Money movement platform Payveris, a division of Paymentus, has launched Loan Payments®, a 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 — all while reducing operational overhead, 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.”
In fact, a recent J.D Power study found that non-bank loan servicers “saw a 17% increase in customer satisfaction, while banks only saw a 4% increase.”
Payveris Chief Innovation Officer Marcell King said:
“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. 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 omni-channel 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 it’s 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 bill online, make payments using a variety of 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 “are practically inviting 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.”
Melissa Wolff, Vice President, Operations Support and Payment Services at WSECU, remarked:
“Our first priority is to improve the loan payment experience for members, making it easier and providing them more options. 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 centralized 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.”
King added:
“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. But in today’s lending landscape, financial institutions that succeed in payment modernization 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, recognized by Aite-Novarica as the ‘Best in Class’ industry leader for Biller Direct EPPP solutions.”
The solution is “powered by the Instant Payment Network®, the only integrated ecosystem of real-time digital bill presentment, payment, and money movement capabilities in the market.”
The Instant Payment Network is “currently trusted by numerous Fortune 500 companies, with more than 10 million consumers relying on it to make payments.”
For more details on this update, check here.
