Consumers Prefer Free Instant Payments | PYMNTS.com

Significant progress has been made in recent years towards more streamlined and automated digital lending and disbursement processes. Pairing automation with data and improving workflows can enable personalized approaches that create a better customer experience.

The shift to digital lending has allowed FinTech lenders to use automation to improve the speed and accuracy of their underwriting decisions. The digital trend is also impacting the loan management process, with disbursements and repayments being processed electronically through various channels. This decision not only increases the speed at which funds are disbursed and collected, but also provides more opportunities for applicants to receive and repay loans in the way that best suits their needs.

This can improve customer loyalty. A new study, the November / December 2021 Payout Tracker, a collaboration between PYMNTS and Ingo Money, found that 61% of consumers would be more likely to do business if they offered free instant payouts.

Get the study: Monitoring of disbursements for November / December 2021

This figure is even higher when it comes to insurance and loan disbursements; in this case, 63% of consumers would be more likely to do business if they offered free instant payouts. This places this category in the middle of the seven included in the survey, among which results ranged from a low of 62% to a high of 64%.

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In addition to disbursement speed, digital lending also provides more accessible data to lenders regarding individual borrowers and overall processes. This data can also improve the customer experience, helping lenders personalize the user experience at every step of the lending process, from communication to account management.

Individuals are showing increasing interest in obtaining loans, and digital solutions will play a critical role in acquiring and servicing these loans effectively. Still, lenders of all types and sizes will need to assess their processes, make sure they are improving and not stalling.

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NEW PYMNTS DATA: WHAT BRITISH CONSUMERS EXPECT FROM THEIR GROCERY EXPERIENCES

On: Forty-four percent of UK grocery shoppers spend more in grocery stores when they have access to loyalty programs, and an equal share say the presence of loyalty programs alone dictates where they shop. What UK consumers expect from their grocery shopping experiences surveyed 2,501 UK consumers to examine how retailers can make the most of loyalty programs to increase spending and gain new customers.

Harry L. Blanchard