Customer experience
2x
Increase in retention rate after providing auto debit payments
2x
Faster reconciliation time
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PT Asuransi Jiwa IFG (IFG Life) is a subsidiary of Indonesia Financial Group (IFG)–a state-owned strategic holding company for insurance and underwriting companies. IFG Life provides health and life insurance products to thousands of policyholders in Indonesia, acquired through digital channels (through the IFG Life app), as well as non-digital channels (through agents).
To maximize sales and capture a higher market share, IFG is dedicated to continually improve customer experience, particularly in terms of making payments convenient for customers through digital payment methods.
Challenges
Low user retention rate due to poor payment experience
Life insurance requires periodic payments of premiums. However, making these payments can be challenging for customers:
- Cumbersome application process for non-digital transactions
For convenience, many customers would like to automate their premium payments via auto debit. However, to do that, they have to manually submit forms and documents to their banks so that their premium payments can be deducted periodically from their bank accounts–a bothersome process that takes too much time and energy. - Manual one-time payments for each transaction on mobile applications
Without automation, customers have to make one-time payments manually for each payment period (e.g. every month or every year). Customers are busy, so they may sometimes forget to make payment on time. This results in late payments, lapsed policies, and ultimately a low retention rate.
Time-consuming manual reconciliation process
IFG Life’s team needs to reconcile thousands of transactions on a daily basis. To ensure the integrity of the data and minimize any potential human error, the team has to check each transaction 2-3 times against various other sources. This process is exhausting and time-consuming, taking up to one working day to complete just one report.
Solution
Creating a seamless payment experience by enabling subscription via auto debit feature
Working with Xendit, IFG Life has now activated the auto debit feature for online payments made through credit cards and debit cards.
Xendit’s auto debit feature, which allows customers to skip authentication (no OTP required), pairs with IFG Life’s scheduler and enables funds for premium payments to be automatically deducted from customers’ accounts each payment period.
Customers only need to do a one-time account-linking process, which is fuss-free–it only takes a few seconds, and customers can perform it fully online before the first transaction.
Centralized reconciliation through Xendit Dashboard
All payment activities, including money-in and money-out transactions, as well as other related information, are centralized and can be accessed on one single dashboard. This makes reconciliation a breeze–IFG Life’s team can simply download the data they need from the dashboard, and they can proceed to perform the analyses as needed.
Results
Improved customer experience
The auto debit feature, as well as the seamless account-linking process to enable it, helps IFG Life offer a better payment experience to its customers. Now, premium payments are easy and painless–customers no longer have to go through tedious manual processes to make payment on time.
2x user retention rates after implementing auto debit
With the auto debit feature, customers’ human errors and lack of time no longer cause delays in premium payments. This resulted in a drastic increase in retention rates.
Less time needed to reconcile transaction data
With centralized data, the team no longer had to cross-check various data sources. This significantly increased their efficiency and shortened the time needed, from a full day of work to just a few hours.
Before Xendit | After Xendit | |
Monthly premium payment experience |
| Using Xendit Auto Debit feature:
|
Reconciliation | Spending an entire day on tedious, manual processes involving cross-checking with 2-3 data sources | Centralized data on Xendit dashboard eliminates manual checking, boosting efficiency such that reconciliation takes just a few hours |
