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How Banks are Adopting Crowd-Based Methods

By seamlessly integrating with a financial institution, WeGoLook brings higher loan conversion rates that are quick and more cost-effective by being part of the business process.

Here’s the truth -- Millennials, who experienced the Great Recession, treat their finances and financial institutions differently than do their Baby Boomer parents.

Millennials tend to have less trust in big companies, especially companies that handle their money.  

These Millennials are widely shaping market trends now that they've entered the workforce and are moving up in Corporate America.

Because they’re the ones making big financial decisions, the Millennial way of doing things is shaping innovation.

As such, wise businesses are following suit, or at least paying attention.

Millennials Love Crowdsourcing

As the original digital generation, Millennials love crowdsourcing.

What exactly is crowdsourcing?

According to IdeaScale, crowdsourcing is an engagement whereby organizations seek input from the crowd (including both customers, employees, and partners).

It’s mostly gathered through social media, but can also be obtained by other means such as online platforms and feedback mechanisms.

Since the way most people look for answers to their questions these days (financial or otherwise) is through a Google search, businesses must learn how best to relate to digital consumers.

That means asking questions and letting everybody answer--your boss, your colleagues, and most of all, your customers.

This way, decisions are based on the overall advice and wisdom from 'the crowd.'

I know, I know, it’s like a whole new world for all involved.

But, if you want to be successful and experience growth, it’s important to do what your competitors, customers, and colleagues are doing, and get on board with crowdsourcing.                                  

Crowdsourcing: Access Knowledge

Businesses are quickly learning that their consumers want their questions answered and they want them answered now.

Thanks Netflix and the immediate gratification society!

Businesses are tapping into the knowledge of their employees through crowdsourcing techniques.

You can do this easily by having employees answer questions that are posted by consumers on social media.

And large formal financial institutions are getting employees to answer everyday questions from consumers.

Crowdsourcing employee personalities and expertise to answer queries online is a great way to promote your brand, and many financial institutions are already doing this

Mint.com for instance, added a Q&A portal that crowdsources answers to user questions from professional advisors.

Particularly in a digital age, those with money to invest trust the opinions of professionals online, just as much as in-person. 

Consider that 90% of respondents from one survey said that all their buying decisions are influenced by online reviews.

This taps into the wisdom of the crowd from a consumer point of view.

IdeaScale had this to say in Crowdsourcing in Finance: “With crowdsourcing, financial institutions can connect with employees, customers, or stakeholders to find ideas that will help streamline processes, improve productivity, and identify new strategies that will help build the financial institution of the future.”

Crowdsourced Knowledge and Financial Service Delivery

Once you know what consumers want, you can adjust products or services to better suit their needs. Simple as that.

Crowdsourcing in the financial industry is productive because it increases transparency between consumers and businesses.

Ultimately, this allows for relationships of trust to grow. In an era where trust is so important, this is critical.

Knowledge is Power

In the consumer lending sector, financial institutions often hear from customers how long the loan process is.

More specifically, a customer would apply for a loan on a vehicle, bring the title to a brick and mortar branch location and work with a loan officer. Financial institutions also found this process lengthy and could see there were low conversion rates.

Enter…WeGoLook.

By seamlessly integrating with a financial institution, WeGoLook receives an order notification from the bank, immediately calls the potential customer to schedule the appointment at the customer's home or place of business, whichever is the most convenient.

If a notary is required, WeGoLook notifies a local Looker who is also a notary. The Looker will:

  1. Print required documents (POA, Lien Release, etc.) from their dashboard
  2. Meet with the customer, take required photos (customized by bank) for a condition report
  3. Execute the documents and scan them using app
  4. Deliver originals to FedEx

So for the bank’s finance sales team, they can view data the Looker collected in almost real time and fund the customer before even receiving the originals from FedEx. This allows for a much higher conversion rate that is quick (same day appointments) and more cost-effective.

Many banks are even finding the need for less branches, saving additional overhead when making WeGoLook part of the process.

Financial Risk and Beyond...

There may also be avenues to deploy crowdsourcing techniques in the determination of risk

More broadly, professionals across a networked digital crowd may be able to lend timely and relevant determinations for core business functions such as risk, lending, fraud, and many others.

There's no doubt that the sky is the limit for the relationship between crowdsourcing and banks.

The question remains however, how innovative will banks be in their embracing of this new trend.