We all love customization in everything we buy. A personal touch in any product interests us more than any other product. Today the customer is very selective, they want personalisation in everything. Our financial industry too are facing such demands. It creates value for borrowers and creates a closer bond between them and the lender which is beyond the loan itself. Tailor made loans specifically for you as per your needs is all that the borrower needs. This strategy is largely adapted by NBFCs these days. Even though customisation has been one of their key features. But as it’s getting more popular in many brands and industries, NBFCs along with other digital lending platforms are also catching up.
In the last few years, Non Banking Financial Institutions have outperformed almost all other financial bodies in deploying credit across the country. By using technology to penetrate the under-served section of society, NBFCs tapped on the opportunity and capitalized the inability of banks to scale operations rapidly and customize rigid policies along with products. Additional advantage of the timing of demonetisation and GST also aided NBFCs to get established in this vast financial industry.
NBFCs’ plays a crucial role in financial inclusion by complementing banks in our financial industry. Our financial industry desperately needed to reach the unbanked sector and NBFCs filled this huge gap. This gave them an upper hand which allowed them to innovate and customize products as per the needs of the customers.
The main reason that NBFCs worked in such a way in India speaks very clearly about the need for financial aids in the unorganized section of our society. Banks are usually very skeptical of taking risks nowadays. This rigidness turned the whole table around for NBFCs. A technology based approach with a strong balance sheet makes it easy for NBFCs to penetrate in the lending sector. NBFCs try to shorten the gap between the needy and the needed.
The untapped segment of society was disrupted by NBFCs with the help of a variety of products which were curated exactly as per their needs. Also, with the help of technology it’s slightly easy to get hold of information about the financial needs of the customers. NBFCs have utilized it for their growth and wisely so.
Benefits Customizing Brings :
- Personalized products ensure wider customer reach along with higher customer satisfaction. These are the motives that drive any NBFC. The major advantage that we get with personalisation is it promotes loyalty and word of mouth endorsement among customers.
- Since there are many NBFCs out in the industry, competition among them comes naturally. Well, if given choice to any borrower. They will choose a loan which can cater a custom created loan as per their requirement.
- Customer data, their requirements and needs are strong ingredients when it comes to personalisation of products and services. NBFCs and lending businesses which are technology driven can have it easier than others. Gaining an insight of prospective customers and adapting as per their preferences is the key.
- Digital lending platforms and NBFC softwares have this advantage of being more responsive. With more benefits of getting large customer insights and wider reach, adapting personalisation becomes much easier. It makes perfect sense to utilize all the available resources at hand.
How Can You Adapt Customisation :
It’s easier than you might think to deliver highly customized experience in the lending process. Doesn’t matter if it’s a small institution or traditional lender. Borrowing needs are endless. We need financial aid throughout our lives. For education, for home, for marriage, for vehicle, for commencing business, for travel and more.
Let’s discuss some insights on how can we adapt this strategy:
- Delivering personalized experience even in lending business is more favorable for customers. Seeking them out of their future borrowing needs is a more attractive deal for them. This can be achieved by knowing them and their needs and delivering exactly that. Using various analytics and other NBFC software technologies, a variety of customized loans and related services can be figured out. This system can be more suitable for every set of borrowers.
- Customizing your lending platform establishes credibility to your organization in the market. You can increase your customer relationship beyond loan by knowing them and providing them personalized experience. Getting customer data, their requirements only require a tad bit of study given the technical advantage.
- To some extent NBFCs have this statutory benefit of taking charge of their policies. Knowing the problem and creating a streamlined system to solve that problem at hand is the crux. NBFCs can amend their work flow as per this strategy.
- Keeping other economic factors aside, it is revealed by a study that the most important factor borrowers consider while choosing a lender is the speed of the process. To solve this many NBFCs today use AI systems that remove labor intensive processes of moving back and forth from manual processes. This ultimately saves time and money for everyone. So customisation is very important but so is time of delivery.
- NBFCs can play very smartly with their pricing strategy too. With the non-standardisation approach in pricing, they are also able to customize in terms of lending risk and profile of the customers.
Customisation or personalizing in the finance industry is all about delivering service or product based on customer data and their personal experiences. Additionally, personalisation also ensures increased engagement, improved customer retention, customer loyalty, enhanced customer services and encouraging ROI.
Created by people who have experience in technology as well as in the financial industry, Wind Finance is a customizable platform that ensures benefits for both the borrowers as well as the NBFCs. Our goal is not to push our ideas on to customers, but to make what they need. Customization and affordability is the best combination and wind finance has obliged the same. We ensure a win-win situation for both the lender and the borrower. By providing a deadly combination of online experience and customisation with commitment to customer service, WIND FINANCE is a key recipe for your success. We are eagerly willing to work with your organization to develop a customized lending solution that serves the best for you.
To know more about us or for a demo of how Wind Finance enables you to customize your lending process, kindly get in touch with us.