Enhancing the Borrower Experience
First Help Financial Partners with Payix to Enhance the Borrower Experience
First Help Financial (FHF) is a highly innovative niche auto lender and loan servicer headquartered outside of Boston, MA. FHF is one of the fastest growing and most diverse companies in the US as recognized by Forbes. Their mission is to provide auto loans to the underserved and care for customers and partners with exceptional service. To fulfil this mission, FHF’s operations are constantly tuned for growth and performance.
To further reduce delinquency and default risk within their portfolio, FHF set a goal in 2018 to create a frictionless payment experience for their customers, including an innovative smartphone application to meet borrowers where they prefer – their phones. To this end, FHF selected Payix Incorporated, a Texas-based consumer Financial Technology (Fintech) solutions provider. FHF was able to leverage Payix’s unique white label product suite including its borrower-facing Android and iOS natively mobile applications, online borrower portal, Interactive Voice Response System (IVR), and an SMS (text-pay) solution. With the addition of the Payix Client Administration Portal (CAP) and native Loan Management Integration, FHF had what it felt was a comprehensive toolset for executing their collections strategies. “We constantly scan the market for solutions to make us better and quickly moved forward once we found Payix. Their borrower-facing solutions were engaging and customizable but also unlocked a source of data and insight that we find necessary to our culture of continuous improvement,” said Lucas Oliveira VP of Operations.
FHF was able to leverage their expertise in data mining to analyze the data Payix provided on borrower usage to gain new insight into their customer’s preferred methods of payment and communication. FHF key learnings included:
- Their customer base was not entirely driven by collector-initiated contact, but rather by frictionless contact creating ease of payment and communication. Payix, additionally, now accounts for 4 of every 5 alternative method payments (chart below).
- Customers preferred more lines of communication as opposed to more traditional means like inbound and outbound calls only. FHF was able to increase their customer interactions per minute ratio by 50% utilizing Payix tools v traditional inbound calls (chart below).
- When given the option, borrowers would prefer to pay their loans utilizing their debit card over an electronic or paper check; consequently, guaranteeing funds and removing the “lag” and uncertainty with check payments.
In addition to the learning above, after deploying the Payix software suite to their borrowers, FHF was able to reduce total collections expenses by approximately 15% while at the same time improving their delinquency and default metrics. FHF was also able to dramatically improve the overall borrower communication experience and help drive positive interactions. FHF customers could be met where they preferred in the communication and payment cycle, a key differentiator for the company and borrowers alike in this ever-changing environment. Five of the top eight Inbound Call Reasons were directly addressed by the Payix suite (list below). In the two years since engaging Payix, FHF has been able to deploy more resources into severely delinquent accounts and loss mitigation rather than field generalized phone calls.
FHF’s CEO, Pushan Sen Gupta, said “The addition of Payix’s white-labeled tools has positively impacted our collection strategies; our collectors can now tend to other duties with the reduced amount of inbound calls. And best of all, we now have a customer service agent installed on our borrower’s phones 24/7, 365 days a year.”
First Help Financial | Payix Partnership Key Benefits
- Customer Empowerment: The Payix-hosted, white-labeled customer experience puts all account and repayment information in the hands of customers 24/7 – a substantial value-add augmenting FHF’s existing call center which is open a standard 10 hours per day and closed on Sundays.
- Customer Behavior Insight: Engaging FHF’s customer base with the Payix borrower-facing platform has yielded rich, actionable borrower related behavioral data that speaks to engagement preferences which enhance future portfolio servicing strategies.
- Borrower Communication: FHF has effectively adopted the ability to increase contact rates utilizing the Payix white-labeled messenger service embedded in the product suite. This communication channel has allowed FHF to automate and enhance non-verbal communication as an efficient tool to reduce delinquency and increase Right Party Contact (RPC) rates.
- OpEx Reduction: To date, implementing the Payix self-service infrastructure has reduced FHF’s customer service expenses by 15% and allowed for agent concentration on more difficult accounts.
Payix offers white-labeled products and real-time loan management system integration, helping lenders and loan servicers improve their ability to engage with borrowers and collect payments.
Our roots are in lending and collections so Payix understands what it takes to execute an effective borrower communication and collections strategy. Having access to engaging and easy-to-use borrower-facing digital tools is a must for today’s lenders and loan servicers. Our powerful lender-branded product suite comes from our deep understanding of lending and payment processing, as well as a strong commitment to quality and client satisfaction. Visit us at www.payix.net to learn more or schedule a custom product demonstration.