Smarter Lending, Better Consumer Experiences: Powering Your Digital Channel with Pre-Qualification

This intense focus on digital adoption presents a unique opportunity for forward-thinking lenders. By optimising your online lending solution, you can not only meet evolving consumer demands but also drive significant business growth and profitability. The key to unlocking this potential lies in a powerful, yet often overlooked, stage of the lending journey: pre-qualification.

At Equifax, we understand these market pressures. That's why we're proud to introduce Equifax Pre-Qualify PLUS, an innovative solution meticulously designed to transform your pre-qualification process. It's about empowering you to make smarter lending decisions and deliver the seamless digital consumer experiences that today's market demands.

The Imperative of Digital Transformation in Lending

The shift towards proprietary digital channels in lending is not just a trend; it's a fundamental change in consumer behavior and market dynamics. For many years, traditional channels, particularly mortgage brokers, continued to play a dominant role in loan origination. While brokers continue to be a vital part of the ecosystem, many financial institutions are actively investing in and prioritizing their proprietary digital channels.

Why the renewed focus on direct-to-lender digital solutions? Simply put, it offers a more direct and often more cost-effective path to acquiring new business. By reducing reliance on third-party channels, lenders can gain greater control over the customer journey, enhance profitability by avoiding commission payments, and cultivate deeper, more direct relationships with their customers.

However, moving customers from a broker-centric model to a direct digital one requires a fundamental shift in how lenders engage with potential borrowers. Consumers, accustomed to the ease and perceived transparency offered by brokers, expect a similar, if not superior, experience when interacting directly with a lender online. This means providing clear pricing, simplifying complex processes, and instilling confidence early in the application journey.

This is precisely where the power of an advanced pre-qualification solution comes into play. It bridges the gap between initial interest and a committed application, creating a positive first impression and setting the stage for a successful digital lending experience.

Understanding the Direct-to-Lender Application Workflow

To truly appreciate the transformative impact of Equifax Pre-Qualify PLUS, let's first examine a typical consumer direct-to-lender application workflow and identify the points where pre-qualification can significantly enhance the process.

Imagine a consumer embarking on their lending journey:

1. Consumer visits lender website: A potential borrower arrives on your website, perhaps searching for a mortgage, auto loan, personal loan, or credit card.

2. Lender website provides an indicative rate: Based on initial self-declared information, your website might offer an indicative rate. This rate may be risk-based or based on a preliminary qualification, but it’s often generic or requires the consumer to navigate further into the application.

3. Consumer provides basic identity details and consent: To proceed, the consumer typically enters some basic personal information and grants consent for preliminary checks.

4. Lenders can use Equifax Pre-Qualify PLUS: This is where Equifax Pre-Qualify PLUS enters the picture. At this crucial stage, instead of relying solely on self-declared data or a generic rate, you can leverage the power of a comprehensive pre-qualification solution.

5. Based on the results, the lender can do a formal rate offer and accept or decline the application (pre-qualification): With Equifax Pre-Qualify PLUS, you receive insights that enable you to present a more accurate and personalized rate offer, or even a pre-qualified acceptance or decline, right upfront. This crucial step minimizes uncertainty for the consumer.

6. If a loan is accepted and processed, the lender conducts the ID check: For pre-qualified applications, the process moves smoothly to identity verification.

7. If the ID check is passed, then a pre-filled application form can be sent to the consumer: A significant benefit of advanced pre-qualification is the ability to pre-populate application forms. This reduces manual data entry for the consumer, saving time and reducing friction.

8. Consumers complete the loan application, and liabilities are pre-populated, facilitating the process: The pre-populated form, including liabilities, streamlines the consumer's experience, making the application process remarkably efficient and less prone to errors.

9. Lender conducts Credit Check and completes application assessment: With comprehensive pre-qualification data already in hand, the formal credit check and final assessment become more focused and efficient.

10. Lender makes a final and binding loan decision: The pre-qualification process leads to a faster and more confident final loan approval.

This workflow highlights how a robust pre-qualification step, powered by Equifax, can fundamentally change the digital lending experience for both the lender and the consumer.

Equifax Pre-Qualify PLUS: Your Gateway to Smarter Digital Lending

Equifax Pre-Qualify PLUS is more than just a tool; it's a strategic asset for lenders committed to optimizing their digital channels. It’s designed to transform your pre-qualification process, enabling smarter lending decisions and providing an unparalleled digital consumer experience.

​Check out this Infographic to get a summarised overview on the  Lifecycle. 

For a deeper dive into how our solution can benefit your organisation, contact your Equifax Account Manager today or speak to our Lending specialist to learn more.