FULL TRANSPARENCY: ON CUSTOMER NEED

Charlie Lewis General News, Loan Origination Software, ORIGINATIONS

There is seemingly no (or little) quibbling about the definition of “customer need,” at least among those of us thinking and writing about it. A quick Google search produces multiple iterations of this one explanation with minor variations in verbiage: It is the need that motivates a purchase of a product or service.

Those of us offering products or services should have little difficulty defining our customer’s primary need in pretty simplistic terms. A car owner needs to get from point A to B. A smartphone user needs to be available or be able reach out to others where, when, and how they want. Lenders (customers of defi SOLUTIONS) need technology or outsourcing services to help them originate or service loans or leases.

Primary Need vs the “ities”

While the primary need of a product or service can be easily known and defined, and may be an ultimate factor that determines the chosen solution, there are additional influencing needs – price, design, functionality, compatibility (with other products) — and the other “ities,” the factors that are less easy to define, highly subjective, with lots of wiggle room in definitions, and, honestly, with more potential for a vendor to fudge. (And not in the good, chocolatey, double fudge-brownie kind of way.)

I’m thinking of the terminology that we sellers of products and services have overworked and exhausted to the point of impotence, the ity-four: scalability, configurability, reliability, and flexibility. Everyone uses them to define their products and services, but with such lack of granularity it’s not as if one can do a needs analysis and say, “Yep! Check that flexibility box. This one’s got it, too, and it’s just like the others.” It doesn’t work that way.

Problem and Solutions

At defi, we readily admit we were part of the problem in our industry and we are up for not only taking the blame but also taking the lead and talking more honestly and in more depth about our products and services as they relate to these factors. AND, kind of a big deal here because we’re make pretty major system changes to be introduced in Q4 2021 that will impact these factors, now is the time.

Where to start? How about a little history of defi. Forgive the digression. Hang with me here.

The defi SOLUTIONS you know and love today (or are just getting to know and will love), is the result of the 2019 merger of the former Sagent Lending (once part of Fiserv) and technology start up defi SOLUTIONS. The two companies were competitors in the loan originations and servicing technology space, arguably the number 1 and 2 solutions, depending on who you ask.

The two companies created solutions for different segments of the lending industry:

  • defi XLOS (the former Sagent Lending system) was developed primarily to meet the needs of the large and captive lender market that demanded stability and preferred a professional services model over the flexibility of a self-configurable system.
  • defi LOS (the heritage defi system) was born out of the desire to bring a loan origination system to small to mid-size lenders for whom a professional service model was cost-prohibitive and the ability to make changes, largely on their own and with minimal assistance, was imperative.

Today, the chasm that drove the need for development of these two solutions in these market segments has all but disappeared. All lenders are looking for stability and enhanced flexibility to scale their lending businesses. All lenders want the ability to quickly respond to business, market, and their customer’s demands. And, quite honestly (full transparency), defi needs to stop supporting, designing, developing, and investing in innovation for two separate products that do the same basic thing. (What company wouldn’t?)

Also, we’ve learned a lot, technology has evolved a lot, and in our expert opinion, it’s now or way too late.

Getting Started

defi SOLUTIONS provides configurable loan origination systems, loan management and servicing, analytics and reporting, and a wide range of technology-enabled BPO services. If you’re struggling with the limitations of your current lending technology solutions, take the first step in realizing the benefits of modern technology. Contact our team today or register for a demo.

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