What Do Consumers Look For In a Lender Today?
In today’s tumultuous economy, borrowing money is becoming increasingly popular as inflation soars, and wages stay stagnant. Between car prices, rent, utilities, and groceries hitting record-breaking prices, loans can help everyday people stay on their feet.
However, when taking out a loan, borrowers have expectations of their lender to make them feel secure. And ultimately, a good experience with a lender will be the most significant determining factor of a borrower returning in the future.
Chief among the demands of consumers today is convenience. Borrowers do not want to jump through hoops to apply for a loan, nor do they care to see options they are unqualified for.
Fortunately, loan management software automates complex processes, allowing lenders to keep track of critical documentation and information.
In today’s digital world, consumers want the ability to apply for loans online. Though real-person interactions are still crucial to borrowers for more complex scenarios, having an online option is non-negotiable.
Not only do borrowers want to have the application process online, but many would also prefer to have the entire experience digitized for accessibility. Consumers want to be able to make their payments on a website or an app and track their payment history and payback progress digitally.
Consumers want to borrow money from lenders who will be loyal to them over the lifetime of their loan. Many younger borrowers dislike seeing people taking out new loans and receiving better interest rates based on age alone, so remain flexible in your process.
To stay competitive, consider reaching out to existing borrowers with new opportunities to refinance and lower their rates. Just make sure you take care of long-time customers while helping out new borrowers.
People looking to borrow money for a mortgage or an auto loan may be enticed by loan incentives. Having motivating factors can help you become more valuable and sought after as a lender.
For instance, a young couple shopping for a home may accept a higher interest rate if the monthly payment can stay lower when combined with their private mortgage insurance.
So, when working with small-loan borrowers unbothered by interest rates, remain flexible with terms to drive satisfaction and trust.
Lenders who know the local area of potential borrowers are more likely to attract customers.
For example, lenders can work in their professional relationships to help move the process along. Say you, as a lender, have a relationship with local realtors and are working with a borrower looking for a space. They may feel more comfortable working with a community of professionals who can vouch for each other.
So, make sure you create credibility in your community and build rapport with local professionals to help borrowers feel more at ease.
Before you go
Because of rising prices, many individuals are looking towards loans to help them stay afloat. However, consumers have an overwhelming number of options when borrowing money.
As a result, remaining competitive with rates and terms is important, but customer service and satisfaction with the experience will make or break a return customer