Rethinking the digital lending business: the path to customer proximity and efficiency in FSI
Blog, 17/06/2025
Digital services are no longer an optional extra, but the key to customer satisfaction - especially in the financial sector. However, many banks are still in the early stages of the digital transformation of their lending business. A current white paper from Sopra Financial Technology shows where the challenges lie and how the change can be successfully mastered.
The status quo: where banks stand in the digital credit process
A survey of decision-makers in German banks, conducted by Sopra Financial Technology, reveals clear weaknesses: Speed, user-friendliness and integration are the biggest construction sites in the digital lending business. It is worth noting that 30% of banks perceive their customers as dissatisfied with the credit process. In particular, slow processing times (58%) and a lack of user-friendliness (56%) are perceived as the biggest weaknesses.
The need for digital offerings is undeniable: 93% of respondents rate digital services as crucial for customer loyalty. Today's customers expect digital processes, transparent communication and quick decisions. 81% of citizens already carry out their banking transactions online, including applying for and managing loans digitally. The status quo: where banks stand in the digital credit process
Focus on challenges and customer needs
The digital transformation of the lending business is failing in many financial institutions due to complex IT structures, a lack of resources, regulatory hurdles and compliance requirements. Customers, on the other hand, are demanding more self-service options (53%) - to submit applications, upload documents or call up the status. Simpler and more intuitive user guidance was requested by 67% of respondents. Focus on challenges and customer needs.
Practical examples: How digital customer proximity succeeds
The white paper uses specific examples to show how financial institutions can meet these requirements:
- BaufiServiceApp for digital back office: The process from the loan decision to disbursement is traditionally paper-heavy and lengthy. The BaufiServiceApp digitizes the back office in real estate financing and shortens the process from weeks to a few days. It enables more efficient processing and offers customers greater clarity, speed and reliability. 83% of decision-makers expect the use of native apps with self-service functions for document management and digital contract processing as standard.
- Lending enhancement for innovative credit solutions: Sopra Financial Technology's Lending Enhancement SaaS initiative enables the development of new lending logics, such as crypto-backed lending with flexible repayment models. The solution remains compliant and can be connected to existing systems. This gives banks the opportunity to reach new target groups and lend digital assets such as cryptocurrencies. The tokenization of risk-weighted assets (RWA) is also considered increasingly relevant by 65% of respondents.
Future trends: AI and embedded finance
The future of the lending business will be significantly shaped by two other trends:
- Artificial intelligence (AI): 91% of respondents expect AI to play a significant role in the lending process of the future. AI can reduce human error, speed up processes and better anticipate customer needs - from automated application routes to risk-oriented workflows.
- Embedded finance: More than half of respondents see platforms and ecosystems as a key trend. Embedded finance enables the direct embedding of credit offers in usage contexts, for example in tradesman apps or real estate platforms. The development of new sales channels is rated as crucial for growth by 77% of respondents.
Digital customer proximity is possible
The findings show: A complete digital transformation of the lending business is not only desirable, but necessary. Banks should set three priorities in order to realize digital customer proximity:
- Empower front-ends: Intuitive interfaces for self-service and communication are the basis for a strong customer relationship.
- Modularize the back end: Flexible solutions such as Lending Enhancement make it possible to test innovations without rebuilding the entire banking infrastructure.
- Combining compliance and agility: New products need to be both regulatory compliant and quickly adaptable.
Digital transformation offers enormous opportunities for banks to optimize their processes, open up new markets and sustainably increase customer satisfaction. Deepen your knowledge and discover detailed insights, further practical examples and concrete recommendations for action.
Download our full whitepaper “Rethinking the digital lending business” now and shape the efficient and compliance-safe future of your lending!