Make a purchase via QR code, open account online, apply for a loan online – these are just some of the examples of new value-based and needs-based segmentation models implemented by banks. It offers SMEs variable pricing and service options across products, and support through multiple channels. The banks are harnessing innovation to address a real customer need or to alleviate internal challenges.
“During recent year we have launched consumer online lending, online accounting for individuals and also SME lending. All of them are without human involvement,” said Arpine Mayilyan, Head of micro and small business lending division at Ameriabank.
Automated scoring system is using automatic integration of a number of public and private databases. The system makes it possible to provide loans to SME clients without visiting the bank on the basis of data from the scoring system, in the amount of up to USD 20 thousand. The system allows Ameriabank customers to receive an online loan amount on a current account / card. Non-bank customers benefit by obtaining credit approval based on the scoring system online and visit the bank only for the purpose of identification, concluding contracts and obtaining amounts.
“We tried to listen to the demands of our customers and create products in response to their needs. Neither Armenia nor the region had a fully automated mechanism for lending of SMEs without the intervention of the human factor,” said Mayilyan.
According to Mayilyan, focus group discussions with SME clients were held and surveys were conducted among loan officers. As a result, it turned out that the lending process took a very long time. The client was forced to stop working process in order to visit the bank, a collection of documents was required, and ineffective communication between the bank and the client was taking place.
The share of SME loans in Ameriabank’s portfolio has grown from 0.3% to 6.3% for 5 months. The share of loans issued online by the scoring system in the total number of consumer loans reached 93%. The client base of SMEs was by 60% up within 5 months. The share of loans issued online via the scoring system in the total volume of consumer loans amounted to 74%.
InecoPay is an exclusive cashless mobile payment system in Armenia. The system can be accessed via InecoMobile application. The following non-banking services are offered for customers: product purchase by scanning QR code; Engaging new customers by providing service to the rapidly growing pool of over 100 000 InecoPay users; Promoting and ensuring sales growth by updating customers with company’s news and offers through the application and the website; Receiving cashless payments the same day.
InecoBank allows customers to register and open accounts online, switch to one of our account plans; Login with touch ID or face ID; Attach all (even another bank) cards and replenish all accounts (current, card and savings); Get instant loans, deposits and cards; Make dozens of transactions and instant payments; Get 24/7 support.
“We offer non-users to attach their bank cards and make payments. It is a secured feature especially for those who have limited access to mobile banking in their bank, or have bad customer experience, so they download this app, register and attach their cards. Even though they are not our full customers they will have free access to all the services. Actually, while getting aware of our customer experience they start expending the usage of our products and become our full customers,” said Nairi Adamyan, Strategist and Product Manager at InecoBank.
“This system not only helped us to upgrade services to existed customers but also helped us to attract new ones,” he added.
Fully digital customer experience results within two years for InecoBank looks further: online deposit ratio – 35%; online consumer lending ratio- 46%; active online users – 45% and digital transactions – 72%.
Expanding digital channels was also in the focus for Russian Tochka Bank.
“During recent year we became more digitalized in opening accounts, we added bunch of services for those who are doing international businesses, also for people involved in HoReCa sector, launched special offers for taxi drivers, so it was more like segmented offers,” said Boris Dyakonov, Co-Founder and Chief Executive Officer of Tochka Bank.
In addition, Tochka Bank launched other non-traditional services, like offering employers to conduct background checks on job candidates: if the candidate is a sole proprietorship, collecting information on financial disputes with counterparties, bankruptcy or violations of the law, having problems with legislation, checking the credibility of the candidate and giving an assessment according to their own methodology and getting feedback from the last 3 workplaces, by contacting candidate’s former employers.
Tochka Bank also started offering licenses on selling alcohol and bonus cards, offering clients to create electronic cards with discounts and bonuses, in order to attract new and maintain old purchasers.