How Should Non-Bank Credit Institutions Structure Their Payment Processes?
Issuing a loan is a one-time process. Repayments, however, continue for months.
That is why, for non-bank credit institutions (NBCIs) and other financial organizations, the key consideration is not just issuing loans. Making it easy for customers to repay them over the following months is equally important.
If customers have to search for their loan agreement number, visit a branch, or figure out which payment channel to use every month, the process creates an additional burden for both the customer and the organization.
A well-designed payment system should reduce this burden.
The Challenge Goes Beyond Accepting Payments
For non-bank credit institutions, several requirements lie behind the payment process:
- displaying the customer's outstanding balance accurately;
- linking each payment to the correct loan agreement;
- sending payment reminders;
- accepting payments through multiple channels;
- automatically tracking incoming payments;
- managing overdue payments more efficiently.
A payment of AZN 150 may seem simple to the customer, but behind it are a loan agreement ID, outstanding balance information, payment status, and accounting processes.
Where Do Customers Want to Make Payments?
Not all customers use the same payment channel.
Some prefer paying through their mobile banking app. Others use payment terminals. Another customer may prefer opening a link received via SMS and paying by card.
That is why offering just one payment channel may not be enough for a financial institution.
A more convenient approach is to give customers a choice:
Payments through a website, mobile app, banking app, payment terminal, or direct payment link.
Customers should be able to complete their payments through whichever channel is most convenient for them.
Practical Example: Monthly Loan Repayment
Imagine a customer whose monthly loan repayment is AZN 180.
A few days before the due date, they receive an SMS:
"Your monthly payment is AZN 180. Follow the link to complete your payment."
The customer opens the link, reviews their loan agreement details and outstanding amount, selects a card, and completes the payment.
Alternatively, the same customer can visit the financial institution's website, enter their loan agreement number, and make the payment.
Another customer may prefer making the same payment through their mobile banking app.
The goal remains the same:
Ensure that customers do not have to search for additional ways to make their payments.
When Is Internet Acquiring Useful?
If a non-bank credit institution has its own website or mobile application, card payment acceptance can be integrated directly into that platform.
In this case, the customer:
- Logs into their personal account.
- Views their outstanding balance.
- Selects card payment.
- Completes the payment online.
This model is particularly suitable for financial institutions with digital customer portals that want to keep the entire customer experience within their own platforms.
Internet Acquiring allows the payment process to remain directly within the existing website or application without redirecting customers to a separate payment channel.
Payment Reminders and Payment Options Should Work Together
Reminders play an important role in managing overdue payments at non-bank credit institutions.
However, simply sending a message saying:
"Your payment is due."
may not always be enough.
If customers still need to find the website, enter their loan agreement number, and look up their outstanding balance after receiving the reminder, the process becomes unnecessarily long.
A more convenient approach is to combine the reminder with a direct payment option.
For example:
"Your payment is due. Amount: AZN 180. Follow the link to make your payment."
This way, the reminder does more than provide information. It gives customers a direct way to take action.
Every Payment Must Be Linked to the Correct Loan Agreement
For non-bank credit institutions, one of the most important requirements is not simply accepting payments but ensuring that each payment is associated with the correct customer and loan agreement.
The customer's name, loan agreement number, and payment amount must be properly linked within the system.
Otherwise, the finance team has to:
- manually verify payments;
- match incoming transfers to loan agreements;
- investigate incorrect or incomplete payment information.
As the number of customers increases, so does the workload.
A properly designed payment infrastructure should automatically associate payment information with the relevant loan agreement or customer ID.
Which Payment Channels Can Be Useful for Non-Bank Credit Institutions?
Depending on the financial institution's business model, different payment channels can be used together.
Website and Mobile Application
Customers can view their outstanding balances and pay by card directly through their personal accounts.
Payment Links
Personalized payment links can be sent to customers via SMS, WhatsApp, or other communication channels.
Banking Applications
Customers can select the financial institution in their preferred banking app and make a payment.
Payment Terminals
An additional payment channel can be provided for customers who prefer cash payments or using payment terminals.
The most effective approach is not necessarily to choose a single channel, but to create a combination of payment channels that matches customer preferences and behavior.
How Can YIĞIM Address These Needs?
Non-bank credit institutions and other financial organizations can use different YIĞIM solutions depending on their payment scenarios.
With Internet Acquiring, customers can make card payments directly through the financial institution's website or mobile application.
With Fast Invoice Payment, institutions can send customers personalized payment links containing their outstanding balance information and manage payment reminders more conveniently.
The All-In-One solution helps consolidate payments received through different channels, such as banking applications and payment terminals, through a single integration.
This means the solution goes beyond simply accepting payments. The entire process, from displaying the customer's outstanding balance to completing the payment and linking the transaction to the correct loan agreement, can be organized more systematically.
Conclusion
For non-bank credit institutions, a good payment experience starts with one simple question:
How easy is it for customers to repay their loans when they are ready to make a payment?
If the process requires multiple steps, additional phone calls, or manual verification, there is an opportunity to simplify it.
When websites, mobile applications, payment links, banking apps, and payment terminals work together, financial institutions can build a payment process that is more convenient for customers and easier for the organization to manage.
