How Digitalization Can Benefit Your Lending Institution
If 2020 has shown us anything, it is how important it is to be able to communicate digitally. Most companies have instituted work from home policies, and even as things begin to open back up, many people are choosing to maintain social distance recommendations.
Record numbers of people are jumping on Zoom calls either to socialize or for business and retailers are finding ways to move most of their inventory online. There has never been a better time for lending institutions to follow suit and adopt digitalization.
More Accurate Record Keeping
Paper records have been a useful method of archiving information for centuries – but it isn’t the safest or most secure. It can also be difficult to record every single transaction or change that happens within an account.
With digital banking and lending, both the lender and the cardmember or client are responsible for updating their own records. They can quickly and easily be pulled up, which allows the lending institution to make updates to the account when necessary.
Moreover, digitalization is often incredibly secure, offering end-to-end encryption and ways to safely enter confidential information. Some software even allows you to track every keystroke so you never miss critical information.
Reducing costs allows you to scale your organization and cut your FTE. When your lending institution adopts digitalization, its needs change. You will likely require fewer full-time employees with feet on the ground. Alternately, if you prefer to maintain the entire staff, your staff will have the capacity to help more people in a shorter period.
Ultimately, you can use these funds in a few different ways. One place that you can reallocate them is to your cardmembers, reducing charges and fees. This move can be great for retaining existing cardmembers and a powerful marketing tool for bringing in new ones.
Improved Convenience and Experience for Cardmembers
In today’s world, people expect quick, personalized service. Working face-to-face with cardmembers and clients isn’t the only way to achieve this anymore. With digitalization for lenders, your organization can easily collect data from cardmembers that will help you individualize the lending process.
Moreover, being able to handle everything online means that cardmembers and clients don’t have to leave the comfort of their own homes or worry about buying stamps and envelopes to pay on their loans or credit cards. All they have to do is sign in online and navigate the online portal.
For cardmembers who are delinquent or foresee issues paying due to the increased default risk from coronavirus, digitalization may be even more important. It gives your organization an extra touchpoint of communication with them and provides them a place to get the information they need to get back on track.
Through Peregrin’s credit counseling agency (CCA) customer referral management solution, you can help them get back in good standing. For the cardmembers that might need a little more help, we provide a fully digitalized debt management plan (DMP) process that integrates directly with CCAs.
This process can save your organization time and money while simplifying the whole experience for your cardmembers. If you have questions about how digitalization could help your lending institution, give us a call today at 1-800-231-2493 or contact us on the website.