Bespoke Loan Servicing and the Value of Personalization

The current economic landscape is prosperous but destitute. Thriving but languishing. Average American non-mortgage debt is at its lowest in five years, but personal loan interest rates remain high. Average household income is on the rise but nowhere close to the same rate as inflation.

Consumers have more opportunities to borrow, but only under the condition of spending anywhere from 105% to 120% of the standard price of the product or service. There are sometimes more cost-effective options available but require more cash upfront or over a shorter period of time. Many Americans simply lack the available capital to afford this but require the product or service nonetheless. 

Maintaining a good credit score while holding a moderate debt portfolio, typically by way of a credit card, is common, so a lot of borrowers take advantage of their ability to spread their expenses over a period of time and embrace the added interest rate as more of an inevitability than a redundancy. These circumstances vary to extreme lengths by the borrower and the product or service that is being financed. Because of this, loan servicing can no longer be templated. With more diverse personal loan portfolios come more unique circumstances that require their own curated solutions. This is becoming less feasible for lenders to manage and properly scale on their own. 

Servicing Solutions is a trusted partner in the lending industry and is well-versed in its nuance. We recognize that complacency is the number one prohibitor to a successful portfolio, so we are always striving to innovate our approach and adapt. Our team has over a decade of experience assisting companies with their primary and backup servicing needs, and have more recently expanded our offerings to help those in need of more general staffing and business process outsourcing support.

When you work with Servicing Solutions, we become an extension of your team. We challenge the status quo and provide bespoke services that are unique to you instead of just a repackaged version of something done for someone else, and we only do so once we have a deep understanding of your goals and processes. We collaborate with you to ensure our mission is shared and values are aligned. Without that, we are no better than the next transactional servicing experience.

The need for our boutique-style approach is at an all-time high. For many current trends, the only thing that is consistent about them is that they will fluctuate on a weekly basis. It is a challenge to manage the needs of borrowers in general, but overall volatility and uncertainty have been slightly more palpable recently. Providers need to work hard to remain abreast of sudden changes and respond accordingly. Doing so alone, especially when it is not your specialty, can be an operational headache. Processes like payroll management, IT, customer support, and logistics were all once traditionally handled in-house but are now commonly outsourced. Loan servicing should be no different now due to its advancing intricacy.