Financial CRM: Engineering a Loan Revolution

CRM Solutions, Financial CRM, CRM software, Digital Lending

A loan gives wings to dreams, solves problems and provides a safety net. 

But, the life of a lender is tough. 


1. Operational inefficiencies
The entire traditional loan cycle, covering loan origination, loan application, risk assessment, decision-making, monitoring and assessment are riddled with lags and operational inefficiencies.

2. Lengthy processing time 
Manual processing of loans increasing delays, costs and reworks. Customers are forced to postpone their plans and other commitments, thus gravely affecting satisfaction and brand goodwill.

3. Delayed loan approvals
Manual approval process increases chances of biases and avoiding risks. Executives are reluctant to take a call on reasonable applications as those may come back to bite them later. This increases backlogs.

4. Legacy systems unable to handle high volumes
Today is the age of digital tsunami. Traditional systems were not designed to handle high volumes of data, analytical requirements, automation, social media coverage etc.

5. Difficulties in regulatory adherence
Strict regulations are choking growth avenues. Lenders are thinking more about regulations than serving customers.

6. Squeezed by digital competition
Upstart technologists are probing for weaknesses, breaking down financial barriers and muscling in customer wallets. Customers are demanding lending power at the palm of their hands in a few swipes with minimum red tape.

These challenges demand nothing short of 'engineering' a revolution that appends the status quo. The changing market dynamics need rapid deployment, management and scaling of operational activities. Fortunately, the checklist is not too long and is just two straightforward steps. 

Step A. Empower Workforce
There is ample evidence to suggest that an empowered workforce is a productive business enabler. Read on to find out how.

1. Equip them with tool that matches needs with offers
Financial CRM guides workforce to match customer needs with available offers. They should be able to capture inquiries, upload documents, check eligibility and pre-approved offers from both digital and physical channels on a single platform. They need to be able to manage and edit applications in real time and automate document intensive processes with in-built document management system.

2. Enable them to conduct quick on-boarding
Your workforce should be able to interconnect and execute routine processes with UI rich workflow designers, inside financial CRM software. Then, they will be able to execute faster and smoother on boarding to maximize upsell and cross-sell opportunities. Tracking the entire loan initiation process on intuitive dashboards will help take better decisions. Customers should also get real-time notifications on their status updates.

3. Bring in robotic process automation
Process automation through intelligent engines through CRM in financial services will help you automatically underwrite loan applications based on predefined parameters and integration with rating agencies. You can even manage exceptions based on rules through relevant workflow routing. The team can easily set business rules to automatically approve conforming loan applications.

Visual designers help route applications automatically to relevant authority on predefined parameters like deviations, loan limits etc. The management can make use of algorithmic analytics and activity tracking to aid real-time decision-making. Automated integrations will bring in regulatory compliance for audits with improved process transparency and approval matrix.

4. Digital Disbursements and collections
An empowered workforce can manage different loan types and interest rate information along with automatically calculating and intimating smart EMI details. They can instantly generate amortization schedule with partial/full disbursal schemes and delivery orders. CRM solutions implemented can then send real-time alerts and notification in case of deviations. 

Step B. Empower Customers
Learn how you can delight customers by shortening loan approvals from 3 days to 30 seconds. 

1. Create custom and intuitive journeys
With the help of a rich UI and UX, create an intuitive journey that captures complete customer information for creating holistic profiles. These journeys should be implemented across channels and touchpoints. The best part is that you don't have to spend resources or toil away coding. Just use feature rich visual designers that involve dragging and dropping pre-defined fields. 

2. Implement self-service platforms.
Engage customers with automated loan buying journeys across devices and channels. Customers will be able to see complete profile details, product holdings, and service history and quickly create or edit service request, find solutions, check status updates etc. All this in a single window. With customer intelligence garnered by analyzing big data, you can create personalized offers with an automated end to end processes for up sell and cross-sell.

3. Quick documentation facility
With the help of financial services CRM, customers can view loan contract details online. In case of any discrepancies, an online case can be instantly generated. They have the power to instantly generate amortization schedule and get a detailed report of paid EMIs and the remaining balance. Smart document management allows customers to upload documents in a single repository and allow them to browse relevant marketing and financial collaterals.

This loan revolution through CRM will form an enduring, profitable and growing relationships, through digital platforms, between lending businesses and their customers.