What’s good for borrowers is good for lenders
We all understand that winning business requires making concessions to borrowers. Whether it’s lowering the cost of credit through competitive interest rates and fees, enhancements to the borrower experience, or even an overt rewards system, anything that entices consumers and businesses to go with your product is generally seen as a worthwhile investment.
What are borrowers asking for?
In this article, we’ll go over some of the “concessions” credit providers make and the opportunities they present. But in general, what are borrowers asking for? Across the 600+ clients we work with, we’ve seen some common themes:
- Flexibility in spending. Borrowers want different ways to finance different purchases, using installment loans for major purchases and a blend of cards and BNPL options for day-to-day transactions. If a single provider can offer all of these, they have a better chance of becoming the top-of-wallet choice.
- Flexibility in repayment. Whether it’s setting due dates to align with their pay schedule or skipping a payment when they fall on hard times, repayment options help borrowers to stay engaged rather than fall delinquent or default.
| 20% | Decreased in default rates with after one month |
| 50% | Reduction in credit losses after one year |
Flexible spending makes you the go-to choice for financing
Borrowers at every income level understand that different types of credit have their own costs and benefits—interest, utilization ratios, reward points, and a host of other factors—and strategically use those credit options to their best advantage. Many of these borrowers would prefer a straightforward, single-provider experience: leveraging multiple credit types all from the same lender, allowing them to spend and borrow with flexibility while keeping payments streamlined and easy to manage.
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