Customer experience (CX) now reigns supreme in the lending industry. This has been proven beyond doubt by new entrants who managed to breach banks’ historic moat solely through a compelling customer experience.
According to McKinsey, CX focus and digital transformation practices drive customer satisfaction up to 30% and revenue up to 50%. It’s therefore no surprise that banks and brands alike have jumped on the digital lending bandwagon. In India alone, the value of digital lending rose from $33 billion in FY15 to $150 billion in FY20 and is projected to reach $350 billion by FY23.
However, just because more and more players have been offering digital loan services, it does not mean that they have mastered the CX game. This is because lending as a business, whether offline or online, is a hugely complicated activity to execute on.
Lenders and platforms should be able to seamlessly align their frontline business, operations, risk and risk policies, credit decisioning and analytics, and most importantly the IT systems and data that plugs the whole thing together.
Even though Technology Service Providers have streamlined the journey considerably, manual intervention is still required in many places; for eg; assigning a case to the sales team if additional documents are needed or assigning cases to different underwriters based on the loan value, etc.
Orchestration is painful if you have to switch between LMS (Loan Management System), MIS (Management Information System) and CRM (Customer Relationship Management).
Having it all in one place does three things;
Reduces turnaround time for the lender
Increases user (lender) adoption of the LMS solution
Builds lock-in for your product
Banks and platforms that embraced the embedded finance revolution now sit on a mountain of data. And this mountain only gets bigger as more and more loans get disbursed. But now the challenge is how to effectively take advantage of this data. This is where loan dashboards shine!
We at FinBox, help our clients (both lenders and platforms) harness this data to make meaningful decisions and optimise their tactics as well as strategy. The key is to organise, analyse, and present data in a way that lets even non-IT professionals gain insight and take action.
We facilitate a full view of your entire loan portfolio across platforms, at any point in time. This makes reporting and monitoring a piece of cake, wherein teams in the lender organisation can have authenticated access to the status of loans at various stages of the digital lending pipeline.
All information pertaining to a customer is stored in a systematic, organised manner, facilitating easy approval of pending loan applications.
Platform dashboard (Created using dummy data)
In addition to a granular view into every borrower, our platform dashboard also provides easy-to-understand visualisations that help understand the health and composition of loan portfolios.
We build keeping in mind the need for an integrated approach to operations management. From offering a full view of the entire loan application funnel on one screen to facilitating tracking of conversions and drop offs across channels and partners, we build for operational efficiency.
Having said that, not everything can be automated. So, we integrate workflows for the operations and credit teams to manually move a case around, or even manually underwrite and review files, if needed. We provide integrated communication support to reach out to the customer for personal discussions over telephone and video. What’s more, we make it easier for teams to onboard non-tech savvy customers with our integrated copilot tool that assists customers with their user journeys.
CX without CRM software is making bricks without straw
Even if a lender offers the lowest interest rates on the market, if it fails to provide a speedy and convenient mobile/web experience, it reduces chances of success.
For instance, if you can put a loan offer on the table within minutes and approve loans well within a day at best, and your competitor takes four weeks to do the same, you are likely to get much less price negotiation and price pressure. But to be able to take quick action, say in case of application drop-offs at crucial steps, you need the support of an integrated LMS-CRM solution.
Such an approach has a twin advantage. One, lenders will have insights into every borrower. Two, they can run targeted communication campaigns based on these very insights — whether it is to boost completion rates by nudging borrowers or to improve loan recovery by reaching out to customers on the channel of their preference.