Digital and traditional lending- Some comparative issues

Abstract

Digitization is an inevitable trend in the banking and finance industry, which brings great benefits
to banks, customers and the whole economy. Regarding the lending activities, the transformation from
manually to digitally has shorten the lending process, saving time and costs for both borrowers and lenders.
The article uses the method of synthesis, analysis and comparison, based on published studies and reports
on digital lending implementation of a commercial bank in India and Indonesia. This article analyzes the
main advantages of digital lending compare with traditional lending. In which, the digitization contents in
each stage of the lending process is analysed, to show how digitalisation with diffeerent levels, has helped
to improve the lending process. Based on this, the paper suggests some recommendations about defining
context, goals, planning and selecting potential partners, to help Vietnamese commercial banks to develop
toward a full digital lending process