Creating a Seamless Customer Experience in the Secured Finance Industry.

In the world of secured finance, customers often encounter a fragmented journey involving several different stages and touchpoints that are not always seamless or integrated.

For example, a customer may begin the application process online, but then be required to provide additional documentation or complete additional steps in person or over the phone. After the application is approved, the customer may receive funds or other benefits through a separate channel or platform.

Similarly, the repayment and account management process may also involve multiple touchpoints and channels, such as online payments, direct debit, or in-person transactions. Depending on the type of financial product or service, there may also be additional requirements or steps involved, such as maintaining a certain credit score or maintaining specific criteria.

This fragmentation in the customer journey can lead to a sub-optimal user experience, with potential delays, confusion, and frustration.

Here’s an example of a typical customer journey in invoice factoring:

1. Application: The business owner begins the process by submitting an application to the factoring company. This may involve filling out a form online or over the phone, and providing information about their business and the outstanding invoices they wish to factor.
2. Due Diligence: Once the application is received, the factoring company will conduct due diligence to assess the creditworthiness of the business and its customers. This may involve reviewing financial statements, credit reports, and other relevant documentation.
3. Funding: If the application is approved, the factoring company will provide funding to the business, typically in the form of an advance payment on the invoice amount. This may be provided in one or more installments, depending on the terms of the factoring agreement.
4. Collections: After funding is provided, the factoring company assumes responsibility for collecting payment from the customers who owe the invoice amount. This may involve sending reminders, making calls, and pursuing legal action if necessary.
5. Repayment: Once the invoice is paid by the customer, the factoring company deducts its fees and other charges, and pays the remaining amount to the business owner.

Most often the customer's journey is executed and maintained on varyingly disparate workflows and platforms, from manual and physical data collection, local and cloud-based storage, CRM, payment, and portfolio management software that are oftentimes too prohibitive to integrate.

The fragmented nature of the customer journey can lead to delays, errors, and confusion, particularly if there are gaps or inconsistencies in the communication and documentation between the business owner, the finance company, and the customers.

By integrating these different workflows and platforms, organizations can benefit from increased efficiency, reduced costs, and improved customer experiences. For example, using a digital platform that integrates origination qualification, real-time data aggregation, customer relationship management, payment processing, and portfolio management can streamline the entire customer journey, making it easier and more transparent for both the business and the customer.

Ask us how harbr.com works with secured finance orgs to create a seamless customer experience.

Photo by Afif Ramdhasuma on Unsplash