Digital lending vs Great Resignation: A battle strategy

FinBox Team   /    Team    /    2022-01-21

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FinTech today is all about customer experience. Players in the market are in a race to delight customers, and the prize is there for the taking — competitive advantage that translates into business value. In fact, customer experience, which has long been the prerogative of B2C players, is now desired from and delivered by B2B digital lenders as well.

It’s safe to say that the relentless efforts of FinTechs have paid off, and quality customer experience is now easy to come by. While this can be disarming, digital lenders must be warned that the next dragon to slay lurks much closer to home than they would imagine. 

Employee-centricity in tech and organisational decisions is slowly becoming the “it” factor that will differentiate digital lenders from their competitors.

According to McKinsey research spanning 10 transformation initiatives, people and talent-centric strategies were found to deliver the highest value. However, they were least likely to be pursued by companies that instead favour customer experience, expanding IT architecture and improving data and analytics.

Fostering employee centricity in digital lending

Employee-facing digitization

The cardinal rule governing digital lending today is to make credit available to as many borrowers as easily as possible. Simply optimising customer-facing technology isn’t enough. The people hired to process applications, oversee underwriting and disburse loans must be equipped with the right technology to make their work more streamlined.

Lending has traditionally relied on human touchpoints. The overwhelming focus on customer experience often neglects those with whom borrowers actually get in touch — the employees. But as the anatomy of the conventional workplace is redrawn by the COVID-19 pandemic, professionals working in digital lending have come to expect a similar experience at work. After all, they are the alter egos of customers.

A study conducted by Samsung showed that 69% of employees in the financial services sector would quit their job in the absence of agile and mobile technology. With the Great Resignation looming in the background, these numbers give ample reason to worry.

Read our blog on the use of AI/ML in delivering business value.

Inculcate employee engagement & experience

Employees seek more than promotions and pay checks from their jobs. Just as customers, employees value the experience derived from their workplaces and the satisfaction of building a career. By fostering a sense of purpose and value, and providing a psychological safety net, lenders can engage with their employees in a way that creates significant business dividends.

Personalise growth: This entails breaking away from career ladder models of traditional lending that require all employees to follow a predefined upward trajectory. Instead, they should be allowed to carve their path to success with individual values and goals in mind.

Define behavioural competencies: Lenders should attract only the talent they are looking for, and keep reinstating those values once a candidate is hired. Innovation, autonomy and self-motivation are highly desired in employees.

Employee experience at FinBox

At FinBox, we value collaboration, ownership and customer centricity in our work. Our organisational structure and company culture are geared towards upholding these values.

Our organisation is composed of highly cross-functional teams of tech experts, allowing them to get a taste of a number of roles and projects. Our best-fit over force-fit approach pushes employees to break routine and get out of their comfort zones with the singular goal of delivering quality customer experience. 

In fact, our hiring decisions are not informed by narrow-minded analyses of a candidate’s expertise in niche areas like specific programming languages or prior industry knowledge. We are more concerned with potential and the ability to learn the ropes. This has allowed us to maximise business value while operating with lean, nimble teams.

To sum up

Employee experience will become the next frontier for digital lenders. Already, studies have shown that companies with higher levels of employee engagement were twice as innovative as laggards. The net promoter score enjoyed by these companies was also double that of their competitors. The overall profitability derived from customer experience was 25% higher.

Cultivating a good employee experience is as much about offering a diverse and stimulating work environment as it is about easing complex workflows. It can be a weathervane for customer experience and overall organisational performance.