How Digitalization Can Save Your Lending Institution Money
COVID-19 has put a dent in the bottom line of businesses around the globe, including some banking and lending institutions. Right now, the goal for many is to find ways to save money. While it may seem counterintuitive, digitalization can result in both time and money savings for the lending industry.
Improve Customer Engagement and Outreach
In order to save money, you need to be able to make money. This is much easier to do when you can quickly reach your customers to offer promotions and new services in a way that won’t cost you a fortune. Digitalization gives you a variety of places to advertise.
If you offer an app experience, placing ads for your own institution within the app can be extremely effective. You can even target these ads based on what services your cardmembers are already using as well as any other pertinent information that they have provided you.
Moreover, you can create automated email campaigns that keep your cardmembers in the loop. These emails can be both personalized and targeted, so you know that you’re always reaching the right audience for your offers. After all, your best bet for a sale is to an existing customer or cardmember.
Simplify Payment for Customers
When cardmembers find it easy to pay their debt, they pay it more often. Options are critical when it comes to payment opportunities. Adding in a few different ways to pay virtually can decrease defaults on accounts.
Try offering in-app and web browser payments using a secure portal. Not only will this make it easier for people to handle payments, it can also give you the opportunity to automate monthly payments. Automated payments reduce the chance that your cardmembers will miss due dates and helps keep the cash flow steady.
Streamline Your Processes
Digitalization isn’t just for customer-facing processes. It can improve your processes internally, saving your employees valuable time. Nearly every process that you handle on paper can be made easier by switching it over to digital – and doing so has become even more valuable as more employees than ever before are working from home.
Additionally, any collaborative processes you have can benefit from digitalization. One of the best examples of these processes is the debt management plan (DMP) process.
As the October wave of defaults begins to roll in, your institution is going to want to be prepared to begin offering referrals for credit counseling agencies as well as complying with the DMP process.
While these referrals can sometimes take days to process, digitalizing them and working with a DMP process solutions management company can speed everything up and ensure you receive all of the information you need in one easy-to-manage package.
It also saves your employees time from going back and forth on phone calls with credit counseling agencies. Instead, they can review everything onscreen and submit any questions or issues electronically.
Peregrin’s digital DMP platform can help your lending institution save money, streamline processes, and improve customer service. Give us a call today at 1-800-231-2493 or contact us online for more information.