Entering a bank branch to apply for a loan seems to be a scene from the past. Major banker Lenders reports that around 40 percent of all installment loans are currently being processed online. Virtually the entire preliminary process, from filling in the application form by the customer to approval of the credit by the institution, is digitally processed over the internet. In almost half of the cases, even the signing of the LOA agreement is done online, so that the consumer never physically moves to a Lenders bank branch.
Although exact figures are not yet known for the other large banks in Belgium, it is likely that the number of online settlements of personal loans, car loans, renovation loans and other installment loans will be virtually the same as at Lenders . Lenders , a 1998 merger between Cream Bank and Best Bank, belongs to the group of traditional banks that offered their financial services long before the digital age.
Who can borrow online completely?
The Lenders figures nevertheless deserve a slight nuance. The 16 percent borrowers who received the loan in their account in March 2016 without going to the bank were largely trusted customers of the institution. Customers who have repaid previous LOAs neatly within the schedule. When there is a lack of clarity or doubt at the bank about creditworthiness and / or the repayment discipline, personal contact between the consumer and a credit manager will usually be necessary. For the time being, new customers will at least have to show their faces at one of the bank’s offices when signing the loan agreement.
Changed function of bank branches
The convenience for the consumer to complete a loan application form at home also gives the banks a considerable advantage. Fewer facilities and fewer employees are needed. Former counter staff are now available per region in a bank call center for customers who call them via PC or tablet for a voice or video conversation. For people who still want to (or have to) go to the bank personally to apply for an installment loan, the approximately 320 Lenders bank branches have been working since the afternoon by appointment only in the afternoon.