Drafting, applying and being approved for loans can be complicated and drawn out processes for consumers and business owners alike. Borrowers must often complete hefty amounts of paperwork before they are approved, and payments disbursed via paper checks can add delays.
Lenders are under more pressure to meet expectations and compete as the demand for instant payouts grow, but delivering faster or instant loan disbursements is easier said than done. Lenders must balance delivering the speed consumers demand while offering stringent authentication measures.
Many lenders are relying on advanced learning technologies like artificial intelligence (AI) and machine learning (ML) to offer instant loan payments without compromising the review process. Such tools are being used to automate the development of risk profiles, identity verification and data analysis — areas that are key to ensuring quick and secure verification before funds are disbursed. However, implementing new technologies can be tricky for banks and lenders equipped with legacy payment infrastructures.