Welcome to the first edition of Accrued: After Hours 🎙️! This weekly newsletter will provide you a short recap and the main takeaways of each episode from LoanPro’s Accrued podcast series on Fintech Confidential.
Hosted by Tedd Huff and LoanPro’s CMO, Colton Pond , Accrued explores fintech through the lens of lending with insightful conversations from experts and leaders across the industry.
Listen to the Accrued episodes on the following platforms:
Today’s newsletter will cover season 1, episode 1: Modernize or Die! – Beyond Legacy Systems: The Dynamic Shift to a Modern LendTech Core w/ Rhett Roberts.
This season kicks off its very first episode with LoanPro’s very own CEO, Rhett Roberts. Rhett, Tedd, and Colton sit down and discuss the evolution of lending and the journey of personalization, compliance, optimization and modernization through lending technology.
Here’s what went down👂
Rhett, Tedd, and Colton lay out the historical context of lending, tracing it back to the 12th century with the Knights of Templar, who organized the first bank in the western world. Now, the United States hosts over 11,000+ financial institutions ranging from national banks to regional banks and credit unions. With the emergence of fintech in the last decade, the financial industry has evolved quickly with the impact fintech has made for financial innovation.
The trio then hits the main points of personalization, compliance, optimization, and modernization and the impact they have on lending tech. Listen to the episode for specific use cases and case studies explained for each of these points. 👀
Personalization
Personalized financial services are in high demand. As the industry continues to shift more to personalization, lending technology will play a key role in creating a seamless transition.
Compliance
Regulations are constantly changing, and the features of lending technology are key in ensuring that you are staying compliant with the most up-to-date regulations.
Optimization
Tracking in lending has evolved from pen and paper to spreadsheets, which still involves manual effort and costs when taking into account all the moving parts of lending (origination, servicing payments, etc.). Optimization is essential in driving operational efficiency.
Modernization
Legacy infrastructures are out, flexibility is in. This can only be achieved by none other than a modernized system that can connect smoothly to any outside systems via APIs.
What can we take away from these experts? 🧠
📈 Lending has a long history dating back to early civilization, but the rise of fintech in this past decade has made a huge impact on the financial industry and innovation.
🛡️ With constant regulatory changes, financial institutions can use lending technology to ensure that they are staying compliant with the most recent changes.
🚀 Legacy infrastructure is hindering operational efficiency and the flexibility needed for innovation. Modernizing your lending core is the key that unlocks financial innovation and paves the way for personalized financial products that actually meet consumers’ individual needs.
