What’s in Store for the Lending Industry in 2023
With the new year comes an economy that will have profound impacts on the lending industry. While a forecast of a recession is swirling around, it is believed to be mild and short-lived. Most Americans are confident that they will be able to get through it unscathed, and are looking forward to a more positive economic climate this 2023.
A Year to Recover
The financial industry in 2022 was marred with steep inflation and high interest rates that made consumers rethink applying for loans. With mortgage interest rates lowering in December 2022, the future is definitely looking more hopeful.
As far as inflation is concerned, experts agree that it should continue to descend in the coming months.
Demand for Loans May Stay Steady or Increase
With Americans being optimistic about their own financial futures, they may be more likely to borrow money to buy a car or decide that now is a good time to purchase a home after holding off in the last year.
It’s worth noting that Americans under the age of 40 are the most optimistic about their futures. This is important because they may not necessarily go to a bank for a loan or want to talk to a loan officer in person. Instead, they may be more likely to apply for financing online and ask questions through live chats or through social media channels. Therefore, you should seek to expand your online presence to meet these younger consumers where they are.
Although market conditions this year are still uncertain, you can still build your business by taking a proactive approach to retaining and recruiting customers. Taking the time to understand their needs may make it possible to sell products in a timely and profitable manner regardless of what the economy does. It is also important to keep tabs of new trends in Fintech and fraud prevention to ensure success not just in 2023 but in the years to follow.
Contact us to find out how we can help you close loans faster with employment verifications and 4506C income verifications.
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