customer experience relevance in alternative lending

As part of a series of finance topics, Holland Fintech organized a round table on customer experience in alternative lending. This type of lending refers to new small and medium sized enterprises to lend outside traditional banking. Examples are crowdsourcing and peer2peer lending. As one of the speakers I shared four customer trends that will impact alternative lending, both from a lender and a borrower point of view.

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Martin Groen presenting at the Holland Fintech meeting

emerging ecosystems

Businesses like WeChat and Libra show us that money will more and more move directly into ecosystems. Those ecosystems are connected to social media, e-commerce and banking, bringing cheap, simple and seamless services to the consumer. It also brings opportunities for peer2peer lending and crowdsourcing. As financial service provider, you need to be open, integrated and have partnerships, to make sure to become a part of the ecosystem.

increasing expectations

What consumers are experiencing in top customer experience brands will raise their expectations from financial service providers. Each touchpoint in the customer journey needs to focus on customer experience. When you don’t meet those expectations, you’re customer will move to your competitor.

digital illiteracy

In many regions, consumers are quite digitally and financially illiterate. How are you going to communicate with your customers when they have a hard time understanding the channel or the topic? Personalization, just-in-time, visualization and relevance helps. So can the use of platforms your customer understands, like Facebook and WhatsApp.

every touchpoint counts

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"self" control

Consumers have an increasing need to have control over their personal data and over their financial situation. Financial products are now siloed. Mortgages, pension funds and loans are not interconnected. There is a need to connect them to have more say over financial wellbeing, using all funds. “Self” is between quotation marks as control can be delegated to a smart, proactive assistant.

The conclusion: financial service providers need to evolve with their customer’s needs. It’s not enough to focus solely on the financial product or a low interest rate. The way providers serve their customers is becoming a unique buying reason.

a sense of control matters most