Rampant technological advancement and the growth of the digital have been a welcome change, especially in the Indian financial sector. Gone are the days of lengthy application processes and multiple visits to your lender's branch.
Now to stay attuned to the new class of tech-savvy customers, most lenders have turned to technology to offer affordable loans. Thanks to digital lending and loan apps, you can avail of a personal loan through a quick application process and even quicker approval and disbursement.
However, to succeed in this new transition, lenders have to realise the importance of the quality of service they offer with personal loan apps.This is crucial as a poor experience might lead to people not using that service or simply switching to another lender.
So, let's dive deep to see how enhancing user experiencecan help personal loan apps succeed.
The importance of quality of service and the challenges involved
Customers today are more likely to remember their experiences when engaging with any business. With the advent of digital lending, loan apps can streamline the entire loan process and complete it in a day or two. A personal loan app that is fast, easy to use, and offers quality customer service can help bring in first-time borrowers as well as old customers.
But it's easier said than done. Let's take a look at some of the challenges that these lenders face.
Lack of trust
Because traditional methods of lending money involved people, there was always an element of trust. People could make decisions based on open communication, which is missing in personal loan apps.
This gets challenging as a majority of people using these apps are first-timers. Furthermore, people taking loans for the first time might not be aware of a lot of terms and conditions. Factors such as credit scores and interest rates can all be new to them, which can affect their loan process.
Access to the right information
Even if people manage to get through personal loan apps, it can still be challenging for them without the right information. For example, lenders traditionally help consumers with their documents to make sure they are right. But, since there isn't any human intervention, people might end up using the wrong documents or miss out on a few while submitting their loan applications.
Additionally, consumers may not be fully aware of the consequences of not paying loans on time and what it could mean for future necessities. So, personal loan appshave to work on providing users with the right information at the right time to ensure a seamless process.
Complexity in usage
Similar to dealing with loans in person, loans that are disbursed through personal loan apps must also be simple. Complicated procedures that the apps may have can be problematic for consumers to use.
Apps must work on providing a simple interface with crystal-clear instructions for users to follow. This can be accomplished by using a step-by-step approach depending on the needs of the user. For example, if a customer wants a personal loan for a budget of Rs 5 lakhs, then the system can provide instructions based on this need. Steps such as the interest rates and documents needed can be displayed on the screen so the user understands the process much more easily.
User reviews
There is no denying that user reviews and ratingsplay an important role in providing quality. This is because over 81% of consumers check Google reviews before making a purchase. So your business entirely depends on the quality of service provided as that would lead to a good review.
How can personal loan apps provide better service?
While there is no straightforward answer for personal loan apps to provide better service, it comes down to a few fundamentals. By getting these fundamentals right, apps can focus on streamlining their process.
Customer support
Since the interaction between people is less on personal loan apps, providing customer support helps build that trust. For example, if a customer is confused about choosing one loan over the other, effective customer service can help clarify that query easily.
This could be through the phone or over email, as per the customer's convenience. However, it is important to note that customer support must be apt and to the point. Complex or time-consuming service can make a confusing problem turn into an unpleasant experience for the customer.
Provide transparency
Transparency at all levels is important when a consumer uses personal loan apps. Especially when it comes to first-time users who might not be aware of the various terms, conditions, and charges that come with the loan, transparent communication can go a long way in building trust.
So, a quality personal loan app experience starts with fully disclosing the loan amounts, the interest rates, EMI options, and the paperwork involved. Furthermore, all loan charges, including processing fees, prepayment charges, and penalties, must be clearly displayed before the consumer applies for the loan to help them make an informed decision.
Personalised service
Every customer's need is different from another. While one person may need a personal loan to handle a medical emergency, others might need more funds to pay for their child's education. In such cases, it helps when personalised service is offered.
Personal loan apps can set systems in place to fully understand customer needs before displaying solutions. This can be done by gathering the right information, and using analytical models and ML predictive algorithms to bring them loan offers that best suit their needs.
For example, let's assume a customer wants to avail of a personal loan to purchase a vehicle. Rather than showing a personal loan, the system can show a vehicle loan with attractive interest rates and flexible tenures. This can ensure proper quality of service and even leave the customer with a great experience.
Choosing a personal loan app
Lenders work in a competitive market for personal loan apps, and they need to think of novel ways to stay ahead of the competition. By bringing in newer updates and offering more personalised services to customers, lenders can help guide customers with the right loan services.
If you're looking for a multipurpose loan, download Tata Capital mobile app to choose the right loan for you. We offer complete transparency within our processes and bring you a personalised experience that helps you apply for a loan that best fits your needs. Visit our website or download our app today to know more.
04 July 2023
6 mins read
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