Leaving the Digital Box

Leaving the Digital Box

Many businesses look upon the digital world as an entrance into the unknown. As a businessman, you end up waiting, not clearly understanding what is available to transact business online. You feel boxed in. You look left, right, there’s no door, you’re convinced that you are in a digital box. The first step in leaving the box, you must think beyond the walls, you must think outside the box. The online digital world has no boundaries, you need a technology partner who understands.

Creative business ideas typically evolve through a framework of technology impacting your business, deepening customer relations and most importantly increasing revenues. Undoubtedly that framework of technology will include the internet. Our news, research, information, libraries, bill paying, buying, selling and lending are all online. Business is being pushed, pulled and mandated to be online. Today, when individuals discuss doing business, they mean now. Business success and failure is measured through the prism of instant gratification. “If you can’t give me what I want ‘now,’ I’ll go somewhere else.” For a financial institution to compete, they must think outside the digital box. Making loans and managing risk must become an online transaction.

Is your financial institution ready to step out of the digital box and into the future? With the new IFRS 9 regulations for credit risk management it will be necessary, for each financial institution, to determine probability of default, for each loan, preferably prior to approval. This puts each financial institution in position to approve loans online, with the right technology. Technology that will facilitate online business through online lending, expanding a financial institution’s market reach, attracting millennial, Gen Z customers and new business clients. All this is due to the ability to predetermine, for every loan, the probability of default and any expected loss, automatically and instantly based on your credit risk model.

Digital Touchpoint Technology

We’ve taken a mandated regulation and used it as a foundation to build upon. Opening the opportunity to think outside the box. We’ve previously discussed the effects of business trends on technology; for example; ATM’s, online bill paying, etc., are past trends. The latest trend is the digital touchpoint. With physical interaction diminishing, businesses will need the ability to have interaction, with their customers, via online interaction without one on one communications. Unlike a branch environment online interaction cannot afford to have waiting lines. eCM Global has responded to this trend by developing new and dynamic online digital touchpoints, establishing multiple points of potential interaction between you and your customers, both for service and revenue.

As the online world impinges on the physical presence of our interactions, business must counter with an online presence or become extinct. As such, if a financial institution is to fulfill its commitment to its community it must be able to be part of the online digital world. Being able to offer online services ensures that those you serve will be involved with your financial institution and therefore more apt to turn to your organization for their financial requirements. The more involved you are with your customers’ transactions the more likely you will be involved with their financial needs. Creating an environment where your customers can execute their personal business and your organization can serve them without any physical presence, is both a revenue producer and good customer service.

Conclusion

IFRS 9, a problem or an opportunity? Yes, with the right technology it is an opportunity. It will take time but it will open the way to new and exciting possibilities. Making the step to begin the process of complying with IFRS 9 is making a step into the future. As you search for the right solution, understand that credit risk management needs to be integrated within your loan process, to give you maximum impact on your business. Having a dynamic solution for probability of default and expected loss integrated within your loan approval process will expand your market share, attract new customers and improve your service. How do we know? Because we have the solution for IFRS 9 credit risk and have it integrated to new and exciting business solutions.