Attract New Banking Customers with Digital Lending Platforms

Customers are looking for new ways to budget their finances, especially younger consumers seeking ways to make larger purchases without drowning in large amounts of interest. If financial institutions don’t try to keep up with the digital lending platforms already in place by retailers and fintech companies, they will likely have a difficult time attempting to attract any new younger customers. 

In this post, we will talk more about innovative digital lending platforms that the FinTech companies are offering. Find out how using them will reward your financial institution with more customers, along with many other benefits!

Innovative Digital Banking Solutions

Perhaps the biggest selling points of Buy Now, Pay Later programs currently on the market are ease of payments, more flexibility, no interest, and simple approval process. For younger consumers, these programs enable them to make larger purchases than what was possible for them before. Most of these consumers do not want to pay off exceptionally big purchases in one payment, and they do not like accumulating balances on their high interest credit cards

Now Gen Z and Millennial consumers can make these larger purchases with confidence, resulting in not only higher than average orders for merchants, but also a higher number of sales as well. From a customer standpoint, these programs help make more intelligent budgeting decisions, a big reason why these customers flock to Buy Now, Pay Later almost exclusively. A survey by Afterpay found that 42% of Gen Z and 69% of Millennial shoppers are more likely to purchase items if a BNPL service is offered.

As much as younger generations get the attention for seeking new digital banking solutions, they aren’t the only age group using them. Some might be surprised to realize there is little distinction any longer in what customers prioritize and want from their everyday banking needs. Even if the overall purchases differ, most just want personalization based on their history and habits.

How to Get New Bank Customers

Financial institutions typically spend too much time focused on their internal goals instead of adjusting thinking to spend more time on consumer goals. Digital solutions can assist both lenders and their customers, but too many of these implementations take place with the main goal of cutting down costs and earning more revenue. While this isn’t an unreasonable thing to want to attain, some of these self-serving solutions aren’t attracting any new customers. 

Ultimately, an excellent customer experience, especially a streamlined digital one that recognizes customer preferences, will aid in earning a new customer base. Many customers believe their current financial institution falls flat or is still playing catch up to FinTech companies. Financial institutions are simply not providing the options most of today’s consumers want.

Millennials and Gen Z customers are much more likely to shop at retailers that offer a Buy Now, Pay Later option, but banks are slow to respond to an option of their own. Many provide the means to split payments up after the purchase is made, but not at the time of purchase. When financial institutions fail to meet customer demand, they risk the threat of losing out on revenue from an entirely new pool of young customers.

Even small community lenders can take advantage of the slow movement from the larger institutions. Small community lenders may believe they do not have a need for digital lending platforms but leveraging some new technology will earn these banks a competitive edge.

Advantages of Technology in Banking Sector

As discussed, the goal of better digital offerings is to bring in new customers and retain existing ones. While this already should be enough of a reason to take the next step, here’s a few more benefits to implementing a digital lending platform.

Better User Experience – Customers seek an easy, fully digital way to make purchases in installments from the convenience of their phones. Adding installment loan options shows you’re willing to meet the demands of the consumer. A positive experience will lead to word-of-mouth referrals to earn your institution more clients.

More Revenue – By refusing to offer more digital lending options, your financial institution will lose out on some easy profit. Digital installment loan applications generate a high return on assets since the initial cost of investment is relatively inexpensive.

Leverage Digital Lending Platforms with Quilo and Red Rock Financial

Ready to take the leap into the future with digital lending? Installment loan programs like Quilo provide a turn-key solution to meet the growing demands for small-dollar lending. To get started with Quilo and mobile installment loans solutions, look to the experts at Red Rock Financial. Learn more about the platform here, otherwise, read more about the features below.

At Red Rock Financial, we represent a solution that offers an easy way for community financial institutions to provide instant installment loans and compete with the FinTechs! Consumers simply need to fill out a short application on their smartphone, which only includes a soft credit pull. Unlike traditional loans, you are instantly approved for a loan of $250 – $9,999. 

Consumers can use these loans for new purchases, either online or in-store, or to pay off or pay down recent debit/credit card purchases or replenish a debit card account. Your financial institution determines your risk tolerance parameters and profitability objectives – you are in total control.

Do you think our programs might work for your institution? Let’s start a conversation. You can get in touch with our team at (847) 867-3311 or via our online contact form.