In a recent study, 81% of consumers said they’re willing to spend more with an organization for a better customer experience. Think about it. Why do so many people choose to get coffee at Starbucks every morning instead of a gas station or drive-thru where it’s likely much cheaper? It’s the experience. You’re greeted by a barista who might already know your order, you have more options, and you’re rewarded for your loyalty through the chain’s reward program.
And, when it comes to lending, experience is now more important to consumers than interest rate. This is great news for community financial institutions – it means dropping rates isn’t the only way to bring in borrowers anymore.
Up to now, lending hasn’t really changed since, well, maybe ever. But that’s no longer the case. We looked at today’s top fintech companies to see what they’re offering when it comes to loans and found that fewer and fewer are only advertising a great rate. Loans are sold as being convenient, flexible, and fast. These fintech providers know that offering a product with features that are differentiated in the eyes of the consumer is the only advantage that matters.
These companies are trying to “fix” banking. According to CB Insights, the global investment in fintech in 2016 was $20 billion. Our industry is changing fast, and community financial institutions need to find a way to stand out.
Community financial institutions now have innovation and consumer-proven power on their side. We designed the Kasasa Loan® to give consumers the lending experience they want today. With a new concept called take-backs™, borrowers can pay ahead to reduce debt, but take that extra back if they need it.
Today, technology allows people to control the temperature at their house remotely from a smartphone or order groceries with the click of a button (more services that consumers are willing to pay extra for!). Why can’t loans be the same? Our research shows that consumers want a loan that gives them the same type of experience they’re used to from other industries: 9 out of 10 consumers preferred the Kasasa Loan to similarly priced conventional loans.*
With its mobile-friendly dashboard, borrowers can manage their debt by seeing the status of their loan in just seconds and clearly see the impact of payment changes before they make them. In fact, 85% of consumers said they would log into their Kasasa Loan dashboard monthly to manage their loan.* (More engaged borrowers leads to significant cross-sell power!)
If you’re ready to give your account holders the first loan created with consumers in mind, contact us today to request a demo of the Kasasa Loan.
*Based on 2017 Kasasa Consumer Research