“Companies must focus on their customers”

Kris C. , Group Head of Sales at Aryza Lending Solutions, discusses the current trends in the lending industry and highlights the importance of self-service, automation, and fair treatment of borrowers.

The customer is King. This statement rings true now more than ever before. As the lending industry continues to grow and evolve, companies must find innovative ways to make their processes more efficient.

As a matter of fact: loan applications continue to increase, and banks and other lenders are turning to digitalization to streamline their processes and make quick, agile decisions. However, it is important to remember that the customer should remain at the center of this automation trend to help them make informed decisions quickly.

Certainly, a few years back, there was immense emphasis on recovery in the industry. However, nowadays, companies need a contrasting approach, introspecting on their own role in situations where the customer relationship goes haywire. They need reflecting on whether they could have detected issues beforehand, taken precautionary measures, and offered customers relevant information. Moreover, they should be exploring ways to surmount communication obstacles.

To achieve this, companies should work more closely with their customers through self-service, offering transparent overviews of their finances and allowing for flexibility in payments. Self-service also gives companies the ability to intervene manually if necessary and desired. Using Open Banking data, companies can quickly become aware of potential problems and grant appropriate measures to help their customers.

In a scenario where a customer's income has decreased due to job loss, the company could offer a payment break until the customer secures new employment. This approach has the potential to benefit the customer relationship in the long run. In contrast, if the company insists on the customer paying the agreed repayment amounts despite their inability to pay, this could strain the relationship and even lead to insolvency.

So, identifying trends in payment behavior early on is key. This way, companies can anticipate potential vulnerabilities and make appropriate offers tailored to their customers' needs.

Aryza Lending Solutions recognise the importance of trends like automation, KYC, and Open Banking and offer scalable products that are easy to use and promote self-service. These products enhance customer onboarding, retention, and governance for lenders. With transparent information available 24/7, users can make decisions based on their finances, and automated processes reduce call centre support. As the lending industry continues to grow and evolve, companies that prioritize the customer, invest in digitalization and intelligent software solutions, and treat borrowers fairly will gain a competitive advantage.

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