The ability to lend and borrow money is a crucial aspect of daily life for virtually everyone. Loans are used for big purchases like cars and homes, new business ventures, educational opportunities, and much more. As technology continues to accelerate and become more comprehensive, the borrower experience has grown more competitive than ever. A poor experience for a potential borrower could mean poor customer retention and stagnant client growth. We’ve put together 3 ways your company can improve the borrower experience.
Take Advantage of Modern Technology
As the next generation of borrowers begins to emerge, offering current technology will be key. One of the easiest ways to do this is by offering an online application. Convenience has become king, and the ability to complete a loan application from the comfort of one’s home can be a gamechanger. Your clients will appreciate text and email payment reminders so they never forget a payment deadline. A comprehensive mobile app that allows them to check balances or get their questions answered is another major plus.
Offer a Variety of Payment Options
If your company doesn’t offer an online payment option, you may already be losing business. Likewise, it remains just as important to offer more dated payment options such as paying over the phone or paying in person through cash or check. Offering options allows you to accommodate every potential borrower’s preference.
Be Straightforward with Information
Lack of clarity has long been a source of frustration for borrowers, and a frustrated borrower is unlikely to return. Your team should strive to educate your customers whenever possible so they have a clear understanding of their loan. You should also discourage the use of industry jargon that borrowers are unlikely to understand. From payment plans to interest rates, be open and honest.
By implementing these 3 strategies, your lending company will be poised to both gain and retain more clients than ever. There’s no better time than right now to begin taking steps to modernize and improve your borrower experience.