In an environment marked by a dynamic yet heightened interest rate landscape, lenders are witnessing a decline in consumer appetite for new loans. Faced with this challenge, financial institutions are increasingly turning to strategic tech partnerships to fortify their underwriting portfolios.

Recent research, conducted earlier this year by IntraFi, sheds light on the prevailing sentiments among 597 bank executives. A substantial 78% of respondents anticipated a minimum 25 basis points increase in interest rates by the end of 2023. Furthermore, over 80% of those surveyed foresaw no reduction in interest rates until at least the third quarter of 2024.

Leaders at the forefront of tech-savvy credit unions, mortgage lenders, and financial technology firms are spearheading innovative solutions. These include the integration of "soft check" credit scoring mechanisms and the deployment of artificial intelligence-powered bots to streamline the application review process. As the lending landscape continues to evolve, these tech-driven adaptations are becoming crucial for staying ahead in an ever-changing financial landscape.