Banking & Lending Software: How to Target Millennials
It’s no secret that our world is moving towards overreaching digitalization. People can do almost everything online – book an apartment halfway around the world, get basketball tickets, facetime with foreigners, get quick answers to any question via a smart device, and others. With this shift, people seek fully automated digital services and solutions to perform any task they want from anywhere in the world.
With this movement, banks and lenders have to empower back and front processes to stay afloat. Customers expect a truly high experience level from the entire lending process. Organizations unable to fulfill their conditions lose competitive advantages. Surveys show that at least 47% of loan operations customers prefer to run online. Millennials, the largest generation, for now, expects the financial organization to perform lending tasks quickly. They value convenience and are ready to pay extra for a higher customer experience. As baby boomers and gen X begin to age, the “digitalization” pressure on banks and alternative lenders to drive their services online and make them easy-to-use becomes the number one priority.
Millennials are currently 24 to 40 years old. They turn to lenders for various loans, mostly student, auto, and mortgage ones. As financial institutions note a growing interest in loans among this generation, it’s important for them to adapt the business according to millennials’ wishes.
Statistically, 88% of millennials use online banking and 67% of them opt for mobile-banking only. Considering that there’re over 71 million millennials on earth, nearly 62 million of them are interested in digital services than brick and mortar. Their interest in online services already proves the fact that over 58% of millennials prefer alternative lenders and fintech firms over traditional banks when it comes to credit. So there’s a question — how to attract millennials’ attention.
The most important point in providing fast and effective digital services is cutting-edge online loan management software. Imagine that you can onboard customers, make reports, manage loan operations, grant credits, and collect debts using only one software with automated processes. Different time-draining tasks, including those done manually, can be enhanced with intelligent automation. Using basic modules like credit scoring, notification center, payment and money transfer, CRM, marketplace feature, and others, you can take under control all lending stages. Having all the information at hand, you reduce time spent on each loan application and can grant credits faster — instead of waiting for 7 days, borrowers can receive money on the application day. Besides, online lending software reduces operating expenses and lowers delinquency thanks to improved decision-making processes.
Digital lending is all about understanding customer behavior and experience. A comprehensive bank lending software can improve customer engagement through a personalized approach. In addition to core banking functionality, the software can be integrated with an unlimited amount of tools and solutions, which will attract the attention of millennials and other denegations as well. Integrate your platform with scoring providers to make decisions within seconds, add client business environment, use accounting and BI solutions, provide multiple payment systems. Operating, for example, in the U.S. and Canada, you’d better integrate PayPal and eWallets with your solution. While targeting Germany and other European countries, it’s better to provide Amazon Payments. Hence, you can improve software and make your bank lending services the most demanded among borrowers.
A functional software based on automatization and customer experience improvement is a key way to win over millennials. Since the digitalization revolution is at its peak, the main goal of SME lenders and credit unions is to outperform competitors and follow the trend. With top-notch software, businesses rest assured that their services are in demand.