Digital Solutions Reduce the Cost of Servicing

Customer demands and preferences are constantly changing. They value convenience and speed during the payment experience in today’s fast-paced environment. As a business owner, it’s essential to provide payment options that satisfy their wants and needs. Offering multiple payment options can expand your customer base while enhancing the customer experience.

Customer expectations and demands constantly change. We live in a digital age where customers value seamless, convenient and flexible experiences that allow them to pay wherever they are and however they want. According to McKinsey, over three-quarters of Americans use digital payments, including contactless in-store purchases, browser or in-app online payments and person-to-person payments.

Payment digitization has transformed how businesses and consumers pay. Consumers, including borrowers, are looking for faster and more convenient payment options and are not afraid to seek out providers who offer their preferred payment technology.

PCI stands for “Payment Card Industry” and is a set of security standards created by the major credit card brands (Visa®, Mastercard®, Amex®, etc.). The Payment Card Industry Data Security Standard (PCI DSS) is the specific set of requirements created to ensure that your business has processed, stored, or transmitted credit card information in a secure environment.

In the age of technology and digitized processes, paper checks are gradually becoming a thing of the past. They were once one of the dominant payment methods, but today, roughly only 7% of consumers pay bills with paper checks. With the rise of electronic invoicing, mobile and digital payments, and online banking, consumers and businesses alike now have a wide range of options for making and receiving payments.

Timely payments from borrowers are vital to maintaining a healthy lending business. One way to increase payments is through an open and effective line of communication. No matter what type of loan you’re dealing with — car, personal or mortgage — lenders and borrowers should be able to easily communicate to ensure both sides remain in good financial standing.

The financial industry has seen many changes over the years, and that includes the rise of digital and mobile payments. As customers have become more reliant on technology — such as their phones, computers and wearables — they’ve also become more accustomed to convenient and flexible payment options.

When you open your wallet to make a payment on a loan or bill, have you ever considered why you reached for a particular payment method? Whether you are trying to earn travel miles on a credit card or are being mindful of your budget with debit cards, we all have different reasons for making our payment choices.

Payment fraud has been rising for years as fraud schemes become easier to execute. The increased reliance on digital platforms, processes and payments has given fraudsters more ways to commit crimes. Studies show that in 2023, businesses’ cost of fraud could rise by $7 billion, bringing the total to $48 billion. With such staggering predictions, taking the necessary precautions to mitigate these attempts is essential.