Consumer Choice is important when designing an application process such as the ones in use by personal finance companies. This choice, or selection process, can be analysed in many different ways, but "fast cash" loan companies have looked at the options available to the consumer and the one main factor in choosing a loan company is how quickly can they get their money. Speed of service is important but it is vitally important that the loan companies perform thorough checks to ensure the consumer is choosing the correct product and that their credit history is suitable for the loan product. These checks need to take place within a few seconds - any longer and the customer will have moved to another site that can offer a quicker turnaround. With so many companies offering "fast cash" the consumer is leading the way in determining just how personal finance companies attract and keep their audience until the loan application process is complete.
Marketing the fact that a company has a paperless, or faxless solution, is important to gain market share. As previously mentioned the key factor for the consumer when seeking a small personal loan is how quickly can they receive the loan. Companies that are offering the faxless service are gaining a larger share of the market as the process is much quicker than the traditional method of sending over ID and proof of earnings to the loan company. Electronic credit agreements have now replaced the paper based agreements that once had to be signed "in black ink" and faxed back to the loan company.
Legal systems have recognized that the electronic signing of credit agreements is a legally binding agreement between the consumer and the loan company, enabling the whole process of applying for a loan and being legally committed to the agreement a fast and less time-consuming exercise.
Credit Databases detailing vast amounts of credit history have built up over the years and it is these databases that loan companies use to determine if the consumer is good or bad. The more companies that contribute to these databases will result in an accurate credit scoring method for providing end to end electronic personal finance services. Without these databases there is no underwriting criteria to base the credit decision on and it is these databases that play a crucial part in the new faxless services that we are seeing advertised today.
Typical faxless loan services will be offered by Internet based companies and will involve the consumer completing an online web application form. These details are then submitted to a central processing system that will use various databases to check for ID verification, credit history, employment history and any known defaults or charge offs that would alert the loan company to possibly rejecting the loan application.
In summary, it has taken a few years for the correct technology to arrive and for the databases to evolve that provide personal loan companies the ability to provide faxless or paperless solutions. Now that this technology is available, it has enabled a fast efficient product to be offered to the market that has generated billions of dollars in revenue.
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