Close

Choose a country

United KingdomEnglish
South AfricaEnglish
IndiaEnglish
InternationalEnglish

Customers are driving new trends in the lending market

Blog
24th November 2017

One very interesting change in customer behaviour in recent years is that a positive experience in one industry very quickly creates expectation in another. For instance, innovation in the insurance market can easily lead to customers asking why retailers cannot deploy similar ideas to improve their own service.

Recent research by PwC found that this trend applies in the cards and loans function of most financial brands. The trends being introduced to this area are very likely to have originated outside of the banking sector. This is an extremely interesting development from the customer perspective as it means there is a constant focus on innovation and improvement, but for the banks it means they can no longer just watch what their immediate rivals are doing – the next innovation may come from an entirely different industry. The success of a product like Apple Pay is a good example – why didn’t a major bank launch that service?

PwC found four key trends driving change in the consumer lending area of financial services:

  1. Online all the way: it’s mandatory to put the process online. The vast majority of customers expect to now be able to complete the entire process of arranging a loan online. Although human interaction may be essential in some cases, as much of the process as possible should be online.
  2. Keep things quick and simple: forget the long detailed forms and consider how you can simplify the process. If you are asking for a loan from a company where you already have an account then don’t ask the customer to enter their address again – be smart about making the process faster. The decision process in particular needs to be fast – automated if possible.
  3. Reach out to younger borrowers: loans to younger borrowers are often for much smaller amounts and are often paid off early. Be more flexible about amounts and repayment options. Younger borrowers are rarely looking for 30-year fixed rate loans.
  4. Cross-selling works: customers are highly likely to purchase new products if they are advised about the new product as a response to a question – so the interaction is natural and the agent response is advisory. If the customer is guided to a new product as a solution then it doesn’t feel like a sales process.

It’s interesting to note that PwC is saying these are the four key trends in the loans market, yet none of these trends could be described as specifically related to the financial services industry. All these trends relate to changing customer expectations, changing customer behaviour, and changes in the way that customers communicate. Ignore these changes in customer behaviour at your peril.

Are these lending trends really all being driven by customers today? Let me know what you think about the PwC observations by leaving a comment here, or get in touch on LinkedIn.


Leave a Reply

Your email address will not be published.Required fields are marked *


Helen Murray
Article by: Helen Murray

News & Insights

Recommended for you
Solution Designer
Service Provider
Technology Enabler
Blog
[Fashion] Take advantage of the “Made in Spain” boom

In recent years, the "Made in Spain" tag-line has positioned itself like never before in the fashion footwear area. It has become a "brand" associated with comfort, quality and design, with excellent value for money. A recognition that opens the doors to footwear firms when entering the most demanding markets. One of them is the United States. A complicated market due to its size, payment...

News
Webhelp Launches New Derby Site

Webhelp UK, one of the country’s leading customer experience and business process outsourcers (BPO), has proudly launched a new site in Derby. It was officially opened on 8th October 2018, at an event attended by the Deputy Mayor for Derby, Councillor Frank Harwood. The new site has three main...

News
Webhelp nominated for Eighteen Awards in Customer Experience and HR

An exciting Awards season lies ahead for leading global Customer Experience (CX) and Business Process Outsourcing (BPO) expert, Webhelp, which has been named as a finalist eighteen times across five different awards programmes. Firstly, Webhelp has been recognised by the UK Customer Experience...

Whitepaper
B2B Marketplaces are blossoming

Following our publication last year of " The Spring of B2B Marketplaces ": it is time to look back and to answer these questions: has there been some movement in the market? Have B2B players evolved in their marketplace business models? Is launching a new market observatory worthwhile? The answers...

Case Studies
Webhelp People Analytics

...

×

Webhelp Cookies Preference Centre

Strictly Necessary Cookies
The website requires the use of cookies for essential functional requirements and these are outlined in the terms and conditions.

Enhanced Functional Cookies
Some features of this website use services provided by third parties websites. These features use cookies to implement their services on this website and may collect data about your visit to help them optimize their functionality. The Webhelp terms and contitions outlines the cookies used by these services.

We have links to social networking such as Twitter, Facebook and LinkedIn.
These websites are third party sites. We do not place cookies on their behalf, and do not have control over the way they collect or use your data.
We encourage you to read more about their policies:
Twitter
LinkedIn
Facebook