Modulr: How P2P lenders and crowdfunding platforms are using payments to drive revenue and growth

How P2P lenders and crowdfunding platforms are using payments to drive revenue and growth

Modulr
Modulr
July 2019

Driving growth and achieving critical mass is a significant challenge in the world of alternative finance. Winning new customers from traditional bank lenders and retaining current customers is tough too, particularly when innovative competitors are rising in scope, stature and capability. 

So with this in mind, it’s integral P2P lenders and crowdfunding platforms develop their offering and create products tailored to the specific needs of the market. This allows organizations to differentiate and helps to attract new business in niche sectors.

By embracing innovation in payments, P2P lenders and crowdfunding platforms can improve their service offering to drive both revenue and growth. With the right developments and systems, new capabilities can be unlocked throughout the payment process that offer major benefits to clients. 

This includes:

Immediate, automated repayment of any client overpayments

When it comes to financial matters in high volume P2P lenders, there are always occasional irregularities. This is just par for the course as some of the larger organisations often have over 10,000 borrowers and need to process a large number of disbursements, investor and repayment collections every single day. 

With automation, process efficiency and rapid scalability capabilities, the best alternative finance providers are able to fix problems quickly and drive growth without incurring significant additional costs. 

Self-service borrower and investor portals

With the ability to create individual investor and borrower e-money accounts, rapid onboarding, segregation of funds and simpler reconciliation can all be achieved. 

In addition, programmable rules engines can be deployed to simplify payment splitting, ensuring all accounts are automatically managed, and all parties are armed with the key information they need to understand their financial position.

Responsive and informed customer support interactions

When things go wrong, it’s critical customer service agents have all the information on the situation and full visibility on the status of a client’s account transactions. This data must be available instantly to enable operatives to rectify errors quickly and maintain customer satisfaction.

Instant loan payments after onboarding

Once clients have been successfully onboarded and approved, they have access to instant disbursement, ensuring critical cash flow is available when it’s needed and wanted most. With such rapid transaction speed at the heart of their offering, lenders can develop a crucial competitive edge in the market, going above and beyond to meet and exceed customer demands and expectations.  

Providing proactive client communications

Communication is key to customer satisfaction and so keeping customers in the loop with digital repayment reminders, notifications of successful repayment and payment receipts ensures they have access to the data they need, when they need it. This empowers the debtor and helps them appreciate their financial position.

All of these payment offerings enhance the process of engaging and using alternative finance products. By improving data access, upgrading customer service, reducing payment challenges and raising standards of communication, P2P lenders and crowdfunding platforms can exceed customer expectations and drive business growth.

As competition continues to grow, these offerings will soon become the market standard and so you need to act sooner rather than later, or risk falling behind your rivals.

A flexible and responsive payments and client account service that is tightly integrated with the lending platform can play a key role in delivering these tangible client benefits. As such, you need to embrace the opportunity of payment innovation and drive your business growth with enhanced customer offerings and satisfaction.

For greater insight into the growth opportunities presented by payment innovation, check out our guide to innovative payments processing.

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