Credit institutions are finding it increasingly difficult to meet the needs of their customers. They want to be able to complete loans digitally anytime, anywhere. Cooperation with FinTechs enables banks to offer better and more demand-oriented credit processes.
It’s always the same. If you ask German citizens about the most respected professions, then bankers probably have no hope of belonging to the “trustworthy” or “particularly popular” category. On the contrary. Surveys regularly reveal that the finance experts rank bottom in the image ranking. There are mutliple reasons for this. But for one of the main reasons, they can do very little: The products and processes at banks often no longer meet today’s customers’ needs. The result: despite goodwill, the bank advisor is finding it increasingly difficult to meet customers’ wishes. The focus on customer benefit remains by the wayside.
It is particularly drastic when it comes to private loan provision: every year millions of people leave a bank branch without the desired loan. The self-employed, students and temporary employees are particularly often affected. Banks often wrongly reject them because of a too general risk assessment. As a consequence, the bank faces the complete loss of the customer.
FinTechs expand the possibilities of credit supply
In the credit area, FinTechs offer a solution for banks in order to be able to offer more people a loan: By cooperating with a credit marketplace, banks can offer the customer an innovative credit process without their own IT effort. The principle of credit marketplaces is very simple: They bring together pre-checked borrowers of different credit ratings with investors who finance these loans. The market leader auxmoney alone has already financed more than 190,000 loans with a total volume of over one billion dollars. A recipe for success for credit marketplaces: they focus on consistent orientation towards the needs of the customer as the central pillar of their products.
But what needs does the customer have today? Only FinTechs and banks that answer this question satisfactorily deliver real added value and have a clear competitive advantage. Through intensive user research, we were able to identify some key customer needs when taking out a loan: Customers want to be served quickly, flexibly and individually. The e-commerce sector serves as a role model, in which Amazon, in particular, has generated completely new customer expectations for the shopping experience.
Integration of customer needs in the credit process
These findings have been incorporated into the development of a completely digital credit process. The integration of customer needs in the credit process is illustrated by the example of banks that offer auxmoney loans:
The customer requests a loan in the branch or on the website of the cooperating bank. If the bank cannot make its own loan offer, it alternatively offers the customer the auxmoney loan. With the help of the company’s own scoring process, the creditworthiness of the loan seeker is assessed and the loan offer is transmitted in real time. In this way, the customer finds out the individual terms of his loan just a few minutes after making his request.
The customer can then use the video identification process and the digital signature to independently take out the loan at any time and anywhere with his own smartphone, tablet or laptop. Alternatively, the legitimation and contract signature can also be carried out by the bank advisor in the branch.
Better credit process as a tool for customer loyalty
More and more banks are realizing the advantages that such cooperation offers when it comes to lending. Savings banks, cooperative banks and private banks not only expand their own offering with the help of a credit marketplace, but also massively improve the customer orientation of their institution. The bank advisor has no additional effort thanks to a lean, digital process. On the contrary: He is relieved of bureaucratic effort and he has more time for more important tasks.
The customer has a positive experience with a positive result. With the improved credit process, the bank is increasing customer satisfaction and has a new instrument for customer loyalty. The bank advisor becomes the customer’s solution provider. And in doing so, he may even contribute to enhancing the reputation of his profession on a small scale.