Disbursing Loans Needs a Better CX

Couple of weeks back I was in a conversation with my brother-in-law who has closely seen the loans industry in India. The conversation especially focused on personal and home loans.

I was keen to understand loans from the perspective of customer experience. What can be improved?

The conversation was divided into 3 stages:

  1. The process of application needs to improve massively
  2. The overall customer experience pre-disbursement and post-disbursement needs to be overhauled
  3. The ‘stage’ called ‘dream hanging’ — where the customer is waiting to hear back from the disbursement officer/ loan agency/ agent for a (yes/ no)

Each of the stages above has 2 basic fundamentals as foundation:

  1. Ease and simplicity
  2. Access

There has always been a strange kind of stress around taking a loan. Our parents have always suggested living a life free of debt. For the current generation though, credit arises more from the gap that exists between the aspirations and the rising costs of meeting them.

The same CX won’t fit them all

  1. SME loans
  2. Home loans
  3. Personal loans
  4. Education loans
  5. Vehicle loans

The first part of the CX has to be people conditioned to deeply understand the aspirations of the customer and hence create solid interventions with service and the product to ensure the customer has a flawless experience (an experience that he/ she cannot complain about).

The second part is the technology (especially the UX). How easily can a customer move from application of the loan to approval and disbursement will ultimately define the NPS and growth for the company.

A key question that the gentleman asked at this point in the conversation re-shaped my thought process:

You just applied for a car-loan. Would you recommend the place from where you took it to your family members? If yes, will you do it because of the incredible experience OR just because you know this agent well and he sorted out everything for you without much hassles?

My honest answer is the latter. Its simply because of the guy who got me through from application to approval is always available on phone/ whatsapp and that’s why I refer him to other people.

Its this feeling that we have as humans “I know this guy”/ “mai isko jaanta hun, yeh tera kaam kar dega”.

Hope: FinTech companies creating an improved CX!

Its interesting to see new age entrepreneurs improving the overall UX and CX to present the age old products that banks have been offering customers.

Do things that don’t scale!

Its a powerful fact when the Prime Minister of this great nation says “the PostMan is the nerve of India”. He’s possibly the most deeply connected.

While of-course most FinTech companies would leverage all things scale to acquire customers, it will be powerful for them to establish great relationships by engaging customers on-ground. A strong relationship will establish “trust” which is substantial in case of “loan defaults”. Most Indians are conditioned not to break trust. Its their reputation and they are emotionally wired.

A point in case are MFI’s. Micro Finance of-course took off because of an apparent and clear need. It made for a sustained case because communities of people were inspired to fulfil their aspirations and afford to build a better life.

Can a powerful CX and UX impact one of the world’s largest economy in more ways than one?