A direct-selling business model refers to individuals or parties selling or distributing products directly to consumers in the name of their company. There are no other middlemen and distributors involved. A direct selling agent (DSA) sells or distributes goods on behalf of the institution they have partnered with. In the case of financial institutions, DSAs are responsible for bringing in more prospects, guiding loan applicants with their paperwork, and advising customers to choose the best loan product suited to their needs.
Importance of a DSA partner
Without a DSA partner, companies and institutions will be unable to outsource tasks. Companies will find it difficult to reach a large number of people and grow their businesses. Financial institutions like banks and NBFCs do not have the manpower to give one-on-one attention to their loan applicants and guide them. DSA partners fill in the gaps, resolve customer queries, and ensure that loan applications are sanctioned on time.
Challenges faced by DSAs
DSA agents are the first point of contact between companies and customers. They have to maintain the interests of both parties. Here are a few of the challenges that DSA loan partners face daily.
Customer inquiries are not handled efficiently
DSA agents work as mediators. They have to follow up with their company and assure consumers that their issues will be resolved as soon as possible. Customers tend to follow up incessantly with DSA partners to get their issues resolved quickly, but companies may not have the inventory or workforce to deal with them efficiently.
DSA agents often have to meet tight deadlines
Companies outsource several kinds of tasks to DSA loan agents like resolving customer queries, finding new potential customers, maintaining records, and so on. The back-and-forth nature of their job, like verifying their client’s documents, making a copy for their company, and logging it in their records, can be quite time-consuming. DSA agents may enjoy perks like flexible working hours, but they often have to stretch themselves thin to finish all their tasks.
Impossible targets have made it difficult to meet sales quotas
The sole reason why companies partner with DSA loan agents is to increase their business; hence they often set impossible targets to push agents to find more customers. Since their monthly payment depends on the number of products they sell, DSA agents do not get paid if the business is slow. However, it is not always the DSA agents’ slacking off. The market is saturated with tons of competitors vying to attract a small number of niche audiences.
There is a lack of updated resources for DSA agents
At the time of onboarding, organizations provide training modules and pamphlets that contain all the necessary information about their products. Companies may also conduct mentoring sessions with experienced DSA agents to guide newcomers on how to go about looking for prospects. However, companies often hand out outdated product details to their DSA agents, which hampers their sales. Banks and NBFCs do not always update their loan options with the correct information, which causes miscommunication and may lead a DSA loan agent to suggest the wrong products to their customers.
There is a growing distrust on matters of confidentiality
Until recently, there had been no qualms about DSA loan agents handling KYC identification documents, verifying them, and maintaining their records. A few months ago, the Reserve Bank of India expressed concerns regarding the confidential nature of these documents and whether contractual workers like loan partners should be allowed to handle them.
Financial institutions collaborate with DSA partners solely to cut down their workload and ensure that loan applications are processed on time. The DSA agreement is a binding confidentiality contract that ensures loan partners maintain the privacy of their clients. DSA partners are not allowed to disclose anything related to their client’s income or identity to others or misuse this information for their gain. DSA codes also reinforce these ideas, making sure that DSA agents respect their customers’ personal space.
Wrapping it up
If companies try to foster a healthy work culture, most of the challenges faced by DSA partners can be alleviated. For example, companies can set achievable targets and give bonuses if someone exceeds them, or ensure that they have enough DSA agents to handle the workload.
Reputed financial institutions like Andromeda Loans always have the best interests of their employees in mind. They integrate expert financial knowledge with cutting-edge technology for faster loan disbursals with minimal paperwork. They also offer updated information on all their existing and upcoming products, along with proper training modules at the time of onboarding. Such practices reduce a lot of the back-and-forth between agents and the company. It also enables DSA loan agents to experiment with newer marketing strategies to bring in more customers.