Banking in times of substitutable financial institutions

Banking in times of substitutable financial institutions

20 May 2019

The credit world has been in a state of transition for some time now. Private individuals as well as companies increasingly trust direct banks and fintechs in addition to their former house banks when it comes to banking transactions. But what are the advantages of the new digital competitors over the established institutions? Already last year, a study by Yougov (you can download the complete study free of charge here) came to the conclusion that half of all customers no longer see any differences between their main bank and other financial institutions. While three quarters of all direct bank customers still perceive significant differences to other institutions, the rate was well below 50 %, especially for large banks and savings banks.

Price remains one of the main differentiators and the reason why direct banks in particular perform particularly well. Other important aspects for the direct banks, however, are above all the online offering, the service and the mobile orientation - all three points which have clearly gained in importance in recent years and in which, according to the study, only the major banks succeed in differentiating themselves with their online offering, while cooperative banks and savings banks are far behind here.

If one now breaks down the differentiation points, it becomes clear that the direct banks win customers with the price, particularly through their consistent focus on automatic and lean processes. Despite and precisely because these processes are often carried out with little or no human support, customers can very quickly apply for credit and often receive a credit decision within a few minutes and thus also the money, which leads to a high level of customer satisfaction.

Collenda supports the financial industry with an innovative credit application process which, depending on the customer's requirements, either only supports the applicant and the employee, but can also accept the application fully automatically, check the credit according to the customer's specifications and finally create the account with the disbursement. This makes it possible to accelerate a process that used to take days and weeks to complete to just a few minutes. To achieve this, Collenda relies on a mix of new technologies such as AI, in-depth banking know-how and strong partners to develop the optimal solution for your customers at all times.

Would you like to find out more about our innovative credit application processes? Feel free to contact us - we look forward to hearing from you!