Nolan Moran, Director of Sales and Partner Management at DataOceans, emphasized the importance of implementing a modern self-service portal for lenders. He said that such a move is crucial for improving borrower experience, reducing operational costs, and accelerating cash flow.
"Late payments don't just hurt revenue, they create operational strain, increase collection efforts, and weaken borrower relationships," said Moran. "A modern self-service portal removes these barriers, making it easier for borrowers to pay on time and freeing up your internal teams. Borrowers often miss payments due to friction in the process."
The statement by Moran on May 12 aligns with a broader industry effort to modernize payment processes amid ongoing challenges related to late payments. These delays often result in revenue shortfalls, increased operational strain, and damaged borrower relationships. Moran highlighted that outdated systems and cumbersome processes are significant factors contributing to borrowers' struggles with timely payments. This situation underscores the necessity for digital self-service solutions. According to the American Financial Services Association (AFSA), streamlining payments through digital platforms is becoming strategically essential for lenders aiming to reduce delinquencies and operational inefficiencies.
PayNearMe's 2023 research found that 47% of loan consumers believe digital reminders via text or email would aid them in paying their loans on time. This finding emphasizes the role of proactive communication strategies in enhancing timely payments. The study also revealed that borrowers increasingly expect payment processes to be as seamless and mobile-friendly as other digital experiences they encounter daily, reinforcing the need for lenders to upgrade their systems.
According to PayNearMe, automating payment workflows can significantly reduce servicing costs. While calls to a contact center cost lenders an average of $8 each, interactions handled via self-service cost as little as $0.10. This cost difference can lead to substantial annual savings for lenders, particularly those with high volumes of routine payment inquiries, supporting the business case for investing in modern digital platforms.
Moran serves as Director of Sales and Partner Management at DataOceans, a technology firm specializing in customer communication management and digital payment solutions. Based in Birmingham, Alabama, he has extensive experience in enterprise software, strategic planning, and digital transformation. Previously holding leadership roles at Precisely and Smart Communications, Moran is a graduate of the University of Mississippi.