Brand Loyalty is Dead
After the 2008 financial crisis, the lending market shifted gears and began to focus on creating a better customer experience and with COVID-19 disrupting the market, we find ourselves changing, yet again, to better fit customers’ wants and needs. But what exactly are their wants and needs? We’ve spent years building brands aimed at customer-centricity but is that truly all it takes? Unfortunately, we found out that the answer is no. However, the good news is we have valuable information that will help you find out what consumers are looking for and how to become their preferred choice for lending.
We surveyed over 500 U.S. consumers who applied for a loan in the past 12 months, and whose application was accepted. The aim was to get a deep understanding of the consumer’s overall attitude towards lending in this new socially distanced economy. We asked questions to see their loan buying journey from start to finish. We wanted to understand their expectations, experiences, and preferences throughout the process. What we found out? Consumers are now shopping for loans the same way they shop for clothes – with a lot of options and almost no brand loyalty.
Pricing is King
From the survey, we compiled all our insights into an easy to read e-book where you can look through all our findings. One of those being that price is the top driver. It used to be the case that consumers wanted to stay with their primary bank, per the research, but we're now seeing that brand and reputation isn't enough. It no longer keeps consumers loyal and it is not the key driver for them anymore, pricing is.The market is competitive and with interest rates continuously being openly advertised, consumers are spending more and more time focused on making sure they get the lowest possible rate.
Almost half of all respondents listed a low interest rate as their top criterion for loan selection.
But wanting a low interest rate wasn't the only key consumer preference we found in the data. Download our e-book today to read all of our valuable findings from this year’s consumer lending survey. In this era of socially distanced banking, it’s important to stay close to our customers by evolving to the wants and needs of the times and being a well-rounded lending provider.