IMPROVING BORROWER LIFETIME VALUE

Lenders are always looking for ways to increase product penetration from their clients/customers. By diversifying the types of revenues from customers portfolio and customer risk profiles are improved. For example by cross selling a trade finance facility to a borrowing customer will improve the risk profile as the revenue type is diversified to include fees apart from interest income.

In most cases the information for such opportunities are not easily available to lenders unless the clients discuss the same. Even when known it is likely that other banks/lenders are already owners of the opportunity or are providing the service.

When these information sources are widened to include business associates such as suppliers, dealers, distributors and service providers who are aware of the client’s business methods this enhances the opportunity for lenders/investors to diversify into their client’s eco space. In this way they also are able to monitor and track the exposure and potentially drive new outcomes for all.

This will mean higher lifetime value for the financier. This will also open up opportunities to enter new customer businesses by considering upstream and downstream industry chains.

Dropdeck offers the opportunity to lenders/investors to identify such situations where they can choose which eco system to enter on account of diversified risk.

Dropdeck not only incentivises stakeholders in the investment/lending supply chain but also widens the choices for the seeker. From an investor/lender POV it diversifies their portfolios and helps gauge new types of risk by bringing in cross border opportunities. Subject to legal regulations and tax regimes this can be a very useful new source for SMEs looking to seize business opportunities and also go global.