61% of Consumers Would Be More Likely to Do Business if Offered Free Instant Disbursements

Significant strides have occurred in recent years toward more streamlined and automated digital lending processes and disbursements. Marrying automation with data and improving workflows can enable personalized approaches that create a better customer experience.

The move to digital lending has enabled FinTech lenders to use automation to improve speed and accuracy in their underwriting decisions. The digital trend also impacts the loan management process, with disbursements and repayments handled electronically through various channels. This move not only increases the speed with which funds are disbursed and collected but also provides more opportunities for applicants to receive and repay loans in a manner that best suits their needs.

That can improve customer loyalty. A new study, the November/December 2021 Disbursements Tracker, a PYMNTS and Ingo Money collaboration, found that 61% of consumers would be more likely to do business if offered free instant disbursements.

Get the study: November/December 2021 Disbursements Tracker

That figure is even higher when it comes to insurance and loans disbursements; in this case, 63% of consumers would be more likely to do business if offered free instant disbursements. That puts this category around the middle of the seven included in the survey, among which the results ranged from a low of 62% to a high of 64%.

In addition to the speed of disbursement, digital lending also provides more accessible data to lenders regarding individual borrowers and the overall processes. That data can also improve the customer experience, helping lenders customize the user experience at every step of the lending process, from communication to account management.

Individuals are showing a growing interest in securing loans, and digital solutions will play an essential role in acquiring and servicing those loans efficiently. Still, lenders of all types and sizes will need to evaluate their processes, ensuring they are improving and not staying stagnant.