What is real-time lending?
The phrase real-time lending refers to the ability of a bank or lender to receive a loan application, calculate the risk factors and give a result straight away. The outcome is that the applicant is able to receive almost immediate approval or rejection.
Technological advances have allowed banks to digitize underwriting processes and credit policies.
The advantage of real-time lending for consumer finance is that it allows merchants to be able to implement loans at the point of sale (POS), and additionally, loan applications can be done easily using a mobile device or online. This is a huge development from when the lenders underwriting process took weeks, leaving a consumer waiting.