Accrued: After Hours - Episode 17
In the most recent episode of Fintech Confidential’s Accrued podcast series, hosts Tedd Huff and Colton Pond were joined by Alex Rhodes, Chief Operating Officer at Best Egg. Together, they discussed Best Egg's trajectory from fledgling personal lender to financial powerhouse, with $30 billion extended in loans and landing top ten spots for two years running in the J.D. Power awards for customer satisfaction in consumer lending. They also explored what trends will shape the industry in the future, like how flexible payment options and generative artificial intelligence will both save time and attract new customers.
For a deep dive of what they discussed, read on. You can also hear the full conversation in all the usual places:
Here’s what went down
The three fintech experts focused their conversation around a few major themes:
- Operational efficiency and customer satisfaction are not a zero-sum game. Speed benefits credit providers and borrowers alike.
- Offering flexible payments and other consumer-friendly benefits will drive growth. More than just avoiding high interest rates or fees, many consumers look for a better experience when shopping for credit.
- Several factors are converging to shape financial innovation. The future of finance will be data driven, informed by real-world feedback, and personalized to match individual needs.
Operational efficiency and customer satisfaction
Early in the episode, Colton asked Alex about Best Egg's success in both streamlining their lending operation and driving satisfaction. A typical lender sees an inherent conflict between those two needs. How is it that Best Egg has managed both?
Alex's response is a paradigm shift from that traditional viewpoint: Efficiency and quality are not competing values, but complementary ones. When a person calls in hoping to change a due date, they also want efficiency—get on the line fast, make the change, and move on. Streamlining your processes through training, technology, and good planning will simultaneously make you more efficient and resolve your clients' concerns.
This pairing of efficiency and satisfaction is even more pronounced if you remove the need for manual intervention using self-serve tools and automations. Companies can lower costs while still delivering top-notch service. Using AI and automations to handle repetitive tasks allows employees to focus on improving the customer experience. This approach boosts operational efficiency while providing faster service.
It's also worth remembering that higher employee satisfaction can drive better service. A company’s success often relies on keeping employees motivated and reducing turnover. Everything a credit provider does to make their work environment stronger—like building supportive teams or comprehensive documentation—leads to knowledgeable and committed teams that deliver high-quality service.
Offering flexible payments will attract new growth
Discussing Best Egg's success, Alex shared some of the strategies that have put their products in front of new audiences. Consumers, of course, want access to credit that won't drain their bank account with what they have to pay in the long run. High interest rates or fees, for example, will ward off anyone who has better options. But lower rates or a fixed APR isn't a good enough deal to win business on its own. Instead, credit providers can drive growth with flexible payments.
Alex shared how during the COVID-19 pandemic, Best Egg launched two flexible payment programs to help people who had lost employment stay engaged with their products and continue to make payments. They were able to reduce the greatest risk—defaults—and instead drive long-term revenue as they built their reputation as a company who has clients' best interest at heart. These options attract new customers and keep them loyal, building retention through a smoother and more personalized borrowing experience.
Tech-forward credit providers can even offer these flexible payment options through self-service portals, giving customers control over their accounts management. Portals or mobile apps make it easier for customers to log payments, check balances, and manage accounts without waiting for assistance, offering a faster, more convenient experience.
The future of finance
Alex, Pond, and Tedd agree that the credit industry is evolving toward a personalized and data-driven future. By offering more tailored solutions, lenders are positioning themselves to meet future borrower expectations.
As companies expand their credit offerings, the best sources for inspiration should be their own data and feedback from their customers. Personalized services driven by data are becoming the norm, as firms not only build new products based on large-scale data, but also use personal credit and payment history to modify and adapt an individual's accounts. As lending companies leverage data insights, they can offer more tailored financial products that meet specific needs.
They can pair their data insights with more qualitative information as well, sourcing regular feedback from their clients. Active engagement with feedback ensures that credit services meet the real needs of borrowers, and reveal product shortcomings as the market evolves. Adapting products based on this input keeps services aligned with expectations and market demands.
Key takeaways
Here's five actionable steps that you could implement in your own company to enhance your customers' experience and drive growth.
1. Maximize borrower satisfaction with flexible payment options
Offering your customers flexibility in repayment options will increase satisfaction while also reducing your risk of defaults. You'll turn a period of financial hardship into an opportunity to strengthen your relationship and build loyalty.
2. Leverage AI for streamlined operations
Automations and generative AI can handle routine tasks, allowing your team to focus on customer-facing activities that enhance service and efficiency.
3. Offer self-service portals to empower users
Self-service portals and applications allow customers to manage their credit products without manual action from your agents. It's more convenient for them, and reduces the need for constant customer support, allowing you to focus on more complex cases.
4. Turn customer feedback into fuel for financial innovation
Credit providers should actively gather and apply customer feedback to fine-tune their products, ensuring they meet real cash flow needs and stay competitive in the market.
5. Drive quality service with an engaged workforce
A revolving door of disgruntled workers is not a recipe for quality service. Prioritizing employee satisfaction and retention leads to a more motivated team, ultimately delivering better experiences to your customers.
