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How Automation is Revolutionizing Alternative Lending Services?

By August 12, 2022March 18th, 2024No Comments
Alternative Lending outsourcing automation blog

Access to credit is critical for many businesses and individuals, but it is not always readily available. Traditional banking institutions are often slow to provide loans to customers who lack collateral or credit history. Conversely, alternative lending services have made it easier to access loans.

As per a report, between 2020 and 2025, the alternative lending market can increase by USD 176.15 billion. During this time period, the market’s growth pace will accelerate at a CAGR of 10.18%.  

The financial technology industry is changing rapidly, introducing new financial services daily. Alternative lending service is one of the sectors that has been revolutionized by automation.

What is the role of automation in alternative lending services?

Alternative lenders use automation tools to assist them in processing loans efficiently. The software analyzes information gathered automatically and decides whether to approve loans based on these criteria. 

To increase operational efficiency, alternative lenders can outsource and automate some or all of the application processing to an outsourcing company.  

Clients who use ARDEM’s Alternative Lending Outsourcing Services can save costs and time by outsourcing their loan processing department. Clients may reduce application processing cycle time, increase efficiency, and scale up quickly with us. 

This is how automation can help alternative lending services:

1. Data extraction

Automation helps data analysts efficiently extract raw information from different data sources, such as bank statements, and convert them to usable formats.  

This information can be evaluated and utilized to assess each applicant’s reliability and eligibility for the loan.

2. Data entry

In this stage, information already extracted from documents is transferred into a computer program or database. Using an automated solution saves hours of work and makes data entry much easier and faster to perform.  

ARDEM’s revolutionary approach to data management allows businesses to focus on their core competencies while we handle the rest. Clients can save money and time using our data entry services, which have 99.97% accuracy and quicker cycle times.

3. Data analysis

Data analytics is the science behind extracting meaningful insights from data. It applies statistical techniques to gather, explore, and interpret data for various purposes.  

Alternative lenders can predict applicants’ financial behavior and offer them the services they are most likely to choose through data analysis services.

What are the pros of utilizing automation in alternative lending services?

Some of the pros of utilizing automation are:

1. Cut costs 

Reducing labor costs is what automation does best. Automation lowers the cost of human labor and the time spent on repetitive activities. 

2. Shorten approval processes

Automation also reduces the time it takes lenders to approve loans. Traditional loan companies must process each application individually, whereas automated systems can determine whether applicants meet the criteria and make decisions immediately. 

3. Reduce human error

Another benefit of automation is eliminating the errors and mistakes that occur when humans are involved in the process. Humans make mistakes and cannot perform at the same level as robots.  

Let ARDEM outsourcing solutions aid you in the automation of your lending process! ARDEM Automation ensures that all data fields are extracted quickly and precisely in a fraction of the time it would take to complete manually.


While the obstacles of digital lending reforms are significant, and the road to ultimate success can be treacherous, experience shows that it is adequately repaid in profitability and competitiveness. 

Furthermore, automation decreases errors, removes repetitive activities, and improves accuracy. As a result, it enables enterprises to provide better service to more clients at a lesser cost

ARDEM provides Business Process Outsourcing and Business Process Automation Services to established companies to help them improve operational Efficiency and Reduce Costs.  For more information please reach out to us  at or call us at 908-359-2600.