Around 90 percent of a loan lifecycle and engagement happens in the world of servicing, but no one really talks about it. From getting approved to taking a loan through the final stage of closing an account, servicing matters for customer experience and loyalty, ultimately driving business outcomes.

We’re joined by Matt Bivons, Founder & CEO at Canopy — an organization focused on helping lenders be better operators through their easily integrable loan management platform and cutting-edge suite of tools. Matt shares insights he’s gleaned from a myriad of experiences throughout a decade in fintech to show exactly why servicing matters.

Join us as we discuss:

• Canopy’s focus on exceptional customer service and deep expertise in student lending
• Call for adaptation and innovation to meet the needs of rapidly changing dynamics in FinTech
• Data migration and scalability: careful planning and gradual expansion

Canopy’s focus on exceptional customer service and deep expertise in student lending

Most lending services today are a commodity — a three-year loan is a three-year loan. Canopy is here to transform that commodity through flexible lending models.

The nitty-gritty cadence of servicing may not be sexy or commercially appealing, but it is essential to a well-oiled customer service experience. Canopy connects into integrations from payments to issuer processors to KYC, all to support operators in becoming better lenders.

“When I think about servicing, I'm thinking about any company that has to account for its customers making payments and needs to service them,” Bivons says. 

Canopy exists to be a flexible, fungible option for banks and FIs to launch innovative lending products without sacrificing customer service or relying on 50-year-old processes.

Student lending as a turning point for innovation

“My thesis is that every FinTech out there moves from a mono-product world to a multi-product world,” Bivons explains. “Banks have been there for a while, which extends the LTV of the borrower, but FinTechs are still somewhat a one trick pony.” 

FinTechs must move beyond interchange and get into lending to sustain growth and reach their valuations. One of those lending categories is student loan services, a traditionally tricky space covered in red tape. If any loan category needs innovation, it’s student loans. Canopy applies special expertise to such cases.

Call for adaptation and innovation to meet the needs of rapidly changing dynamics in FinTech

“We were one of the first companies to work with Plaid in underwriting, and be able to say, ‘Oh, this is Jeff, he went to this college, here's his repayment data, he's about to reach this other milestone in his life, we should instantly approve him for a mortgage or instantly approve him for a personal loan,’” Bivons says. 

Though simple in theory, this practice proves difficult with products in different servicing stacks. With data separated as such, even if a customer has been making payments for years, they will be seen as a new customer in the system. 

“Having one system that has universal data is a major advantage. That's why it was important for us to be able to support multiple product constructs out of the gate,” Bivons continues.

All of the data that supports loyalty and lender-borrower relationships exist at the service layer. To access that loyalty, we need cohesive data organization and integration.

FinTech’s promise

FinTech’s promise is rooted in creating a better customer experience. Having access to real-time data is a cornerstone of that pursuit. If we don’t know the customer inside and out and leverage that knowledge, we have next to nothing keeping them with us. 

“I'm excited for the next 10 years for exactly that — which is to be able to utilize data to make instant product offerings and reduce friction. That's FinTech at its best: Facilitating better life experiences,” Bivons says. “The home you live in, the car you drive, the school you go to. Let's actually see that all the way through,” 

Data migration and scalability: careful planning and gradual expansion

Launching lending products in-house shouldn’t take away from what a brand does best. Canopy helps brands scale and expand serviceability without pulling them away from their strong points. 

“If the customer doesn't feel like they're getting passed around to different providers, and the brand captures more economic value than their losing, it's a no-brainer to bring it in-house,” Bivons says. 

With everything bundled under the same umbrella, there are no fees to pay third parties and less risk of making customers feel yanked around. 

“Being able to give transparent, real-time information — that seems like table stakes — is challenging for some of the largest issuers in the world,” Bivons shares.

Consolidating a borrower's information and providing access to that information at any time, mid-cycle or otherwise, aids in smoother interactions and frictionless service.

Easier said than done, especially if we’re talking about a long-established institution embedded in old procedures. Bivons’ team specializes in helping such organizations make that change.

“Canopy works with several top 25 issuers on this exact problem. It's a combination of technology and people. It takes some of our solution architecture team to actually help, it’s not just automated,” Bivons says.

These changes start small, with gradual steps towards expansion and total integration. With the right support and planning, the sky's the limit for creating servicing systems that cater to new customer expectations and shifting FinTech dynamics. Canopy is here to provide that.

Stay tuned for new episodes every week on the Leaders in Lending Podcast.