In this episode of Accrued a FinTech Confidential series presented by LoanPro, hosts Tedd Huff and Colton Pond speak with Alex Rhodes, the Chief Operating Officer of Best Egg. Alex shares insights into the strategies that have made Best Egg a strong player in the personal finance industry.

Throughout the discussion, Alex emphasizes how the company focuses on customers, improves efficiency, and adapts to changes in the market.

Best Egg has grown significantly since its start in 2014. Alex explains that one of the key factors behind this growth is the company's commitment to understanding and serving its customers. By listening to what borrowers need and being flexible with repayment plans, Best Egg has been able to keep its customers satisfied and loyal.

This focus on customer experience has helped them create services that meet the needs of people from different financial backgrounds.

One of the standout points Alex mentions is how Best Egg adjusted during the COVID-19 pandemic. During this time, many people faced financial challenges, and the company responded by offering flexible repayment options to help borrowers manage their loans. This approach not only helped customers during a difficult time but also strengthened the relationship between the company and its clients.

Alex also touches on how Best Egg uses technology to improve both the efficiency of its operations and the experience of its customers. For example, they have created self-service tools that allow customers to manage their loans online. This means borrowers can adjust their payments or check their account details whenever they need to, without having to contact customer service. By making the loan process easier and more convenient, Best Egg has increased customer satisfaction while also reducing costs.

Looking forward, Alex predicts that data and personalization will play a big role in the future of lending. He believes that companies will need to use customer data to offer more tailored services that meet individual needs. This shift could make the lending process more efficient and more responsive to what customers want. While some may see this as a challenge, Alex views it as an opportunity for Best Egg to continue to grow and succeed.

Best Egg's focus on its employees also contributes to its success. Alex explains that the company works hard to ensure that its staff feels valued and supported. By keeping employee turnover low, Best Egg maintains a workforce that is experienced and dedicated to providing excellent service. This, in turn, benefits the company’s customers, as they receive help from knowledgeable and motivated employees.

Throughout the episode, Alex also discusses how the company uses advanced technology like artificial intelligence (AI) to improve its operations. For example, AI can help streamline certain tasks, allowing employees to focus on more important aspects of their work. This use of technology not only improves efficiency but also enhances the overall experience for both employees and customers.

Alex wraps up the conversation by reflecting on what lies ahead for the lending industry. He believes that personalization, the effective use of data, and a continued focus on customer service will be key factors that separate successful companies from the rest. While there will always be challenges, Best Egg is well-positioned to continue meeting the needs of its customers and growing as a company.

In summary, this episode provides a thorough look at how Best Egg has managed to succeed in a competitive industry. By focusing on customer experience, using technology to improve efficiency, and investing in its employees, the company has built a strong foundation for future success. As the lending industry evolves, Best Egg’s ability to adapt and remain customer-focused will likely keep it at the forefront of personal lending.

Key Highlights

Customer Retention Through Flexible Loan Options

Offering flexible repayment plans and easy self-service tools helps build long-term customer loyalty. This approach makes the borrowing experience smoother and more personalized, keeping clients satisfied.

Staying Competitive in the Personal Lending Market

Rather than focusing solely on interest rates, providing a streamlined service and easy management tools sets lenders apart. Flexibility in repayment options adds another layer of value for borrowers.

Artificial Intelligence Enhances Efficiency in Lending

Using AI to handle repetitive tasks allows employees to focus on improving the customer experience. This approach boosts operational efficiency while ensuring that borrowers receive better service.

The Role of Data in Shaping Future Lending Services

Personalized services driven by customer data are becoming the norm. As lending companies leverage data insights, they can offer more tailored financial products that meet the specific needs of individual borrowers.

Adapting Loan Repayment During Financial Hardships

Introducing flexible repayment options during crises, such as the COVID-19 pandemic, shows the importance of responding to customer needs. This adaptability strengthens borrower relationships in uncertain times.

The Rise of Self-Service Tools in Personal Finance

Self-service portals give borrowers control over their loan management. These tools make it easier for customers to adjust payments, check balances, and manage accounts without waiting for assistance, offering a faster, more convenient experience.

Employee Satisfaction Drives Better Customer Service

A company’s success often relies on keeping employees motivated and reducing turnover. Supportive work environments lead to knowledgeable, committed teams that deliver high-quality customer service.

Customer Feedback Shapes Financial Product Development

Active engagement with customer feedback ensures that lending services meet the real needs of borrowers. Adapting products based on this input keeps services aligned with customer expectations and market demands.

Combining Operational Efficiency with Excellent Service

Streamlined processes and the use of technology help maintain a balance between efficiency and customer satisfaction. By reducing the need for manual intervention, companies can lower costs while still delivering top-notch service.

Preparing for the Shift Toward Personalized Lending

As the lending industry evolves, personalization and data-driven products are becoming increasingly important. By offering more tailored solutions, lenders are positioning themselves to meet future borrower expectations.

Takeaways

1️⃣ Maximize Borrower Satisfaction with Flexible Payment Plans

Offer your customers flexibility in repayment options to increase satisfaction and build loyalty, especially during challenging financial times.

2️⃣ Leverage AI for Streamlined Operations

Implement AI to handle routine tasks, allowing your team to focus on customer-facing activities that enhance service and efficiency.

3️⃣ Use Self-Service Portals to Empower Customers

Set up self-service tools that allow customers to manage their loans independently, reducing the need for constant customer support and improving convenience.

4️⃣ Turn Customer Feedback into Product Improvements

Actively gather and apply customer feedback to fine-tune your products, ensuring they meet real needs and stay competitive in the market.

5️⃣ Keep Your Workforce Engaged to Boost Service Quality

Prioritize employee satisfaction and retention, which leads to a more motivated team that delivers better customer experiences.

Links:

Alex Rhodes

LinkedIn Profile: https://www.linkedin.com/in/alex-rhodes-b789926/

Best Egg

Website: https://www.bestegg.com/

LinkedIn: https://www.linkedin.com/company/bestegg/

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About:

Guest

Alex Rhodes:   Alex Rhodes: Alex Rhodes serves as the Chief Operating Officer (COO) at Best Egg, bringing over 20 years of experience in business strategy and operations. With a career that includes leadership roles at financial giants like Barclaycard and Bank of America, Alex has a deep understanding of the lending industry. At Best Egg, he plays a key role in driving the company's customer-focused initiatives, enhancing operational efficiency, and leveraging technology to improve both employee and borrower experiences. Alex’s expertise lies in creating scalable solutions that meet the evolving demands of the financial services sector.

Best Egg: Best Egg is a leading financial technology company that specializes in providing personal loans to individuals. The company focuses on making the lending process straightforward and accessible, offering flexible repayment options and easy-to-use online self-service tools. Best Egg has originated billions of dollars in personal loans and is known for its customer-first approach, using data to personalize financial products and provide tailored solutions for borrowers. The company aims to create a seamless and efficient experience for users, helping them manage their financial needs with ease.

Host:

Tedd Huff is the Co-Founder of Voalyre and the President & Founder of Diamond D3, a consultancy renowned for its expertise in global payments and marketing. With over two decades of experience in FinTech, Huff has played a pivotal role in shaping the industry through his contributions to various startups and established companies, focusing on growth, innovation, process improvements, and enhancing user experience in the complexity of payments.

Colton Pond: Colton Pond is a seasoned marketing executive with a strong fintech and financial services background. In his latest role, Colton is the CMO for LoanPro's API-first lending platform, aiming to meet the increasing market demands. His track record includes a significant tenure at Truv, where he led the marketing team to achieve a 300% growth in year-over-year revenue. Colton has also held key marketing and sales positions at MX, Lucid, and HealthEquity, demonstrating his ability to drive success and innovation within the fintech sector.

Diamond D3, Media: A media creation, management, and production company delivering engaging content globally

Timestamps:

00:00 Introduction

02:57 Welcome Alex Rhodes

03:24 Alex Rhodes' Impressive Background

04:32 Transformation Journey

05:00 Success Strategies

09:30 Key Learnings

11:22 Differentiators in Personal Lending

13:21 The Secret Sauce

14:58 Self-Service Customer Engagement

16:41 Real-Life Customer Experience

18:08 Culture of Innovation

22:39 Operational Efficiency & Customer Experience

26:11 Response to COVID-19

32:50 Future of Personal Lending 

Welcome to FinTech Confidential, bringing you the

2

people, tech, and companies that

change how you pay and get paid.

3

Today, we are extremely fortunate

to have Alex Rhodes, the Chief

4

Operating Officer at Best Egg.

5

The business begins to evolve,

you really start to understand.

6

The product that you are offering,

who you are serving and, uh,

7

the difference that you can make

in the lives of your customers.

8

And so, um, what I would say is throughout

the course of the last 10 years, we are

9

still, you know, very business minded,

but we understand our customer, we listen

10

to our customers and we pay attention.

11

I think price is important to

customers to an extent, but service,

12

ease and flexibility are things

that customers highly value.

13

We are the most flexible by way of

payment arrangements in the FinTech space.

14

Whether it's selecting a personalized

payment schedule at the time a

15

customer gets a loan with us or

when life happens to customers.

16

They, they happen upon a

financial hardship and so talk

17

about ruthless prioritization.

18

We prioritized and focused.

19

on getting these customers the support

and flexibility that they needed to

20

get back to to paying on their loans.

21

Um, and so in record time,

it was a matter of weeks.

22

We were able to, uh, from, from

concepts through to implementation

23

and in production build,

uh, two repayment programs.

24

Uh, and you know, if I were to fast

forward six to eight months after

25

That, that period, it was, it was just

a little blip in the, in the radar.

26

Personalization is going

to separate companies.

27

Customer loyalty is going

to separate companies.

28

So being able to attract consumers

into your ecosystem is, is step one.

29

Maintaining that.

30

That relationship going forward, serving

that customer's needs over a longer

31

period of time is going to be critical.

32

As default rates continue to rise

and margins compressed at lending,

33

financial organizations are searching

for solutions to combine that

34

operational efficiency with innovation.

35

Look no further as LoanPro allows lenders

to enhance their origination, servicing,

36

collections, and payments using the

foundation of a modern lending core.

37

Check out LoanPro.

38

io to learn more.

39

Welcome to Accrued, the fintech

confidential series presented by LoanPro.

40

In this series, we're deconstructing the

complexities of lending and exploring

41

compliance, optimization, modernization,

and personalization through insightful

42

conversations with the industry's best.

43

I'm Ted Huff with my co host

Colton Pond, guiding you through

44

the intricate lending world.

45

Whether you're deep into lend

tech or just intrigued by how the

46

technology is reshaping lending,

you're in the right place.

47

Now let's dive into another episode.

48

Of accrued Colton, welcome, Backman.

49

I am so excited to have Alex on today.

50

Colton Pond: I'm stoked for Alex too.

51

I, I did mention this.

52

Ted, you're missing the vest.

53

I really wish that you

would wear a vest today.

54

We can do the finance vest thing, but hey,

55

Tedd Huff: I'll, I'll, I'll

accept a loan pro vest, man.

56

,

Colton Pond: I'll, I'll send you,

57

Tedd Huff: I'll accept one.

58

Colton Pond: Yeah, I'll, I'll

get it shipped to your address.

59

I got you.

60

Tedd Huff: Today we are extremely

fortunate to have Alex Rhodes, the Chief

61

operating Officer at Best Egg, and he's.

62

Bringing over 20 years of experience

in business strategy and operations

63

to the table for us to talk about.

64

And his track record is nothing

short of being impressive.

65

Before joining Best Egg, Alex honed his

expertise in various roles, In leadership

66

across the financial industry, including

positions at major financial institutions.

67

You might've heard about before

like Barclay Card Bank of America.

68

Those are very unusual companies

you may not have ever heard of, but

69

his deep knowledge of credit and

customer experience and operational

70

management has been a major cornerstone

of his success at Barclay Card.

71

Alex led the U S collections and recovery

operations where he was responsible

72

for overseeing recovery strategies for

consumer and small business lending.

73

He later moved on to bank of America

where he managed supply chain operations

74

and vendor control functions and his

ability to navigate these complex

75

operational challenges made him a

natural fit for leadership roles.

76

And it wasn't long.

77

Before he was recruited

78

Since then, he's been at the forefront

of Best Egg's transformation from

79

a fledgling fintech startup to a

major, major player in the industry.

80

And as the COO, he has overseen the

company's operational growth, leading

81

to the management of over 23, 000.

82

billion dollars in personal loans.

83

His strategic vision has been a key

to scaling best eggs operations,

84

which is now servicing over 1.

85

6 million accounts.

86

In today's conversation, we'll

dive into how Alex's extensive

87

background and operational expertise

have shaped best egg success.

88

We'll explore the strategies he's employed

to ensure Best Egg remains nimble,

89

customer focused and ahead of the curve in

this rapidly evolving financial landscape.

90

So let's dive into the insights

and decisions that have

91

positioned Alex and Best Egg as

leaders in the fintech industry.

92

Welcome Alex.

93

Hopefully that was good

enough for you my friend.

94

Ted,

95

Alex Rhodes: that was awesome,

fantastic, big round of applause

96

for you just for the intro.

97

Uh, Couldn't be happier to be here with

you, Ted, uh, and my good friend, Colton.

98

So, uh, looking forward

to the conversation.

99

Tedd Huff: Colton, you, you had

talked about, and you and I have

100

been talking about this a lot, but

there's a lot of really cool stuff

101

that Alex and the team over at best

egg are doing, what was it that.

102

That you saw that they're doing that

made you go, I've got to get them on

103

the podcast and share what's going on.

104

Colton Pond: There's several aspects.

105

So I'm a little biased.

106

They say, don't have a favorite customer.

107

Best eggs, a customer of ours.

108

How about a favorite Alex, Alex is one of

109

Alex Rhodes: my favorite

110

Colton Pond: people to work with.

111

I remember when I joined.

112

Uh, LonePro, I worked in Best Egg

at a prior organization too, or with

113

Best Egg at a prior organization.

114

But Rhett, he was like, you gotta

meet Best Egg, you gotta meet Alex.

115

I remember one time we went

there, we played 2 on 2 basketball

116

all night, and Alex is like a

professional basketball player.

117

So, if anyone ever wants to like, see

Alex at a conference and challenge him

118

to a basketball game, Alex Johnson.

119

He plays a good amount of basketball.

120

I think a one on one, uh, Alex Rhodes

and Alex Johnson would be entertaining,

121

but Alex is great to have you, man.

122

Alex Rhodes: Anytime.

123

Thank you, Colton.

124

Tedd Huff: So you're, you're talking

about an A to A basketball tournament.

125

That's what I'm hearing.

126

Colton Pond: I'm challenged.

127

We're to send this Alex Johnson

and tell him that Alex Rhodes

128

wants to play him in basketball.

129

Let's do it.

130

Tedd Huff: Well, we're not here to talk

about basketball, but we are here to

131

talk about Alex and what's going on over

at best egg Alex, for those who are not

132

familiar with best egg, can you give us.

133

A brief synopsis over you joining

the organization and what the

134

overall journey for the past

10 years has been for best day.

135

Alex Rhodes: So for myself, uh,

I, I joined best egg, uh, very

136

close to launch about 10 years

ago, a little over 10 years ago.

137

Um, I had cut my teeth in the industry

in, uh, in major financial institutions.

138

Like you said, you know, the bank of

America is the barkers of the world.

139

Um, And had phenomenal experiences

there, uh, finished grad school,

140

um, and was kind of at a bit of a

crossroads for myself and my own career.

141

And, uh, this opportunity

presented itself.

142

Um, and so I went from a

beautiful office building, uh,

143

on the Wilmington waterfront.

144

To a not so beautiful, uh, office building

up on Concord Pike here in Delaware.

145

And, uh, uh, joined a, a small group

of people with a vision and a dream for

146

the future of, um, personal lending.

147

Uh, so super exciting time.

148

We, we launched the business in, uh,

149

with our flagship product today,

which is our personal loan business.

150

Uh, we went from.

151

No loans, uh, obviously at, at, at

launch to, uh, today, uh, originating

152

over 30 billion in loans and

serving over 2 million customers.

153

Um, uh, along with that, my numbers were

154

Tedd Huff: a little low, too low.

155

Yeah, I know.

156

Alex Rhodes: I like numbers

that impress you, Ted.

157

I wanted to impress you with some numbers.

158

I know 30 billion doesn't sound like a

lot, but here in little old Delaware,

159

uh, it is, uh, it's quite the feat.

160

And so, um, over, over the course

of the last 10 years, we've had

161

ups and downs in the business.

162

The, the, uh, economy and our customer

base have had ups and downs, but.

163

We have persevered and, uh, today, uh,

again, have this, this, uh, this flagship

164

personal loan business that is serving

lots of needs for our target customer,

165

which is a limited savings customer.

166

Um, and, uh, we have recently introduced,

uh, several new products to help

167

serve even a broader set of customers.

168

So.

169

We have a, a auto lending product.

170

We have a rent product that works

a bit like buy now pay later

171

for, uh, our customers rent.

172

Um, and we also have a home

secured product, so lots of good

173

things happening at best egg.

174

Colton Pond: Love that.

175

So Alex, one of my favorite things

of, uh, FinTech folks that are early

176

on in the company is to extract and

understand key learnings and takeaways

177

because when you're there in that, uh,

not so nice building with a handful

178

of people with a vision, right?

179

Through that journey now, now on a

tremendous growth trajectory, you

180

learn a lot, help us understand

the key takeaways, the learnings,

181

the insights that you have there.

182

Alex Rhodes: You are fighting for survival

very early on in any business's life.

183

Um, and so it is, uh, it's about, uh,

building a foundation for a strong

184

business, um, ensuring that you're

getting to profitability within, you

185

know, a, uh, an acceptable period of time.

186

Once you get through that, um, that

period, it is, at least from my

187

perspective, it's about customer focus.

188

And so the business begins to evolve.

189

You really start to understand the

product that you are offering, who you are

190

serving and, uh, the difference that you

can make in the lives of your customers.

191

And so, um, what I would say is.

192

Throughout the course of the last

10 years, we, we have evolved as a

193

business, uh, to be, um, we are still,

you know, very business minded, but we

194

understand our customer, we listen to our

customers and we build for our customers.

195

And so I think those are

some of the key learnings.

196

Um, That that have kind of

marked a key transition point

197

in our business over time.

198

Tedd Huff: Now let's quickly

shine a spotlight on a game

199

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200

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201

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202

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203

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204

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205

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206

Colton Pond: I love the

focus on the customer.

207

So that's one like key magic point, right?

208

But one of my favorite things about

best egg is you'll play your flagship

209

product, personal lending, highly

competitive, uh, space right now.

210

Right.

211

So what's the differentiators?

212

Like what really.

213

Impacts because certain folks try and

differentiate based on rate and my view

214

is that's a losing game You got to find

other key differentiators why people

215

come back to best state consistent

216

Alex Rhodes: This is not in my mind a

a commoditized business to your point.

217

This isn't just a widget

business pushing business.

218

Um, we have a deep focus on customers.

219

We focus on what we know matters

most to our customer base.

220

And so ease and flexibility are two of

the main things that I would highlight.

221

Um, it is very easy to

obtain a loan with us.

222

You know, we have a high digital

engagement level with our customers.

223

We provide a set of capabilities and

channels for them to Not only originate

224

their loans, but to service their loans.

225

Once they become a customer from an

ease standpoint, I can't underscore

226

enough how important it is to

listen to customers, build a simple

227

and easily understood process.

228

Colton Pond: You talk about

focusing on the customer.

229

And for my interactions with Best Egg,

it comes out in all of your team members.

230

All your team members do that.

231

And I know that's a clear differentiator.

232

One of my favorite aspects about Best Egg

is you're in a highly competitive market.

233

But you, you can't just

differentiate based on price.

234

Like people try to, best state

does a really good job at key.

235

Other differentiators help us understand

the magic and, and how and why

236

customers continue to come back to best

237

Alex Rhodes: state.

238

I think price is important to customers

to an extent service ease and flexibility

239

are things that customers highly value.

240

And so we've invested, um, a lot over

the years in enhancing our tech stack.

241

Ensuring that we are providing simple

and slick, uh, tech infrastructure and,

242

and capabilities for our customers to

not only obtain loans, but then to also

243

service their loans on the backend.

244

Um, from a flexibility standpoint, I think

this is really some of our secret sauce.

245

I would venture to say that we

are the most flexible by way

246

of payment arrangements, um,

in, in, in the FinTech space.

247

Whether it's selecting a personalized

payment schedule at the time a customer

248

gets a loan with us, or when life

happens to customers, they, they happen

249

upon a financial hardship or they,

um, they otherwise need some, some

250

assistance with their monthly payments.

251

We have a broad suite of flexible

repayment options that we're able to

252

offer customers to help them stay afloat.

253

Tedd Huff: So Alex, as you talk about the

technology, the flexibility, the service,

254

all these different pieces independently,

they don't really do a whole lot.

255

It's when you bring them all together

that you really get that force multiplier.

256

Can you share with us an

example of how and when.

257

You bring all of those pieces together,

258

Alex Rhodes: Ted.

259

I couldn't agree more that

cohesion of these different

260

capabilities matters a lot.

261

Uh, I'll talk about payment programs.

262

As an example, we, uh, have had

payment programs since very early in

263

our history, but had not developed

a full suite of options to really.

264

Meet different customers needs.

265

Um, over the course of time, we have

developed these capabilities where,

266

uh, we are able to meet a customer

where they are, help them over, uh,

267

a financial hardship, regardless

of how long that hardship last.

268

It can be, you know, as little as a month

to as long as full term of the loan.

269

We were able to craft a repayment

program for that customer,

270

uh, to keep them on track.

271

So self service is really important to us,

uh, specifically from a payment program

272

standpoint, because customers don't always

want to talk to someone over the phone

273

within the comfort of their own home

and the channel of their choice, they're

274

able to understand the options that are

available to them and enroll in a payment

275

program that best fits their needs.

276

So, for example, a customer has an

unexpected expense that comes up.

277

They can log into our

customer servicing website.

278

Understand the different flavors of

flexible options available to them.

279

Enroll, modify their payment due

date and their payment amount.

280

Um, and seamlessly go back to paying in

full once that payment program expires.

281

And so, uh, we found that that

providing customers with that

282

level of choice and channel

flexibility makes all the difference.

283

Tedd Huff: So when you, when you talk

about giving them the ability to meet

284

them where they're at and the channel

that they like to use, what have

285

you done that helps them understand?

286

But that's even available.

287

Alex Rhodes: We are, um, big on

constant customer engagement.

288

And so we don't wait until

we see that a customer's

289

experiencing financial difficulty.

290

We, we routinely out pulse information

to our customers, whether it's through

291

our monthly newsletter or even more

targeted approaches to reach customers

292

that we think may be falling upon a

financial hardship to let them know

293

that there are options available.

294

Here are the multitude of channels where

you can consume information and gain

295

knowledge about what we have to offer.

296

And again, we've seen lots of success

with customers going and self solving.

297

Look at the end of the day, some

customers do want to reach out to us

298

directly and we'll, uh, happily have

voice, uh, conversations with folks.

299

But, um, we have found that,

that customers gravitate towards

300

these, uh, digital solutions.

301

It's

302

Colton Pond: actually directly

an experience directly

303

relative related to best day.

304

I would say, I don't think I've

ever shared this with you, but,

305

uh, Uh, but about six months

ago, we were trying to recruit a

306

sales member to come on our team.

307

And, uh, I remember we told him,

yeah, he's like, who do you work with?

308

We're like, we work with Best Egg and

Intuit and Chime and folks like that.

309

And he's like, Best Egg?

310

Interesting.

311

I had a really cool experience

with Best Egg two years ago when

312

I was in a really hard time.

313

Got a personal loan.

314

I lost my job and I called in.

315

I said, Hey, I lost my job.

316

I don't know if I can make my next

payment and like, Oh, no worry.

317

We can enroll you in this hardship program

on this way in this payment program.

318

It's like, Oh, yeah, that'd be great.

319

And then there was kind

of like an awkward pause.

320

And she's like, can I help

you with anything else?

321

He's like, Oh yeah, could you do that?

322

I'll wait on hold.

323

And she was like, Oh, it's done.

324

And he was so blown away.

325

And when we told him, yeah, best,

they use loan pros platform.

326

He was so blown away the best day.

327

He was like, you know what?

328

I need to work with this company.

329

So the work that you all are doing, the

impact that you're having with people

330

when they have a hard time, it's all

about like how to drive, you talk about

331

flexibility, how to drive flexibility

and meet the borrower and customer.

332

Where they're actually at.

333

Uh, when you tug on that string a little

bit more, you mentioned at the beginning,

334

best egg has done a really good job

from my perspective, launching new

335

products and new personalized products

and expanding and say, Hey, our flagship

336

product, and what are the other products

that look at, how do you stay nimble?

337

How do you launch new products?

338

What's the secret and what

are y'all doing well there?

339

Alex Rhodes: I would say that

we have a culture of innovation.

340

We have a culture of customer insights,

understanding customer needs and

341

then building for those customers.

342

And so from a nimble standpoint, our

operating model is highly nimble.

343

I can speak for operations itself.

344

We have the ability based on how

we are structured to flex up and

345

flex down by way of FTE needs.

346

Tedd Huff: What if you could

build fast but not break privacy?

347

What if you could ensure data

privacy, governance, and compliance

348

with just a few API calls?

349

What if you could worry less about

PCI requirements while actually

350

improving privacy and security?

351

How much more time would your

team have to truly innovate?

352

How much faster could you

build and ship new features?

353

How much more powerful could your app be?

354

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privacy vault delivered as an API.

355

Skyflow's radically simple design

lets you collect, secure, and

356

tokenize personal information.

357

Information like card

data and payment details.

358

And with built-in features like

encrypted data analysis and sharing

359

anonymization and advanced governance,

your days of choosing between data

360

security and data usability are over.

361

Whether you're just concerned with

PCI compliance or need to go further

362

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beyond, sky Flow has you covered.

363

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not break privacy with Sky Flow?

364

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secure.com today to learn how I

365

Alex Rhodes: say.

366

Platform standpoint, you have to

have a tech stack that enables you to

367

build new products that enables you

to provide personalized functionality

368

that enables you to put powerful

information in the hands of your

369

frontline colleagues, uh, that that

allows them to better service customers.

370

And so, um, You know, it's, it's, uh,

no surprise that we have the loan pro

371

platform that has been a differentiator

for us and being able to launch new

372

products and service those products in a

way that allows us to impart the customer

373

experience that, that we know today.

374

Tedd Huff: A lot of these things

that you're talking about are like.

375

If you look at the traditional lending

space, this is extremely innovative.

376

It's not something that everybody

is doing, you know, as you're

377

launching these products.

378

I mean, you listed off, I think

three or four, maybe five earlier.

379

I was trying to keep track, but

you were listing them off so fast.

380

You know, how, how do you ensure that

the organization stays agile enough to

381

be responsive to the customers as you

continue to grow into these new markets?

382

Alex Rhodes: Two things I would,

I would reference here, Ted.

383

One is we, we spend.

384

I won't say a lot of time, but we are

very focused on organizational alignment

385

and ensuring that our, our people

know where we are going in the future.

386

Um, we do that by, by, by setting, you

know, short and medium term goals and,

387

uh, the, the, uh, expectations or the

results that nest under those goals.

388

And so everyone understands

where we are going.

389

I think that's critical in, uh, in, in,

in, in being a nimble company, we are

390

highly focused, uh, on, on prioritization.

391

So we call it ruthless prioritization.

392

There is no lack of good

ideas in this business.

393

Um, and it's difficult to say no

to good ideas from time to time.

394

But we stay nimble because we stay

hyper focused on what we know is

395

going to deliver the most value and

what's most important to do today.

396

And so I think, you know, by aligning an

organization around common goals, common

397

outcomes and Uh, ruthlessly prioritizing

on what's most important today.

398

We were able to move this ship a lot

faster than, you know, other businesses.

399

Colton Pond: Alex,

there's two aspects there.

400

And what I love about that is even

as you've grown tremendously from an

401

FTE perspective, from a loan volume

perspective, you've still maintained

402

limbo and while launching new products,

which is a pretty cool feat in and of

403

itself, but there's two aspects here.

404

And a lot of companies think that

they compete against each other.

405

But you and your operations role

have found a way to like, both of

406

them go together and it's how do you

focus on the customer and provide a

407

best in class customer experience?

408

But how do you also drive

operational efficiency?

409

And sometimes companies will focus on

operational efficiency and it hurts

410

the customer or focus on the customer

and hurts operational efficiency.

411

Um, how are y'all measuring

operational efficiency?

412

What that looks like?

413

And then, uh, what are some

examples of some things you've done?

414

That have helped drive increased

operational efficiency in the business.

415

Alex Rhodes: So we measure operational

efficiency in a variety of different ways.

416

Um, you know, from a business standpoint.

417

We focus on our cost to serve our cost to

originate from a customer standpoint, we

418

look at the level of effort that customers

have to expend to get a job done, right?

419

So are we removing

friction out of processes?

420

Are we able to streamline servicing and

make it easy and simple for customers?

421

And so that's that's what we focus on.

422

I've never thought that.

423

You know, customer experience and

operational efficiency are at odds.

424

And I, I think I understand why you

can say that or why some may say that.

425

But for me, they work so closely together.

426

Um, if you do what is good for your

customer, which is generally going

427

to make things fast, simple, easy.

428

Easily understood you were going

to drive operational efficiency.

429

If you can increase self service

rates, um, provide a channel preference

430

like we talked about earlier.

431

Those are things that are going

to give you operating leverage.

432

So you don't have to have

voice conversations with the

433

whole of your customer base.

434

It's going to give you

leverage as you grow, right?

435

Um, and so our, our servicing

website is scalable.

436

Our other servicing channels are also

scalable, and that's, that's what's been

437

important for us to be able to yeah.

438

Become more and more efficient over

time while providing very rich, uh,

439

deeper experience for customers.

440

Tedd Huff: You know, my, my career has

mostly been product and operations.

441

So I'm hearing you go through

and talk about all of this.

442

And it just reminds me

of the number one thing.

443

Anytime that I took over a product

or a group, I would always, first

444

thing I'd always do is I'd go

straight to the support team.

445

Or to the support queue or to the

support emails and look at what people

446

were asking for, for me to get an

understanding of, of what wasn't working.

447

I would love for you to share some

specific examples of how you've

448

driven your operational efficiency

while enhancing the borrower

449

experience without sacrificing.

450

Any of the benefits you provide.

451

Alex Rhodes: Yeah.

452

So Ted, you mentioned, uh, you know, going

to the source as a bedrock to get ideas.

453

Could not agree more.

454

If you want lots and lots of great

ideas on how you can improve in

455

operations, just get to a side by

side with any of our agents, right?

456

They will tell you what is wrong with,

you know, whether it's a telephony

457

system, they will tell you where you

can make enhancements for customers

458

and what customers are saying.

459

I don't think.

460

Customer experience suffers when

you drive operational efficiency.

461

In fact, I think it's enhanced as

we drive operational efficiency.

462

Um, examples of things that we have done

attempting to drive parody in servicing

463

channels across each of our channels.

464

And so what you can do from a voice

perspective, you can do on the servicing

465

website, what you can, uh, uh, Do in chat.

466

You can do via SMS.

467

And so, um, driving parody

and servicing channels has has

468

been a game changer for us.

469

Um, it's listening to customers.

470

It's making data led decisions, right?

471

So if you have 10, 000 customers

dropping out of the IVR for this call

472

type, How can you get ahead of that?

473

How can you be proactive as opposed to

just reactive and answering their calls?

474

Um, and so I think listening to

customers being data led and, uh, again,

475

enhancing self service capabilities

has made the difference for us.

476

Colton Pond: I want to jump

into one other specific aspect.

477

And because I've spoken with the Vestig

team at length, I know that this is a.

478

Big aspect of how you've really wowed

your customers and showed up for your

479

customers in meaningful way of we've

chatted at length about how your

480

customers were your first priority when

the COVID pandemic hit and what you

481

did for your customers and what that

meant and the impact that that had.

482

I would love if you would give us a

recap of how Best Egg really showed

483

their true colors during that time.

484

We're able to really.

485

Focus on the customer

and what they needed.

486

Alex Rhodes: I'll talk about that

first, you know, six to eight months.

487

Um, Was one of the defining periods

I think for our business, uh for me

488

personally and professionally One

of one of the proudest periods of

489

time that i've had in my career.

490

Um, We were able to flip a 100

percent in house call center to

491

working from home inside of two weeks.

492

Our technology teams were, um,

we were able to be there for

493

our customers in a way that I'd

never experienced prior to that.

494

And so just for a little bit of

context, we generally speaking have

495

somewhere around four to 5 percent of

our portfolio on a payment program or

496

a loan extension at any given time.

497

As we entered, I think it was the

March or April period, uh, during

498

COVID in 2020, that spiked about 15%.

499

So 15 percent of our portfolio, we're now,

uh, not paying, you know, they weren't

500

going past two, but they were not paying.

501

And we quickly had to come up with

a way to transition customers from

502

not making payments back into making.

503

Full, uh, contractual payments,

not an easy thing to do.

504

It was, it was a scary time for

customers and as a business, it

505

was a very uncertain time for us.

506

Uh, and so talk about

ruthless prioritization.

507

We prioritized and focused on getting

these customers the support and

508

flexibility that they needed to get

back to, to paying on their loans.

509

Um, and so in record time,

it was a matter of weeks.

510

We were able to, uh, from, from.

511

Concepts through to, uh,

implementation and in production

512

build, uh, to repayment programs.

513

And, you know, if I were to fast forward

Six to eight months after that, that

514

period, it was, it was just a little

blip in the, in the radar, right?

515

Customers use those, those extensions.

516

They, they, they got on these

flexible repayment programs that we

517

were able to build in record time.

518

And they went back to paying, uh,

as agreed in, in, in record time.

519

And so it was very affirming to me

how customer centric this business is.

520

When we were able to, you know, first of

all, gain the buy in and then get the tech

521

resource and then, uh, focus and execute

on getting those, those programs in

522

place, it was, uh, it was an amazing time.

523

Tedd Huff: Hey, Ted Huff here.

524

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your application and underwriting process?

525

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526

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527

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528

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529

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530

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531

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532

It's really that simple to be able

to accomplish something like that.

533

It definitely makes me

not surprised at all.

534

That best egg achieved a top 10 spot in J.

535

D.

536

Power's ranking for personal lenders.

537

Not just once, but over the past

two years, what contributed most

538

to that success and how you're

going to carry that forward?

539

In the changing environment that is

relatively uncertain at this time.

540

Alex Rhodes: I can only tell you.

541

So there's some secret sauce behind

these, these, these rankings.

542

I am really proud of, uh, of, of

that accomplishment and being able

543

to, to be named alongside, you know,

some of the, the biggest financial

544

institutions that have been in

business for hundreds of years.

545

In some cases, um, we, we heard

from customers through that,

546

that, uh, JD power, uh, survey

that they appreciate us for.

547

The ease of doing business with

us and for the, the, the value add

548

that our customer servicing agents

provide when they service loans.

549

And so that's something that again, you

know, pulls at my heartstrings a bit.

550

I firmly believe that, that, that people

make the dream work and we are a, a

551

customer centric business, but we are

also a people centric business internally

552

and, um, you know, getting that feedback

is, uh, Again, it's heartwarming to me.

553

How we carry that going forward into the

future is we continue to invest in people.

554

We continue to invest in technology

and again, empowering our frontline

555

colleagues, putting, uh, relevant

real time information, uh, at their

556

fingertips to be able to best serve

customers, um, and continue our, uh,

557

high focus on, uh, simplicity, Ease and

flexibility in all things servicing.

558

Colton Pond: I will second that

and I love that you brought up your

559

frontline staff and your people.

560

One, talking about how your team,

who is building in loan pro and

561

the origination system and other

systems you have, shadow them.

562

But two, how they are just as

important as your customers because

563

they are the face of your company.

564

Um, I don't, I won't share the number

cause I don't know if I can share the

565

number, but of all the customers we have.

566

Best egg that I've chatted with.

567

And I typically ask this question,

best egg has one of the lowest employee

568

turnover rates from your frontline staff.

569

And like that makes a huge impact.

570

And that's an area that transparently

a lot of people don't focus on.

571

They're like customer, customer, customer

focus on the people that interact with

572

the customer to make sure they can

deliver in a consistent, meaningful way.

573

Tedd Huff: Yeah.

574

How are frontline colleagues?

575

Secret sauce item there, Colton.

576

Colton Pond: I didn't

share how they did it.

577

They're doing cool stuff.

578

Alex Rhodes: Our frontline

colleagues are the best.

579

Um, I won't share the attrition

rate, but I will tell you if you're

580

familiar with, uh, call center

attrition rates, we are probably one

581

sixth of the average call center.

582

So, yeah.

583

Incredible.

584

So I'm

585

Tedd Huff: going to ask you,

Alex, to reach under the desk,

586

out of the closet, whatever it is.

587

And heck, even if you want to,

we'll hop in the DeLorean and head

588

into the future about five years.

589

I want you to go there.

590

I want you to look at what's going

on, come back and share with us.

591

What you see happening in

lending and specifically personal

592

lending in the next five years.

593

Alex Rhodes: So Ted, I thought this

question might come up and I consulted

594

my crystal ball, uh, and it was just

a cloud, a bunch of fog in there.

595

Um, but, uh, What did you set on fire?

596

But I will tell you, I, I

know that customers will have.

597

More optionality than

they have today, right?

598

They will have options.

599

If you think about the options that

the customers have today, it is a

600

simple click of a, of a, of a couple

of buttons on their computer and they

601

can understand they get, you know,

dozens and dozens of loan offers.

602

And so I think, uh, options and choice.

603

Will will will be plentiful.

604

Personalization is going

to separate companies.

605

I think, uh, customer loyalty

is going to separate companies.

606

So being able to attract consumers into

your ecosystem, um, is is step one.

607

Maintaining that that relationship

going forward, serving that

608

customer's needs over a longer period

of time is going to be critical.

609

Um, data is going to be important.

610

Use of data is going to be important.

611

You know, the amount of data, uh,

specifically from an alternative data

612

standpoint is just growing exponentially.

613

And so, um, that is, is, is, is critical.

614

Uh, is going to influence

the future of lending.

615

Um, I think from an operational

standpoint, uh, customers already

616

expect to be able to, again, serve

in their, um, through the channels

617

that they prefer when they prefer.

618

Um, I think hopefully best day can,

can, uh, change the industry a bit

619

from a flexibility standpoint so that

customers aren't surprised when they have

620

flexibility within financial services, but

also But that it becomes more of the norm

621

and, uh, and, and, and customers are shown

that their business is valued because

622

businesses are willing to be flexible

and again, meet them where they are

623

Colton Pond: as more optionality

comes, the personalization

624

becomes really important.

625

I want to hit you with two rapid fire

questions because we didn't touch on it

626

and we touched on every single episode

and like we need to AI overrated here.

627

He goes, goes a I Alex

overrated or underrated.

628

Alex Rhodes: Uh, too new to rate.

629

So I'll go outside the box.

630

Yeah,

631

Tedd Huff: I like that.

632

But critical.

633

Alex Rhodes: I will tell

you, I think it's critical.

634

There are many applications that that

are discussed in industry forums around,

635

uh, customer facing applications.

636

And I think all of that is very important.

637

I can tell you what I am probably

most excited about are the agent

638

facing, um, use cases for AI.

639

How do we make it.

640

Things more efficient.

641

How do we allow our employees to focus

on the things that are more important?

642

Um, and how do we, how do we enhance

the agent experience with the same level

643

of tenacity and focus that we, that

we go after customer experience with?

644

Colton Pond: We've learned about the

incredible success of best day without

645

sharing all the secrets, so don't.

646

You don't need to share the secrets, but

help us understand what's next for best

647

day lending, verticals technology, like

the direction that best egg is headed.

648

Alex Rhodes: We were a monoline business,

a personal loan business for a number

649

of years, you know, eight years of

our history within the last two years,

650

we've launched several new products.

651

And so I don't think the near term

or midterm future, uh, Lots of new

652

product implementations, but I think

it looks like making enhancements on

653

the flagship product because although

we've come a long way and we have

654

a very good value proposition for

customers, we can always get better.

655

And so we were focused there, um, and

we were also focusing on scaling these

656

new businesses, nothing, uh, nothing to

write home about by way of, you know, New

657

and interesting, um, products out there.

658

But, uh, but scaling the

businesses that we've launched

659

recently is really important.

660

Tedd Huff: So we, we, we're talking

about all these different personalized

661

loan products and making these changes

and all these different things.

662

And, you know, in past episodes with,

with other folks that, that are in the

663

lending space, we've talked about the

potential role that blockchain and smart

664

contracts can play in these spaces.

665

I would love to get.

666

Your perspective on that technology

and playing a part in what

667

you guys do over at best eggs

668

Alex Rhodes: Admittedly, I I am not the

the expert on blockchain technology.

669

Uh, what I can tell you is that um

I, from an unsecured personal loan

670

standpoint, you know, it's, it's unclear

to me how that technology plays a

671

big role when you get to the secured

side and you start dealing with UCC

672

filings for our home secured product.

673

Um, if you've ever worked in the

auto lending industry, then, uh, you

674

know, more power to you, it is one

of the most archaic, uh, processes

675

that, that one can imagine, I

would love to see a blockchain for.

676

I would love to see a blockchain

for mortgages or deeds.

677

And so, um, you know.

678

My hope is that that technology is

advanced in the future because I can

679

tell you, it is a friction full process

to originate, you know, secured loans

680

where you have to go through governmental

agencies today to, uh, perfect liens.

681

Tedd Huff: So as you're talking about

all these great new technologies and all

682

these different pieces about making sure

that you can leverage like the blockchain

683

and smart contracts to really tighten

up some of the things that are a little

684

loose, How do you see the regulatory

environment supporting things going

685

forward in the personal lending space?

686

Alex Rhodes: Yeah, I think, I think the

regulatory environment in my experience,

687

uh, has been one of really good intent,

uh, highly interested in supports, uh,

688

new technologies that, uh, You can clearly

articulate how it supports customers

689

and how it is good for customers.

690

And so the specifics of how the

regulatory environment will change,

691

I'm uncertain of, but I do know

that good intended technologies that

692

are responsibly deployed, generally

garner favor from regulators.

693

Tedd Huff: That's something that I noticed

through our conversation today, that

694

everything is based on a purpose, on data.

695

And on an expected outcome.

696

And that is something that I look forward

to seeing more in FinTech in general.

697

Uh, I think we're, we're

headed towards that a lot.

698

So I really appreciate you

sharing all of that with us today.

699

Absolutely.

700

Happy to.

701

Colton Pond: Yeah.

702

And Alex, the, the keynote for me is

there's a lot of ways to differentiate.

703

Right.

704

And there's a lot of things and

it's not one, uh, one of my, uh,

705

the old co founder of MX that CTO

is one of my really good friends.

706

He said.

707

There's no silver bullet,

just a truckload of lead ones.

708

And it's the same, like

there's not one differentiator.

709

There's a bunch of ways, but

we're really highlighted is.

710

Y'all's focus on the agent experience.

711

Y'all's focus on the customer

experience post origination.

712

The pre origination side is important

to be able to get them in the door.

713

But one thing Best Egg is best

in class of, what does that

714

experience look like after?

715

So after I pay off my personal loan,

I come back and I come back to Best

716

Egg next time I need something.

717

And, um, how to change lending.

718

Rhett and I talk about this often.

719

How to change lending from a

transaction to a relationship and

720

y'all have been best in class there.

721

So thank you for joining us today.

722

Alex, it was an absolute pleasure.

723

Alex Rhodes: True pleasure.

724

My end, Ted Colton.

725

Thank you both.

726

Great to see you both.

727

Tedd Huff: Well, folks, that does

it for another episode of accrued.

728

If you've made it this far, go ahead.

729

Like the episode, share the

episode, leave us a comment.

730

We love him having the feedbacks

we talked about earlier today.

731

And as always.

732

As we wrap up today's episode,

I've got one last thing for you.

733

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Lily: This has been a production of

DD3 Media with all rights reserved.

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This is provided for

informational purposes only.

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It is not offered or intended to

be used as legal, tax, investment,

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financial or other advice.

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We strive to provide accurate

and up to date information but

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will not be responsible for any

missing facts or inaccuracies.

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You comply and understand that

you should use any of this

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information at your own risk.

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Cryptocurrencies are highly volatile

financial assets, so research and

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make your own financial decisions.