In 2022, banks and credit unions will look to expand their view on financing options for customer, using creative thinking, flexible options and expeditious customer service to improve the customer experience and gain a competitive edge. Consider the following options when thinking about how your financial institution approaches financing options.
Buy Now, Pay Later
The innovation of creative financing has seen buy now, pay later options take the forefront in 2022. Most notably, these financing options are appealing because they typically don’t require any approval, are offered on-the-spot, and of course, they create a more appealing payment plan on major purchasers for consumers.
Retailers selling expensive products are already on board with buy now, pay later financing options and will look to the flexible payment plans as a value add and way to overcome objections to purchase.
In an effort to become more efficient and streamlined, non-bank institutions that offer financing for expensive products, such as vehicles, will look to third-party providers to improve the financing experience.
Notably, these third party loan providers will function as a service more than just the loan itself, offering customer service and opportunities to refinance throughout the life of the loan. By thinking of the loan itself as a service, the issuing organization will be able to think of the financing aspect of their business as another touchpoint, working with third-party providers to deliver on customer satisfaction within that touchpoint in order to gain a competitive edge.
Financial institutions will find increasing partnerships with FinTech organizations — namely, those who focus on financing and loans options as their core value add.
Financing has typically been slow and arduous through financial institutions, and there are now FinTech and other organizations thinking about the loan process from front to back in an effort to expedite the process, improve customer experience, and carve out a niche additional value that exceeds what has typically been provided. Additionally, this new streamlined approach aligns more closely with the increasingly impatient “I want it now” attitude consumers have become accustomed to in the digital age.