Banks and lenders are currently being tested to see how they can lower customer churn rate. In the era of instant food and grocery delivery, borrowers expect the onboarding and loan disbursal process to be quick and easy. Due to rapid smartphone penetration, there is a growing preference for complete online process rather than physical visit to the lender’s location. It is the driving force for lenders undergoing digital transformation to give the best possible customer experiences.
Over the last few years, digital channel in lending is becoming popular. It was previously dismissed as a ‘buzzword’ with no widely established definition. Still, the bold incursion of tech-first lenders and start-ups have dispelled all market scepticism.
Key drivers for enhancing customer experience in digital lending
Here are some ideas for improving the customer experience and lowering churn:
1. Data Collection Supported By Analytics
Successful firms understand their consumers’ demands and identify possibilities for improvement at an early stage. They accomplish this by collecting continuous feedback at all points of client interaction.
Digital lenders have the advantage of building an integrated database dashboard to capture and track customer movements in each funnel stage. Data analytics is helping businesses learn drawback in their offering and app journey. Hence, better insights enabling digital lenders to offer better customer experience vs traditional incumbents who on relative terms far less insights on how customers behave in different scenarios.
Most financial services firms use customer data to tailor their products while also providing the flexibility and agility to configure lending choices readily.
2. Make Customer Journey Frictionless
Lenders can improve customer satisfaction by reducing unnecessary steps such as uploading large list of documents, completing repetitive steps, etc.
Digital lenders are currently using tech to automate the entire lending process to ensure customers are not moving away from the app to source any additional documents.
We at Pirimid have developed a comprehensive tech ecosystem such as eKYC, ML based underwriting, Account aggregation, e-sign, etc. to enable anyone become a lender without being worried about tech development. Furthermore, quick access to credit profile and access to a wider data point on customer has enabled lenders to offer instant loan to customers, thus improving their overall experience.
Integrating your platform with updated technologies boosts customer satisfaction, retention, and conversion rates. Customer trust is demonstrated via user-friendly design, a coherent domain, and consistent web design.
3. Maintain Uniformity Across All Touchpoints
Modern borrowers expect their lenders to provide an omnichannel experience. People who use digital lending services frequently switch between devices before finishing the activity. Today’s leaders must recognise the value of cross-channel journeys and the need to expand innovative cross-channel integrations.
Furthermore, frictionless digital encounters with near-real-time accountability and continuity across digital and in-person experiences are beneficial. Customers with an entirely seamless multichannel experience have a more prosperous digital lending experience.
4. First Mover in New Technology
The moment has come for lenders to catch up with the latest technologies to capitalise on excellent opportunities to improve their client experience. Enhanced platform security using biometrics and face-match, using predictive data to auto-fill customer form demonstrates how tech enabling lenders to improve client satisfaction. Furthermore, lenders are also using technology to track Early Warning Signals on existing portfolio to manage loans from becoming delinquent.
Customers today have various options which is a major reason for high customer attrition rate for traditional lenders. In the current market, simplified app journeys are seeing better conversions and retention rate than traditional apps. Nowadays, reviews in the Play Store or App Store are a dominant decision driver for customers to download an App. Hence, when building an app, keep usability in mind. Customers like solutions that brings some form of utility in their day-day life.
5. Create A Customized Customer Experience
Digital lenders are using solutions like CRM, analytics, app-events manager, etc. to personalise and segment communications for each customer segment. Personalization is helping lenders appealing better to a large customer segment instead of offering a cookie-cutter solution. This in return improving brand recall and acceptance of customers. These solutions also provide real-time visibility of customer in App, and better decision making and experimentation abilities.
According to HubSpot, 59% of customers choose a personalised banking experience over a quick response when it comes to customer service.
Top growth hacks for digital lenders
1. Flexible devices that use contemporary technology
People have become overly reliant on their smartphones is an understatement. Consumers spent the whole pandemic interacting and transacting digitally. Consumers now expect to interact with financial institutions via their cellphones to accomplish everything from open accounts to borrowing money.
2. When used appropriately, social media is a powerful medium
Social media has developed into more than just a tool for social connection. It has provided a massive platform for lenders to communicate with their consumers and keep them up to date on the latest products. The more human a brand appears to be, the more trustworthy it is. This technique can assist your company in laying the groundwork for great client relationships.
3. Paid advertising should be used to supplement organic efforts
Investing in a paid social media plan might help you reach the right audiences at the right moment. The sophisticated targeting features give you more options for identifying and experimenting with your target clients.
4. Increase your conversions by staying engaged
Getting the word through is only half the battle. A constant engagement with your current and new consumers promotes brand positioning and keeps you at the forefront of their minds anytime they consider online borrowing.
As we enter a brave new era of digital lending, consumer experience will take centre stage in the story of financial empowerment. Lenders who can manage evolving client expectations, develop technical capabilities, and fluctuate market situations intelligently will always be one step ahead of their competition. Lending institutions will be able to focus more on consumer demands as consumer data sources expand year after year.
Pirimid can help your company become more productive and profitable by developing cutting-edge software. AI, powerful TCA, and Data Visualization aren’t the only things you can use to predict bond prices. With R and Shiny, you can make a Banking Chatbot. Let us be your one-stop tech solution provider for your fintech projects! Book a call with us today!