Consumer credit: From the obstacle course to customer path

Consumer credit: From the obstacle course to customer path

Consumer credit: From the obstacle course to customer path

WHAT ARE THE DIFFICULTIES ENCOUNTERED BY BANKS IN THE PROCESS OF TAKING OUT CONSUMER CREDIT? 

There are numerous difficulties for banking players. How should they capitalize on what already exists in order to transform themselves? How can they automate and orchestrate their systems to build efficient digital paths, as well as simple and intuitive interfaces? In other words, how can they offer a better digital experience?

To achieve this, credit institutions need to review their product range to simplify it, make it part of a « seamless » customer process and accessible across all their digital channels. But simplifying it is often complicated, even if it may seem like a paradox! That’s the challenge here: simplifying by focusing on four dimensions: systems, interface, products and data.

SIMPLIFYING SYSTEMS

The first challenge is to capitalize on existing systems and automate them to design shorter, simpler and more intuitive customer paths. This also means opening up their information systems to the outside world, with PLCs [Programmable Logic Controller], orchestrating and chaining system calls so that they do not have to « redo everything ». The processes automation and their efficiency will enable them to attract new customers in a few minutes. All these efforts are reflected into improved operational efficiency and reduced time-to-market.

SIMPLIFY INTERFACES

The second challenge is to set up an interface (or « touchpoint ») interacting with the paths. This touchpoint must be simple and engaging in order to address players (both salespeople and customers) who are not consumer credit professionals. Simplifying the interface means limiting the amount of data entered, taking photos of supporting documents and text recognition (or « OCR processing »).
Nobel prize winner, Daniel Kahneman, has described the two facets or « characters » that share our minds, governing the way we think and make decisions. « System 1 » is fast, intuitive and emotional while « System 2 » is more reflective and controlled. A simplified touchpoint will allow us to attract customers during their emotional moments (the famous « System 1 »); in a few seconds and with a few clicks, the customer is engaged.

SIMPLIFYING PRODUCTS

Bankers must also review and define simplified products that can be deployed in a digital environment (credit, leasing, hire purchase option, long-term leasing, « three times free payment », etc.). This amounts to exhibiting above all commercial and not technical products.
They also need the right strategy to define and deploy such products quickly in a few days or weeks, when in the past it would have taken several months to do so.

SIMPLIFY DATA ACCESS

Finally, banking players must use meaningful data. Everyone talks about it, of course, but only a few players have formalized a given-oriented strategy. Data is the oil of digital transformation! And like all oil fields, it must be exploited intelligently.
Having the most accurate customer knowledge (« KYC ») allows you to have a finer risk analysis, and therefore better pricing. It is also valuable for boosting sales campaigns, promoting cross-selling and up-selling.

HOW DO WE APPROACH THESE DIFFERENT DIMENSIONS?

Thanks to its low-code Palmyra platform, VERMEG provides answers to the challenges of the consumer credit subscription process and solutions to address the components of an omni-channel strategy.

On the « Systems » side, the platform today exploits the full potential of PLCs to capitalize and cohabit with existing systems. Digital transformation is not a big bang. Processes are automated to reduce time-to-market, create seamless paths, and support trading partners’ strategy. The platform is the driving force of the deployment strategy of the bank’s partner networks and various subsidiaries.

We have worked on the tablet interface to create a simple, engaging and highly intuitive touchpoint for the study and credit granting process. These touchpoints have been deployed at our clients’ partners in France and in the French overseas territories to distribute different types of products (from rental credit, including « three times free » payment).

We have also been working to implement a product simplification program which adapts products to the distribution strategy and creates and deploys them faster.

Finally, the VERMEG platform facilitates the implementation of big data strategy, thanks to its strong interaction with the datapool.

IS THIS DIGITAL PATH ALREADY SHOWING RESULTS?

Definitely! The implementation of the engine and the end-to-end paths have reduced the time to study and grant a consumer credit from days to minutes. The customer experience is greatly improved.

The implementation of such a digital path creates the conditions for attracting customers at the point of sale faster and in greater numbers. The high-performance engine speeds up the review of credit files and increases the conversion rate of prospects into customers.

Simplifying the paths allows us to speed up product launches within a simplified range. Our customers know that it can’t take months to prepare for Black Friday!