Fintech peer-to-peer lending (also known as p2p or p2pl) is all the hype in Southeast Asia right now. The region is populated by more than 650 million people, who mostly do not have access to proper banking or financial services, making peer-to-peer lending a welcomed financial safety net, especially in countries such as Indonesia, Singapore, Malaysia, Vietnam, and the Philippines. With that in mind, it can be assured that the market growth of peer-to-peer lending will just grow bigger from here. However, those rapid growths will face challenges such as:
- 1. Regulation from the governments,
- 2. Increased costs to handle huge amounts of customers,
- 3. Increased needs for proper customer engagement,
- 4. Generating and engaging leads daily, which sounds simple but requires a lot of company resources in terms of time, costs, and pure effort.
Understanding the challenges might be the first step to prepare for the incoming problems in the future. However, companies should also prepare the solution for these future problems. One solution that is available now is the utilization of AI for multiple purposes in the business process. This blog will delve into the different ways through which AI could be useful in keeping up with the rapid growth of the peer-to-peer lending industry.
1. Big Data Management
Big data has revolutionized value generation for many industries, including peer-to-peer lending. With the amount of data that is generated right now, companies without access to AI systems to process data will struggle to keep up with rapid development in the market and the industry. By using AI to process data, companies now can easily collect and map out consumer information such as their habits, likes and dislikes, activities, and personal preferences in a short period.
This information is a disruptive tool that allows peer-to-peer companies to elevate their business processes, such as supporting more accurate underwriting decisions, better assessment of prospective borrowers to provide accurate and fair credit pricing, and faster and more accurate decision-making processes based on data. Additionally, with Machine Learning Technology, AI will improve over time, which means it will be able to keep up with the rapid growth of the peer-to-peer industry.
2. Business Automation
One of the pain points of business is the resources and effort it takes to finish repetitive and mundane tasks. For peer-to-peer lending companies, it is even worse since they have to deal with endless procedures and verification processes. Fortunately, AI automation is more than capable of dealing with all of these repetitive tasks with ease, efficiently, and effectively, especially concerning customer service. Even better, they often result in great output since AI systems are capable of consistently operating with best practices.
With most tasks, procedures, and verification being automated, it frees up the company’s resources to focus on strategically valuable tasks. For example, by using WIZ.AI’s Talkbots to automate collection and collection reminders, collectors could redirect their efforts to focus more on follow-up tasks and customer retention.
Recommended Read: How AI can Boost Results in Debt Collection
3. Lead Generation & Customers Outreach
AI is not only useful for automating manual tasks. Advanced AI systems could even be used as a tool to reach and engage customers. Through technologies such as conversational voice AI, peer-to-peer lending companies could automate their call centers to engage customers at scale and at lower costs. By automating lead generation and customer outreach with AI-powered systems such as WIZ.AI Talkbots, companies could also redirect the efforts of their call center agents to deal with more important tasks such as closing deals or taking care of high-valued customers instead of making calls to collect customers’ information, or answering FAQ which could easily be done automatically.
Another benefit of integrating voice AI systems in call centers is the consistency that comes with it. For lead generation activities, it means the company could consistently generate a huge amount of high-quality leads. As for customer outreach, it means that voice AI Talkbots will help companies engage more customers and consistently give them better customer service and customer experience, thus ensuring customer loyalty and future business potential.
4. Risk Mitigation
As mentioned before, utilizing AI to take care of data processing helps companies to better plan their strategic moves, including how to deal with potential risks. Not only that, with AI automation, companies would have a tool to deal with unexpected situations.
In the peer-to-peer lending industry, lenders and borrowers always need a reliable way to contact the companies either to find information or file complaints, which are usually done through phone calls. In unexpected circumstances, the call center might be flooded with calls, and the company will not have any choice but to bolster the call center capacity. However, training new call center agents takes too much time. Even worse, most of the time, after the crisis has passed, companies still have to take care of additional manpower, which would be costly for an extended period. On the other hand, with AI-based automated systems such as WIZ.AI’s Talkbots, companies could flexibly increase and decrease the number of bots according to their current needs.
5. Increase Efficiency and Reduce Cost
Integrating AI into the business process is a great way to increase efficiency and growth, and for reducing costs. By automating most business processes, companies can streamline their operations without sacrificing productivity. With AI systems, companies would have access to more accurate and real-time data, which helps companies to make more accurate forecasts, budgeting, and strategic planning to increase efficiency in every aspect of the business.
The benefits of integrating AI into business are undeniable. It is only a matter of time before AI automation is integrated into every industry for various business aspects. Peer-to-peer lending companies are privileged enough to be able to integrate AI into their business early on. Therefore, as the system gets more advanced, early adopters will be more prepared and have sharper competitive edges in terms of familiarity and understanding of AI technology, also where and how AI technology will develop, and how to utilize technology for the benefit of their business.
Recommended Read: AI Technology in Finance: From Concept to Implementation
How can Peer-to-Peer Lending Businesses Utilize WIZ.AI?
WIZ.AI, with its AI-powered solutions like Talkbots and chatbots, can be of great help to the peer-to-peer lending industry in Southeast Asia. WIZ.AI can aid this industry by automating tasks like reminding customers about their dues via multiple channels and collecting payment.
WIZ.AI’s voice AI solutions can interact with your customers in regional languages like Bahasa Indonesia, Bahasa Melayu, Singlish, and other regional languages in Southeast Asia. These bots can engage with your customers by understanding their behaviors based on context, tone, and intent. With WIZ.AI, you can harness the power of Artificial Intelligence and attain scalability, improve customer experience, enhance productivity, and offer support based on legal requirements. Through this, peer-to-peer lending businesses can achieve their payment collection KPIs efficiently.
Want to explore more on how WIZ.AI’s intelligent solutions can be the perfect match for your peer-to-peer lending business? Talk to one of our experts today!
