LifeBank Microfinance Foundation
An Oradian customer success story
How one of the largest microfinance institutions in the Philippines transformed customer experience (CX) with simple and inexpensive SMS messages to its clients.
- Customers feel more confident, protected, and secure
- Fewer queries from clients frees up branch staff
- Opportunities for fraud reduced
With a focus on advancing sustainable development in both rural and urban areas, LifeBank Microfinance Foundation is committed to breaking the chains of poverty in the Philippines. The country’s third largest MFI has more than 500 branches across Luzon, Visayas, and Mindanao, and serves almost half a million clients.
In 2019, LifeBank undertook a project to provide its clients with a better, more transparent service by implementing Instafin Messaging. This service empowers organisations which use Oradian’s Instafin core banking platform to communicate with clients via SMS.
The COVID-19 pandemic in 2020 brought severe lockdowns and a widespread need to eliminate unnecessary face-to-face contact. This lent a new urgency to LifeBank’s project to replace in-person exchanges with electronic communications.
Using Instafin Messaging, LifeBank was able to quickly set up a series of automated SMS notifications to its clients’ mobile phones. These confirmed any transactions made and alerted them to missed deadlines. The messages included:
- Confirmation of a deposit into their account
- Confirmation of a withdrawal from their account
- Confirmation of a repayment made on a loan
- Notification when a loan account is approved
- Notification if they miss a repayment
Happily, not all the messages LifeBank sends are about money! They also use Instafin Messaging to wish each client a ‘Happy Birthday’ on their special day.
LifeBank opted for a phased roll-out of the service. The pilot phase involved enabling messaging for all new clients and for existing clients enrolling into a new loan cycle. The reaction from clients was extremely positive and Instafin Messaging was quickly rolled out to other segments.
Today, around 70% of clients are benefitting from Instafin Messaging, and around 3 million messages are sent out each month. As a result:
- Customers feel more protected and secure. For example, they have the reassurance of knowing when repayments made through a field officer appear on their account.
- The increased transparency reduces the number of queries made by phone or in person at branches, freeing up staff to spend their time on tasks which add value.
- Notifications can make a positive impact on key metrics such as portfolio-at-risk (PAR) and portfolio-in-arrears.
- The notifications help reduce the potential for fraud.
LifeBank have used Instafin Messaging to transform CX for what might seem a surprisingly low cost. Oradian customers who use Instafin Messaging find the charge can easily be absorbed, or passed on to their clients, or offset by the operational savings which accrue.
Oradian and LifeBank continue to work together to develop the service through monthly review sessions to look at how the service can be further optimised, and explore what other messaging options might be valuable to their clients.
About Instafin Messaging
Instafin Messaging enables Instafin subscribers to send messages directly to their customers mobile phones from the Instafin dashboard. Real-time communications improve portfolio performance and improve the customer experience and customer loyalty.
Instafin Messaging allows a wide range of messages to be automatically delivered:
- REMINDERS such as upcoming payment dates, repayments overdue.
- CONFIRMATIONAL – repayments made, funds withdrawn, loan disbursement received.
- INFORMATIONAL such as welcome messages, birthday greetings, and marketing messages.
Instafin Messaging can also play a simple but vital role in your digitalisation strategy by helping clients to get used to receiving financial information through a digital channel.