G A U G I N G T H E M A R K E T
G A U G I N G T H E M A R K E T
entrepreneurs on everything from the best path through lean times to techniques for cashflow management .
Surviving and thriving in this growing SME space calls for investment in digital solutions . Digital lending will be critical because SME customers are themselves mobile-first , meaning branch visits are not an option . Nor are long , drawnout application processes or extended approval cycles . The modern entrepreneur is not looking for complex consoles and complex tools to manage their finances ; they want fast , frictionless experiences .
The good news is that in catering to these exacting standards , regional banks enjoy a range of benefits beyond customer approval . Digital Transformation in the 2020s inevitably weaves its way towards automation . This is an extraordinary cost-cutting measure . It reduces the need for expensive branches . It takes thousands of labour hours of paperwork processing off the
SURVIVING AND THRIVING IN THIS GROWING SME SPACE CALLS FOR INVESTMENT IN DIGITAL SOLUTIONS .
plates of beleaguered human employees . And contact centres can optimise their resource utilisation and direct agents to use their time to be more proactive with customer communication .
The metrics system
Data from Backbase shows digital lending can speed up loan processing by as much as 90 %, and application times by 30 %. The entire lifecycle – from application to decision and beyond – is transparent , with customers receiving real-time updates at their whim , through an app . This makes digital lending a significant boost for customer satisfaction ( CSAT ) and net promoter score ( NPS ) metrics , while reducing the burden on call centre teams . Digital lending also opens the door to embedded credit , a segment that is expected to grow to US $ 15 billion by 2025 .
Digital lending also presents an opportunity to reduce risk by introducing data-driven decision making . The region ’ s non-performing loan to gross loan ratios are as high as 7.5 %. With the right analytics , loan assessment can be greatly enhanced , which is a boon in the higher-risk SME segment . Digital-lending platforms allow a 360-degree view of the customer . So again , data drives better decisions by providing financial histories and preferences that guide engagement . In the right circumstances , decisions
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