When it comes to lending, the competition is stiff, and you want to capture as much of the market share as possible. However, you want informed borrowers to contact you because an informed borrower is going to make the best efforts to pay in full and on time. Have you considered starting a blog linked to your site? Check out hosting companies such as Hosting Kingdom that have user-friendly blogs you can set up yourself in a single day and begin giving your potential customers the information they need to choose you as their lender. Even so, the purpose of your website should be to inform, not to sell. Keep that in the back of your mind as you read through these four reasons every lender should build an informative website or blog.
1. Helping Your Customers Make the Right Choice
So many lenders simply want their customers to sign on the dotted line. Not only is this totally unethical but that consumer may not be making the right choice for his or her needs. Most consumers don’t know about their options when looking for a loan and so it is up to you to help them make the right choice. For example, when it comes to payday loans, your customers should completely understand the advantages and disadvantages before applying, and if they do, you can be better assured that they will be making a choice that is right for them before they apply for that loan.
2. Government Regulations – Transparency
Per the Truth in Lending Act, there are very strict regulations which lenders must adhere to. Transparency is one of those regulations they take very seriously, indeed. This is especially the main focus after the market crash in 2008, which led to hundreds of banks going under. They may not have all taken part in less-than-ethical lending practices, but they took the hit as if they did. The crash led to the Great Recession, so to put it bluntly, no one had money! Businesses and consumers were not depositing funds and many people closed their accounts. You can use your website to offer transparency in every aspect of lending.
3. Trust Is a Key Factor
When consumers are looking for a loan, rates will be important, as will transparency, but one of the most important things they look for is trust. An informative website that details both the upside and downside of borrowing money will gain the respect and trust of consumers. They will trust a lender that gives them all the information they need to make a wise choice before getting in over their heads.
4. Ensuring Timely Payments through Education
Finally, if a consumer has made the right decision because you gave them the information they needed to choose the loan that was right for them, you will see that payments are being made timely and in full. Typically, borrowers who don’t understand all the stipulations are the ones who don’t pay. Those are the borrowers who know they need money but don’t understand they might have better options – loans which carry lower APR and are easier to repay.
In the last analysis, an informed borrower is better able to make the right choice and your financial institution has a better chance of being repaid. That’s the bottom line, which you’ll agree is a very good reason to set up an informative website.