As companies continue moving to more paperless operations as a way to tighten budgets and improve operational efficiencies, a recent consumer finance survey indicated that when it comes to loan payments, paper forms of payment still outrank electronic payments, although the margin is slim. BillingTree conducted the annual survey of lending institutions in the U.S. as a way to understand the usage of payment technology solutions and the priorities of decision-making consumer lending professionals.
The survey asked, “To the best of your knowledge, what percent of your institution’s loan payments are currently made by consumer lending customers using each of the following methods?” Respondents reported that over a third of loan payments (38 percent) were made electronically via e-payment (25 percent) or credit/debit card (13 percent). Paper checks and money order payments (41 percent) exceeded electronic transactions by a thin margin, with cash still representing 11 percent of all payments.
As the industry navigates a shifting business and regulatory environment, the survey results will help to establish benchmark trends year-over-year. To read more of the survey results, you can access the entire 2015 Consumer Finance Business Strategy and Technology Survey report here.