New technology when combined with automation provides significant potential to improve the loan application and decisioning process. For customers, this means a frictionless, fresh, and friendlier experience. For the lender, you benefit by automating manual or time consuming processes. For your brokers, you can make their engagement with you a clear point of difference. And for your shareholder or member, they benefit from the removal of redundant steps and costs. It can also reduce the need to focus on competing on price or commissions – by delivering an outstanding customer experience.
The speed at which technology and new 'fintechs' is developing is rapid, and so are the expectations of customers who compare lenders with other technology brands. So, what do lenders need to consider in order to surpass their competitors?
- Closely monitor emerging business models and processes: many of which adopt ideas and innovation from other industries and jurisdictions. Don't just consider your immediate competitors for ideas. What are the implications? What could you apply? What lessons can you learn?
- Review how you can streamline the loan application and fulfilment process: make customers stickier, faster, and remove/automate as many steps as you can
- Increase organisational effectiveness: consider how technology can realise straight-through processing: you may be surprised at what is being achieved behind the scenes and is possible
- Enhance the effectiveness and accuracy of all outbound communications: through frequent and targeted communications, notifications and reminders. Is your customer lifecycle communications delivering what you need?
- Reduce processing and distribution cost: minimise manual handling, paper and postage and consider making digital the default option for new products or customers
- Demand insight and expertise from your business partners and providers: if they're not offering this find someone who can!
By integrating these strategies across the customer lifecycle, lenders can deliver an unrivalled customer experience, lower their costs and manage their risk and compliance obligations.