DigitaI Lending - Commercial Banking Transformation

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[...] This results in lower interest rates for borrowers and higher profit margins for lenders. SoFi example Benefits of implementing digital lending Increased accessibility to financial services Faster processing of loan applications Reducing costs for lenders and borrowers Reducing the risks of fraud and default Reducing the risks of fraud Digital lending uses advanced technologies and default to assess credit risks and prevent fraud, reducing non-performing loans Online lending platforms can quickly evaluate borrowers' repayment capacity using algorithms based on credit history, income, and expenses These platforms can monitor loan repayments in real-time and quickly detect any repayment issues, reducing the risk of default Example of LendingClub Different types of digital lending Peer-to-peer lending Crowdlending Online lending platforms Online banking Crowdlending A platform specialising in participatory lending analyses borrowers' files and determines their ability to repay a business loan. [...]

[...] Practical cases and examples Q1 Online lending platforms Practical cases and examples Q2 Online banks Practical cases and examples Q3 Crowfunding companies In conclusion Advantages : accessibility, speed, cost reduction, reducing the risk of fraud and non-repayment Significant challenges and risks : security and data protection, credit risks for lenders and lack of regulation Digital lending : important role in financial inclusion in the future through the use of advanced technologies such as artificial intelligence and blockchain. Bibliography "The Future of Lending: Digital Platforms, Big Data, and Genetic Algorithms" de Rafael La Porta, Florencio Lopez-de-Silanes, and Andrei Shleifer. Journal of Financial Intermediation, Volume 27, January 2016, Pages 1-31. "Digital Lending Platforms: Fintech Innovation and Financial Inclusion" de Noelia Cámara and Emilio Ontiveros. Journal of Financial Perspectives, Volume Issue "Digital Lending and Financial Inclusion: A Review" de Chandra Shekhar Bhatnagar and Kanika T. Bhal. Journal of Financial Services Marketing, Volume 23, Issue September 2018, Pages 157167. [...]

[...] Different types of digital lending Peer-to-peer lending Crowdlending Online lending platforms Online banking Assess the creditworthiness of borrowers Offer types of loans Run by online finance companies Online lending platforms Different types of digital lending Peer-to-peer lending Crowdlending Online lending platforms Online banking Online banking Similar to online lending platforms Online banks can offer personal loans, loans for the purchase of consumer goods, small business loans, home loans and other. Challenge and risks : What are the limits ? Security and data protection risks LendingClub in 2016 Credit risks for lenders Lack of regulation and supervision Bank for International Settlements in 2019 Security and data protection risks Digital lending faces security and data protection risks. Online lending platforms store sensitive financial and personal information, which can be targeted by hackers. [...]

[...] Challenge and risks : What are the limits ? Security and data protection risks LendingClub in 2016 Credit risks for lenders Lack of regulation and supervision Bank for International Settlements in 2019 Credit risks for lenders Online lending platforms pose significant credit risks for lenders due to challenges in evaluating borrowers' creditworthiness, including limited credit data and non-existent financial histories. Additionally, online lending platforms often have more relaxed underwriting policies than traditional lenders, leading to a higher risk of non-performing loans. [...]

[...] "Digital Lending in Emerging Markets: A Case Study of India" de Nidhi Singh and Ankita Arora. Journal of Emerging Market Finance, Volume 18, Issue December 2019, Pages 310-337. "Digital Lending: A Review and Future Research Agenda" de Anju Sethi, Seema Sharma, and Sheetal Chauhan. [...]