Memo to Lenders: Go Digital or Go Home

The benefits of swapping analog, manual processes for digital ones are obvious.

But that doesn’t mean they don’t bear repeating — especially against a backdrop of fierce demand for streamlined, efficient and customer-friendly financial processes.

“Digital basically upends manual, paper-heavy and operationally cost-intensive processes,” Andrea Moe, vice president of customer success at Amount, told PYMNTS during a conversation for the series “What’s Next in Payments: How Do You Do Digital?”

It’s these processes that have traditionally defined legacy banking systems, Moe added, stressing that adopting digital tools within the financial services space not only enhances operations and customer engagement, but also drives greater profitability.

This shift is especially important as customer expectations increasingly favor speed, convenience and automation in financial services.

“Modern money experiences typically engage younger generations of banking customers,” Moe said.

Revolutionizing Digital Engagement in Lending

Amount’s core offering lies in its loan origination and account opening software solutions. These tools help lenders, from community banks to nonbanking financial institutions, move away from creaking and outdated workflows that result in friction-filled experiences for their customers.

“Part of our role is helping our clients with their own customers by looking at the overall effectiveness of their funnel, of their policies, of the ways that they’re mitigating fraud,” Moe said. “And each of our customers comes to us with some nuance as it relates to their own unique priorities and what’s important. Together, we help them in striking a balance between risks and outcomes.”

This dual focus ensures that lenders can expand their reach and deepen customer relationships without compromising on security or compliance.

“The time is always ripe for disruption, regardless of the segment,” Moe said. “Lenders that typically have relied on in-person relationships and the more traditional modes of application intake, verification and contract signing are also increasingly leaning into digital and automation.”

One of the key insights Moe shared was the shift in digital engagement across different customer groups. While younger generations have long been early adopters of digital financial services, more traditional lenders that have historically relied on in-person relationships are also beginning to try automation and digital processes. The ability to adapt to customer preferences is a critical component of modern banking, and Amount provides the tools necessary to enable that adaptability.

The Digital Transformation Imperative and Role of Data in Measuring Success

As financial institutions move to embrace the adaptability offered by digital platforms, measuring success becomes both a qualitative and quantitative exercise. According to Moe, data plays a crucial role in showing firms where they can achieve the highest return on investment as they digitize.

“Lenders can expand their reach, they can add new households, they can also deepen that wallet share within their existing base of customers, too,” she explained, noting that it’s important to think through “not just the tech, but also the organizational change management that needs to accompany that in order to best facilitate the move from manual to digital.”

Moe pointed out that many lenders miss out on potential revenue because customers abandon online applications. Additionally, fraud losses and penalties from compliance infractions can deplete margins. The marketplace is full of digital solutions like Amount’s that address these pain points in a measurable way.

For example, one of Amount’s clients launched a new consumer loan program and saw that 80% of applications were funded without human intervention. Another client reduced application-to-funding time from two weeks to just 15 minutes, underscoring the operational efficiency gains that digital technology can bring.

In an industry that is rapidly evolving, financial institutions are under increasing pressure to modernize their operations. Looking ahead, Moe expressed excitement about the future of digital lending and Amount’s role in shaping it. The company is focused on continuing to develop innovative solutions, including around artificial intelligence, that drive customer engagement, enhance risk management and deliver superior performance outcomes — all combined with a deep understanding of client needs.

“You’re able to incorporate new technology in a safe and responsible way that drives real efficiencies,” Moe said.