Establish a Firm Credit foundation

Solid Credit foundation

In order to be part of the privileged credit lending sector, the relevant credit financing firm has to position itself as a dominant player with beyond-words cash reserves. One of the high barriers to entry, under Michael Porter's 5 Forces model, is Intense Rivalry - unhealthy competition against lending and financing institutions. The constantly regulations & audit processes made work more complex and requires deep level of understanding in this lucrative industry. Financial institutions usually engage various aspects to aid in maintaining such credibility and prevail under dire circumstances - Professional legal advisers, Inter-bank cooperations, Credit risk analysts etc. Moreover, over the years, online lending platforms are booming out of nowhere and increasingly sophisticated which can be a major threat to offline banking corporations. What would one do?

Credit Financing schemes available

If the credit financiers want to stand out among each other, attractive credit financing schemes should be the way to increase market share but remembering not to compromise revenue and make losses for an extended period of time. In the Credit Sphere, there are two main types of financing options mainly; Corporate & Retail lending. This two types further breakdown into several other loans such as Collateral & Non-collateral, Car financing, Mortgage loan etc. The most ideal credit lending facilities is based on the consumer's needs and the sales team will suggest the most rewarding ones to them. However, there are competitions among banks hence at times, promotional rates & incentives are way to draw attention before conversions which is taken care by the Marketing segment.

Credit ring healthy Practices

Once the newly formed credit financing agency has gotten approval from the relevant authorities, it will be part of the "Credit Ring" society. In this ring, the main purpose is to help one another in regulating the industry and fish out "Black Sheeps" who are trying to stir up troubles. The problem could be so bad that government interventions occurred which significantly detriment the whole lending infrastructure or even being forced to undergo reformation. It is clearly a wastage of resources and time taken to justify certain decisions. To make matter worse, it is not going to be a simple matter if the auditors chose to bring 'grey' areas to High Court. Hence, this shows the importance in formulating a healthy Credit Lending arena that is wonderful for all creditors.

Showcase creditors Key competencies

In this rapidly transforming Credit world, creditors ought to buck up by introducing new marketing strategies to remain competitive. And also, challenge others when new policies are being formed or counter attack those who tried through unlawful means. One of the most extraordinary advancements in this society is the Internet! As of current lending practices, there is even an online lending establishment namely the Lender Platform, consisting of online borrowings from various associations and this made offline lending more competitive. Instead of undergoing the hassle in paperwork, why not submit everything online with a few clicks and the agents will assess the profiles and allocate priorities accordingly. No doubt that online banking is gaining sophistication and the offline banks have to come up with solutions to go around else just join them. It is an uphill task as regulators have to think in a different mindset as the online segment is fairly new to them as well. Who knows, perhaps, traditional banking is deemed obsolete!