In each market segment of competition, a large number of companies offering the same or similar products increases competition. The same mechanism applies to the financial market and non-banking companies.
However, there must be many very different factors and mechanisms for this to happen. Thanks to this, the quality of their services has improved significantly.
Law and competition of non-bank companies
Improvement in the quality of non-banking services is caused by two factors. Firstly, the recently introduced anti-usury act began to regulate more precisely the amount of interest charged as well as the amount of penalties for late repayment. Another issue is the very extensive market, which currently has about 400 non-banking companies.
The increase in competition between market players for the same customer in a straight line translates into either a decrease in price or an increase in product or service quality, and in some cases even a simultaneous increase in quality and a decrease in price.
Increasingly, we find non-bank loan offers for amounts up to several dozen USD, which can be repaid up to 60 days after signing the contract. More and more Good Lender are also offering a special product, the first loan for free, to attract new customers.
Customer feedback on non-banking companies
Customers looking for loans are increasingly looking to the internet, being aware that many companies are emerging that have capital, but do not want to invest it in the arduous building of a network of regional retail outlets. It is enough for them to advertise a loan online and to prepare an efficient mobile application along with a website that will be able to handle all the interest in such a loan.
Convincing customers that a given offer is better than competing offers is not easy, because the customer is rational and aware today – he can quickly and skillfully compare different companies and products, so he knows quite quickly which quick loans are quite cheap. Many people also use information such as the opinions of other customers about a given company, or check the ranking of Good Lender to see if it is worth using it.
It is not easy to manipulate advertising or commercial messages, because in the world of loans you can quickly see how much a given loan will cost in a particular case. The fight for the customer is most effectively won by reducing the interest rate on such a loan or by postponing the deadline for the customer to make the first payment from a month to even three.