Payveris introduces loan payments for financial institutions
By Edlyn Cardoza
- credit union
- Financial Institutions
Modern money movement leader Payveris, a division of Paymentus, recently launched Loan Payments®, a cutting-edge loan and debt repayment service with the widest array of real-time payment methods and channels available on the market. Loan Payments® is designed to help financial institutions meet rising consumer demand for payment methods and channels that are speedy, convenient, and secure — while reducing operational overhead and fostering better customer engagement and loyalty.
An Aite-Novarica Group survey from 2021 found that 89% of consumers want more real-time payment options from their digital banking experience. As consumers enjoy more payment choices, speed, and convenience in just about every other aspect of their financial lives, they expect the same from their loan payment servicers — and aren’t satisfied by the status quo from financial institutions. A recentJ.D Power study found that non-bank loan servicers saw a 17% increase in customer satisfaction, while banks only saw a 4% increase.
“When financial institutions make it complicated to accept and receive payments through coupon books or legacy loan payment systems, borrowers are less likely to consider them for their next loan,” explained Payveris Chief Innovation Officer, Marcell King. “Providing choice, speed and autonomy is no longer a bonus, but a baseline expectation for consumers. Financial institutions must seriously rethink their loan payment experience and meet customers where they are, and Loan Payments® can help them get there. Whether that’s an auto loan, a personal loan, or a mortgage, the days of consumers using a coupon book have passed.”
With Loan Payments®, financial institutions can deliver a true omnichannel experience that matches what consumers have come to expect from shopping or paying bills. Payment methods supported by Loan Payments® include cash, debit card and e-check/ACH. Loan Payments® also empowers consumers to choose their preferred payment channel, whether online, mobile, text, PayPal app, Amazon Alexa, Walmart, or directly at their bank or credit union. In addition to more convenience and flexibility, Loan Payments® gives financial institutions’ customers more control over how they automate and schedule payments and the ability to spread their payments across multiple methods at once.
Financial institutions that offer dated loan payment experiences — in which non-deposit customers can’t easily pay their loan bills online, make payments using various sources, or have their payments post in real-time — accrue more overhead costs in the form of inbound phone calls. With a sub-optimal loan payment experience, financial institutions invite these costly interactions with their customer service representatives. This problem only gets worse with scale.
WSECU, a Payveris customer since 2020, is one of the first financial institutions with plans to roll out Loan Payments®. “Our first priority is to improve the loan payment experience for members, making it easier and providing them more options,” said Melissa Wolff, Vice President, Operations Support and Payment Services at WSECU. “Payveris is helping us do that, and that alone is a big win. But there is also more we gain, including the operational efficiencies that come from no longer managing disparate processes. Now, everything is centralised into one payment processing system, regardless of which option best meets the needs of an individual member.”
Financial institutions also stand to gain another avenue in which they can drive customer engagement and loyalty.
“Customer loyalty traditionally is not a priority for loan servicing — your borrower is in debt to you, so it’s not like they can easily take their money elsewhere,” added King. “But in today’s lending landscape, financial institutions that succeed in payment modernisation solidify relationships with customers and position themselves to convert indirect borrowers into full-fledged customers, pursue more cross-selling opportunities, and raise a customer’s total lifetime value.
Loan Payments® was first developed by Payveris’ parent company Paymentus. The solution is powered by the Instant Payment Network®, the market’s only integrated ecosystem of real-time digital bill presentment, payment, and money movement capabilities. The Instant Payment Network® is currently trusted by numerous Fortune 500 companies, with more than 10 million consumers relying on it to make payments.
Other key benefits Loan Payments® offers include:
- Guest Pay – Most financial institutions do not have a guest pay option, creating friction within the loan repayment experience for indirect customers. Loan Payments® solves this pain point, improving the user experience for the consumer while helping financial institutions convert indirect loan members into primary account holders.
- Alerts & Notifications – Loan Payments® has intelligent alerts and notifications sent directly to borrowers’ mobile devices to help them stay on top of their loan payments.
- Compliant & Secure – Level 1 PCI Compliant EBPP platform ensures electronic payments are secure and meet industry standards, offloading the burden and cost of compliance.
- Secure Service® – Cohesive call centre experience that eliminates PCI scope minimises risk for financial institutions and protects customer’s payment information when sharing details through a mobile phone channel.
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