Loan Payments is designed to help financial institutions meet consumer demand for payment methods and channels while reducing operational overhead and fostering customer engagement and loyalty.
An Aite-Novarica Group survey from 2021 found that 89% of consumers want more real-time payment options from their digital banking experience. As consumers enjoy more payment choices, speed, and convenience in just about every other aspect of their financial lives, they expect the same from their loan payment services and aren’t satisfied by the status quo from financial institutions. In fact, a recent J.D Power study found that non-bank loan servicers saw a 17% increase in customer satisfaction, while banks only saw a 4% increase.
Company officials stated that when financial institutions make it complicated to accept and receive payments through coupon books or legacy loan payment systems, borrowers are less likely to consider them for their next loan. Providing choice, speed, and autonomy is no longer a bonus, but a baseline expectation for consumers. Financial institutions must rethink their loan payment experience and meet customers where they are.
With Loan Payments, financial institutions can deliver an omnichannel experience. Payment methods supported by Loan Payments include cash, debit card, and e-check/ACH. Loan Payments also enables consumers to choose their preferred payment channel, whether it's online, mobile, text, PayPal app, Amazon Alexa, Walmart, or directly at their bank or credit union. In addition, the service gives financial institutions’ customers control over how they automate and schedule payments, and the ability to spread their payments across multiple methods at once.
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