Other parts of this series:
- 6 key success factors for credit innovation
- The first key success factor to break-through credit innovation: Improving data quality
- Reshaping customer experience: A necessary step towards credit innovation in digital lending
- Streamlining the instant loan process: A key element for credit innovation in digital lending
Have you ever sat in front of clients annoyed by the long process they had to go through in order to obtain a loan or mortgage? Probably. Making the procedure faster, simpler and more customer-centric is increasingly perceived as critical by many banking players—not only for customer experience, but also to compete with new digital disruptors that are organized to provide a smoother lending process.
I think the importance of this issue demands that, after guiding you through the improvement of data quality, I share with you another key factor of credit innovation: Reshaping customer experience.
So, how can a bank offer a reshaped and improved experience to its clients? First of all, it should aim to reduce the origination phase touch points to one (in line with what some digital lenders have already achieved) and to decrease the “time to yes,” the time for document preparation and the “time to cash” in order to make the process faster. This is not enough, however. There are other main features of this key factor:
Loyalty and rewards
In a constantly connected mobile world, customers want things quickly and easily; they also require an experience tailored to their needs. In order to engage their clients and increase their loyalty, banks should look for rewards programs, such as instant “on-the-go” varieties. Some players already offer the possibility to collect club points for every mortgage payment and they give rewards to the loyal customers.
Nowadays, video conferences are widely employed in the banking system, and their application could be successfully extended to the process of lending. For example, offering prospective mortgage customers the chance to complete an interview with their advisor via video conference would enable the bank to reduce the volume of cancelled appointments and the branch network costs. Some incumbents have already installed video terminals to connect customers with mortgage advisors in a different branch.
Focus on mobile-first design
Digital customers’ expectations are not fully met by mobile versions of online banking applications anymore, but clients demand the simplicity, the time saving and even the entertainment value they receive from their favorite retailer’s mobile app. Some incumbents have taken the first steps in this direction, launching apps to calculate the amount customers can borrow according to their financial situation.
Using customer analytics to drive contextual experiences
Digital customers are all different, and designing a digital bank starts with defining the life journeys for each of the key customer segments. Understanding customers is the foundation for a sustainable competitive advantage in banking. Therefore, institutions in this sector can no longer wait to embrace the power of advanced analytics to gain insights and evaluate opportunities that will improve cross-selling, increase up-selling and enhance customer value.
Today I have shared with you the potential for banks to reshape customer experience. In my next post, I will guide you through another key factor: streamlining the instant loan. Stay tuned!
Other blogs in this series