From browsing to purchase, to post purchase customer service: modern consumers have come to expect a fully personalized customer journey. Customer Experience (CX) reigns supreme in the banking world. The retail lending landscape should be no exception.
Delivering a successful customer journey requires a mix of competencies and activities from technology implementations to rethinking processes. In reality, -among other challenges- many banks and financial institutions still have a paper-based retail loan origination process. This means customer acquisition and servicing costs are high, due to slow turnaround times and an increased risk of human errors during manual processing. For your customers and employees, the result is frustrating delays and a poor experience.
Financial institutions are currently engaged in a race to put this right. They are increasingly becoming more aware of the fact that loan origination process presents a pivotal opportunity to connect with a customer and build a relationship that can last for years. The crowning achievement is digital customer onboarding, automated workflows and paperless document management across the entire retail loan origination process. But, how can this personalized customer journey be achieved in the lending market?
A CRM-based end-to-end retail loan origination solution is one answer - and comes with 9 key benefits
Whether your customers are looking for a home, car or other personal loan or a credit card, a customer-centric retail loan origination solution, such as VeriPark's VeriLoan, provides nine key benefits.
1. CRM increases retail lending sales
An intelligent end-to-end CRM solution is a great sales tool. It streamlines and optimizes the entire sales process: from prospecting and lead capture, to loan qualification and nurturing an on-going customer relationship. This not only reduces the cost of customer acquisition, it also boosts conversions and enables repeat sales.
2. Omni-channel delivery boosts customer engagement
While many of your customers are increasingly likely to apply for a loan via their online or mobile account, others will still prefer to visit one of your branches. This means omni-channel delivery for retail loans is no longer a nice to have. A CRM system, such as Dynamics 365, gives your sales and customer service teams access to your retail loan origination system at the contact center, in your branches or other external locations, using a tablet or phone.
3. Eligibility Calculator reduces acquisition costs
VeriLoan's Eligibility Calculator has pre-defined rules to check customers' eligibility when they apply for loans online. This is an excellent example of how automation saves money by reducing manual processes; it can also improve customer experience with instant pre-approvals.
4. AML and KYC checks help banks enhancing detection with less cost
Optimized and streamlined business processes mean banks can handle automated alerts and case management more effectively. It also ensures you can efficiently comply with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations.
5. Automated checks allow instant loan approval
Using Microsoft Dynamics capabilities, VeriLoan defines a list of pre-approved and fully automated loan checks, from initial calculations and eligibility checks to credit reviews and scoring. Such swift decision- making processes can facilitate pre-approved offers and instant loan approvals.
6. Automated workflows reduce turnaround times
A CRM-based retail loan origination system means fewer paper-based processes; leading to faster, thorough, more responsive loan applications and approvals.
7. Digital processes are more eco-friendly
Migrating from paper-based to digital retail loan origination processes allows financial institutions to be more environmentally friendly. This is an increasingly important aspect of protecting your brand reputation.
8. Single Customer View increases cross-selling
When you have the ability to identify all the accounts and products held by a customer, you can treat that customer as an individual. This improved understanding of a customer's history and lifetime value allows for better targeted cross-selling and up-selling by understanding the needs of the customer. At the same time, an understanding of their potential exposure to debt supports a responsible retail lending process.
9. Next Best Action ensures a personalized customer journey
Gartner's research suggests that, by 2021, 15% of all customer service interactions will be completely handled by AI. This represents a 400% increase from 2017. And, it has profound implications for retail lending. Digital and physical interactions in retail loan origination generate massive amounts of situational data. This presents a unique opportunity for banks to leverage machine learning and the power of AI to predict future events. As well as reducing risk by predicting the loan default probability, contextual insight can create cross-selling and up-selling opportunities by predicting the Next Best Action (such as a personalized offer or product) for individuals at specific points in the customer lifecycle and capturing the need before the customer is aware of it. Amazing, isn't it?
VeriPark's VeriLoan is a powerful and easy to deploy digital loan origination solution. It allows financial institutions to make fast, consistent and cost effective loan decisions within predefined risk margins. It also provides your customers with an engaging, personalized experience.
Would you like to find out more? If so, get in touch with us!