associate of Erdogan and his AKP (Justice and Development Party) and continues to preside over an empire of charitable institutions that provide education and low-cost housing to the needy, globally. Many Gulenist institutions function in India and have never caused a friction with the Indian state. However, during President Erdogan’s last Indian visit, which took place on the 1st of May 2017, he had insisted that India close down all Gulenist outlets, as they were instruments of sedition against his government. India refused to do so and looked upon the directive as amounting to interfering with our sovereignty, since any such decision could only be taken by our own authorities. Fethullah Gulen was accused of masterminding the military coup that took place in Turkey in the July of 2016, albeit without sufficient evidence. The coup itself, and the crackdown on it, was the bloodiest in the history of Turkey, but for the very first time, it was successfully contained by the elected government of President Recep Tayyip Erdogan. Spiritually and philosophically, Mr. Gulen’s views are more feminist and reconciliatory than the pro-hardline views held by Erdogan.

President Erdogan of Turkey.Wikimedia Commons

4. During the day long meeting between President Erdogan and Prime Minister Modi, the former pledged full support to India in its fight against terrorism, but cherry picked on the issue. Erdogan’s primary concern was to help India in our war against the Naxalites, which is a Left-Wing secessionist movement in this country. As an Islamist Right Winger, the Turkish President’s anti-Naxalite stand was predictable. However, he evinced no particular interest in the incidents of cross-border terrorism that India has had to suffer. Pakistan and Turkey are close international allies, especially since Pakistan is the world’s only nation that supports the Turkish created entity of the TRNC (Turkish Republic of Northern Cyprus). Turkey has suffered numerous terrorist attacks ever since the inception of the Turkish Republic in 1923, that were carried out by the PKK, an outlawed, armed Kurdish, political resistance group.

The reason why Turkey is important to India, is due to the reality, that Turkey is West Asia’s most important state, geographically, politically, and militarily. Situated at the crossroads of Asia and Europe, this much-misunderstood country, has been knocking on the doors of the EU (European Union) and if it resolves its Human Rights record pertaining to the Kurds, and the Ottoman Genocide, it might very well become the only Asian nation to be an EU member state. As a leading member of the OIC (Organization of Islamic Cooperation), Turkey’s support to India is vital for the latter to gain traction within the community of the Muslim world, since currently only some Gulf nations are friendly with us. Turkey is a NATO (North Atlantic Treaty Organization) member, and its military prowess within that body is substantial. It is the only progressive, and secular (though these are increasingly being eroded), developed nation in West Asia, with a stable political climate. India, being the country with the second largest Muslim population, it is imperative, that the two nations develop closer ties and lasting bonds, if they can lessen the distance between themselves.

The land of the Whirling Dervishes, where the compassionate views of Mevlana Jalaluddin Rumi have cast a lasting shadow, is India’s forbidden fruit. It can only be hoped, that political wisdom, farsightedness, and reciprocity, will allow the Indians to lay the foundations of a unique friendship, with the West Asian colossus of Turkey.

Tania is a freelance writer with a Masters in Defence and Strategic Studies who has a wide range of interests.