It is said that in time everything changes. Certainly, how most of us feel about borrowing money is likely to change, possibly many times, over the course of our lives.
Better intelligence on credit profiling and customer data can support the challenge lenders face in keeping pace with consumer ambitions around lifestyle and loans. It can also combat the drift in customer loyalty that epitomises today’s lending landscape.
Accurately designing a portfolio of products that align with different customer motivations takes time, and this is where the smart application of technology can make a substantial contribution.
It strengthens insights into age behaviour to shape product design and streamlines development, enabling quicker product launch and revenue generation. Outsourcing enables valuable creative resources to refocus on adapting to trends in the market, demonstrating a lender’s understanding of customer needs and strengthening relationships as a result.
Using technology to accurately match consumers with the most appropriate products increases sales conversion. For instance, although millennials are the least likely to own a credit card they are using credit to fund their social lifestyles, meaning they could be incentivised by a product that offers retail reward points at their favourite shops or restaurants. This would align with their lifestyle needs and enable them to build up their credit rating with confidence.
Then, there is the continued rise of a ‘mobile first’ approach to banking products. App-based loan applications and management appeal to tech-savvy millennials and generation-Xers, and increasingly older customers too, as they appreciate the convenience of applying for credit without needing to visit a branch.
But whichever age group, data is the common denominator in helping lenders to respond intuitively and intelligently to customer life stages, especially at a time when aspirational borrowing is blurring the line between generations.
Flexible, automated and agile technology support is a valuable resource in helping lenders to stay ahead of expectations when it comes to the fluctuating needs of consumers, young and old.
[i] https://www.independent.co.uk/money/spend-save/millennial-car-buying-facebook-instagram-financing-options-which-a8505736.html
[ii] https://www.theguardian.com/money/2018/may/19/mortgage-99-years-old-aldermore-bank-mature-borrowers-home-loan-later-life
[iii] https://www.yourmoney.com/retirement/65s-debt-expected-hit-86bn-2018-end/
[iv] https://equiniti.com/media/3520/eq-consumer-report-2017-v6.pdf
[v] https://www.independent.co.uk/money/britons-trend-spenders-survey-money-uk-a8417216.html
