Digitally savvy millennials have surpassed baby boomers as the largest demographic taking out loans to buy cars, securing mortgages and building up their credit history with small loans. They're also financing more car purchases than the generation that preceded them.
For consumer lenders and creditors, this presents new opportunities — and those who can most effectively meet the needs of this new generation of customers on the digital playing field will be best positioned for the future. Winning and sustaining their business means offering a wider variety of lending products and backing it up with high-efficiency, digitally powered, personalized and responsive service.
In other words, it’s more important than ever for consumer lenders and creditors to up their digital interaction capabilities — for their teams and their customers — if they want to stay competitive, grow loan volume, increase dollars collected and maximize profitability.
Whether you’re a one-branch operation or have hundreds of locations in multiple regions, leveraging digital interaction advancements will help you reduce operational overhead, fuel productivity, and foster the ability to tailor and enhance your customers’ experience.
Steeped in tradition
And yet, it’s very common for consumer lenders and creditors to be working on antiquated, complex legacy systems that are cumbersome and expensive to run. These systems may have numerous capabilities, but they’re often difficult to learn, inefficient to operate and a barrier to customer satisfaction.
With most traditional systems, agents can only see part of the story relating to a customer's history or account. Managing a single account typically involves navigating back and forth between servicing and collections environments, and a lot of time clicking through a labyrinth of screens to look up information, find collateral, search for data or complete a process or transaction. This lack of broad view and transparency is a hindrance to productivity.
It’s time to for these operations to evolve.
Digital advancements are driving big (and welcome) changes
New technology is enabling traditional device-based loan servicing and collections systems to transform — supercharging them with powerful, browser-based capabilities that can efficiently manage thousands of transactions and complex requirements.
The most versatile of these platforms can work with an existing system, or on their own. Either way, it means leaner IT, lower fixed costs and better, digitally-powered service for customers.
As a lender, whether your servicing and collections teams are working with customers in the office, online or over the phone, a “future-ready” servicing and collections platform can reduce costs by 15-35% and ignite productivity with readily accessible information that empowers customer interactions.
Some attributes of a “future-ready” loan servicing and collections platform:
- One-click access to customer account information
- Rapid search capabilities
- Simple information updating
- Easily accessible transaction history and collateral information
- Workflow automation for approvals
- Comprehensive reporting for management
- Built-in auto dialer controls
Key steps to igniting your digital transformation
The benefits of updating, modernizing and leveraging digital capabilities cannot be underestimated. The right loan servicing and collections platform can help you spark digital transformation across your business. Here are two key steps to getting there:
- Implement a loan servicing and collections solution with an open-architecture, web-services framework.
- High-efficiency, browser-based technology that’s easier and faster
- Improved service levels for customers
- Reduced training time and the number of FTEs required to handle loan servicing and collections
- Ability to reassign staff to strategic, higher-value projects
- Work with an experienced solutions partner to handle all or some of your loan servicing and collections functions.
- Gain access to scalable technology-driven teams, advanced service centers and the latest tools to drive performance
- Eliminate the need for physical or virtual servers and infrastructure
- Improve your ability to focus on business growth instead of managing and scaling technology
A leader in digital interactions, Conduent hosts over 10 million consumer loans and leases, manages more than $100 billion in consumer loan assets and has a more than 25-year track record as the engine behind major consumer lending companies. The Conduent Loan Manager platform is digitally transforming loan servicing and collections. Contact us to schedule a live demo of the system, or to learn more.
About the Author
Senior Director, Capital Markets and Consumer FinanceMore Content by Jeff Higdon