Digitalization of a Credit Institution: Its Impact on Clients' Credit Behavior (International Journal of Innovative Science and Research Technology (IJISRT))
Summary
- The study evaluated fifty (50) clients with active loan accounts in Gubat, Sorsogon to assess the impact of credit institution digitalization on client behavior.p.1
- Overall digitalization was rated moderately evident for loan applications (M = 3.35), while loan disbursement (M = 3.71) and loan repayment (M = 3.81) were evident.p.1
- Backend accounting updates recorded high automation levels, led by automated ledger updates (M = 4.20) and system postings (M = 4.18).p.1
- Online loan application portals were the top preference for initial application intake, selected by 38 respondents (Rank 1).p.1
- All 50 respondents (Rank 1) visited the office in person to sign required vouchers prior to fund release.p.1
- Key qualitative adoption barriers included digital literacy constraints (36%), internet connectivity limitations (24%), and security or trust concerns (20%).p.1
Key insights
- Digitalization in the loan application process was higher for form submissions (M = 3.72) than for contract signing (M = 3.04).p.5
- Backend disbursement procedures such as loan release achieved high automation (M = 4.04), whereas pre-disbursement orientation scored lower (M = 3.28).p.6
- Institutional ledger updates scored highest in the repayment phase (M = 4.20), whereas client counseling received the lowest mean rating (M = 3.16).p.6
- Checking loan eligibility through online portals prior to application was the least frequent application practice (f = 29, Rank 5).p.8
- Mobile payment applications were the most utilized channel for making loan repayments, chosen by 35 respondents (Rank 1).p.9
- Reducing loan delinquency by responding to real-time digital alerts recorded the lowest frequency among repayment patterns (f = 24, Rank 5).p.9
- The institutional action plan establishes a target for at least 80% of participating clients to demonstrate independent digital competency.p.11
Topics and entities
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