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  Data is the life wire of every business, because business thrives on information in executing various business operations. The capacity to make better quality decisions while simplifying costs – which is possible through data – is driving payments digitalisation in the lending sector.
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In the past, digital lending platforms were victims of imperfect reconciliation and they were disputes when it came to payments and the payment department was costly to maintain. However, in the age of big data and the internet, most operations in the lending industry have been digitized. This has provided them with opportunities to use data to create a happy and productive customer experience. When digital lenders create a happier and smoother customer experience, it increases larger patronage by clients and more patronage means more revenue for lenders. With this narrative communicated, there are five ways digital lenders can use data to perfect loan disbursement and collection processes to deliver a seamless customer experience and increase their earnings. 
  • Data Can Be Used For Quick, Near Real-time Decisions
Complex payment processing software applications and platforms in general consist of real-time transaction statements and data analytics which give a landscape overview of the lender’s payments activity, improving visibility over incoming and outgoing payments, while honing the ability to make valuable decisions. By displacing manual procedures with automated tools and software, lenders can also curtail intermissions on payment cycles for repeat billing.
  • Data Can Be Used To Boost Collection Success To Drive Financial Stability
With the availability of data insights, lenders can access clarity about clients that are inclined to default on payments or who will need their loans modified. There are distinct payment processors that give insights to their lending clients about the optimal time to take customer payments and offer a speedy settlement. With these insights, it can help to maximize success rates and improve liquidity. Some lenders can also utilize extensive decline data and account updater solutions which reduce cost-intensive manual updates.
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  • Data Can Be Used To Refine New Product Offerings
When looking to create new products and services, payments data can enable lenders to develop solutions that are modified to meet customer needs. Payments data can improve a lender’s ability to understand their clients’ financial needs and develop new products that can be offered at strategic times to optimize the possibility of commercial success. This is especially suitable for lenders who use recurring or subscription-based models.
  • Data Can Be Used To Perfect Customer Experience
The crucial thing lenders can do with the wealth of payments data now available is design a more sophisticated and refined knowledge of their customers. When lenders are better informed about their clients through real-time insights generated from data through their payments activity, they can connect with them at the most suitable period to maximize commercial opportunities and provide that customer with a positive experience.
  • Data Enables Lenders To Act As Financial Advisors To Customers
One of the greatest offerings lenders can give their clients is saving, spending and investment advice. With data drawn from various pools of resources, lenders can incorporate financial advisory into their operations. Through available data, lenders can inform clients on the latest happenings in the financial system to prepare clients ahead of time or better equip them on how best to spend, save or invest their money. Featured image source: iStock
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This article was first published on 23rd March 2022 and updated on April 11th, 2022 at 12:25 pm

nnaemeka-emmanuel

Nnaemeka is an academic scholar with a degree in History and International Studies from the University of Nigeria, Nsukka. He is also a creative writer, content creator, storyteller, and social analyst.

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