As Millennials and Gen Zs begin to form a larger share of banks’ customer base, the need to offer them products and services in tune with their expectations is being keenly felt. Customers demand the same level of customer experience from their financial service provider as they do from their social media platforms. Banks are scrambling to keep up. While banks have made great strides in improving accessibility and distribution channels, the focus is now shifting towards rapid product facilities.
Instant products such as instant home loans or instant auto loans allow customers access to finance immediately. These products enable customers to get the final sanction letter for financing instantly. These can be for new loans as well as for a top up loan, delivered completely through digital channels. Reducing the regular approval time from days to minutes allows customers enhanced convenience and flexibility.
How we add value
- Product Proposition: Based on global best practices, and potential market opportunities to be addressed, Cedar recommends the product proposition for instant products. This includes the design for key products, including key features, pricing structure, customer value proposition and prioritization from short to medium term perspective. The product features and pricing are carefully designed to maximize traction in the market.
- Product Rollout Strategy: Cedar follows a Balanced Scorecard led approach to develop a product rollout strategy. Cedar determines the overall size of the market opportunity and identifies target customer segments and customer acquisition models to enable a clear understanding of the scale of opportunity. Crucially, Cedar defines the delivery and service model to be adopted, aligned to the process framework of the bank. This would include high-level design of key fulfilment processes and critical customer service requirements for the instant product offerings across identified target segment. Cedar also develops an overall marketing framework to drive growth of the instant product category.
- Credit: As the entire premise of instant products is based on speed, the credit framework that needs to be designed has to be fit for purpose as well. The traditional credit framework is inadequate in this context. Cedar helps financial institutions develop a credit assessment framework that is aligned to the needs of delivering an instant product. Credit assessment is often enhanced with technology and automation, using secondary data sources such as social media data (with customer’s permission) and utility payments to deliver on the need for instant approvals.