Advanced Digital Transaction Management: What Does It Mean and Why is It Important?

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As loan volumes increase and new channels of funding are established, the growing acceptance and demand for advanced digital transaction management (DTM), which includes post-signature asset management, is driving accelerated growth among traditional and non-traditional lenders.

It is critical to enhance and extend digital transaction capabilities to more securely manage and transfer loan agreements as financial assets once completed and signed. To support industry-wide adoption, processes must support best practices to verify and authenticate with transparency for funders, investors, custodians, rating agencies, customers and growing needs.

While traditional lenders have often been slow to react, marketplace lenders are seeking to leverage technology to ensure compliance and that the transactions being purchased are exactly as represented.

As noted in the Aragon Globe™ for Digital Transaction Management, 2016: Transformation Unleashed report, “Advanced DTM involves complex document processes, including, but not limited to, document assembly, routing, integration into other applications, and workflow both upstream and downstream from the decision, approval, or signature.” At eOriginal, we know that eSignature is just a small part of the process and have focused on the development of robust Advanced DTM. As Aragon Research found, financial services and others industries are beginning to recognize this as well.

Investor Interests: Time is Money and Knowledge is Power

Lenders are not the only stakeholder group concerned with process surrounding digital transactions. As the recipients of assets, investors are concerned with integrity and verification of what’s being purchased, as well as speed of execution. Additional points of concern include:

  • Speed to decide and execute quickly and securely with verification
  • Need to have access to digital assets, reporting capabilities
  • Mechanism for enforcement, ability to sell/transfer in a digital format
  • Enable processes so different players in different roles can participate with easy-to-use and strict rights and privileges

Through advanced digital transaction management, investors are looking for the ability to have that verification and accountability that is only available in the digital world and lenders (both traditional and non-traditional) are looking for their piece of the increasing loan volumes.

A Lending Confluence

As noted by eOriginal President and CEO Stephen Bisbee in a recent Lend Academy Podcast, we’re seeing marketplace lending move more into the issues and approach of traditional financial institutions, and seeing traditional institutions purchasing marketplace lending or marketplace lending tools. He believes that the industry is going to start seeing that convergence of what was marketplace lending and traditional lenders all moving to different types of digital lending environments and platforms.

The benefits of adopting advanced digital transaction management have never been stronger, especially since technology enhances confidence and provides unprecedented levels of insight into the documents and data. If your organization has yet to enter the world of digital transactions, the time is now to get started.

Attending Opal Group’s Marketplace Lending & Alternative Finance Summit?

We are looking forward to the opportunity for meaningful dialogue regarding advanced digital transaction management at the upcoming OPAL event. Include us in your itinerary!

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