Writer: Erica Sandberg
Editor: Lillian Guevara-Castro
Reviewer: Adam West
I recently had to go to my bank to discuss an unpleasant situation about one of my accounts. It was an illuminating experience.
Like most people, I conduct nearly all of my financial service management online and the rest over the phone, so entering a physical branch and waiting in line to speak with an employee felt like something out of the past.
And it was wonderful.
The manager escorted me to a nicely decorated conference room, offered coffee, and briefly chatted about the weather before diving into my situation. I left with all of my concerns addressed, the person’s business card, and a great impression.
What would it have been like had that representative not been so professional and kind? If he hadn’t shaken my hand and conveyed warmth in a stressful situation? Or if there had been no one to speak with at all? That positive feeling — as well as potential business — would have been lost.
For subprime lenders, offering this level of service — whether in person or on the phone — is even more important. After all, people with financial problems and bad credit tend to avoid interacting with their lenders even when it would behoove them. They often anticipate judgment and disrespect.
However, if these same borrowers know they’ll be treated with the finest of social graces, they may become your best customers.
Mitigating Risk With Manners
Subprime borrowers tend to have greater needs than do people with good credit, so they require extra handholding. They often have more disputes and questions about their payments, and if they can’t keep up, may need hardship plans and account modifications.
Each interaction you have with such borrowers carries outsized risk of churn, delinquency, and default. Your approach matters. Etiquette should not be reserved for big spenders and premium borrowers. It’s a risk-mitigation tool for people who are struggling.
Ensuring pleasant and respectful interactions can prevent people from avoiding contact. Unfortunately, many subprime borrowers never reach out because they don’t feel good about themselves.
For example, a 2025 Beyond Finance survey of men experiencing financial difficulties found that 19% of respondents said they feel embarrassed, 38% feel frustration, 29% feel anxiety, and 28% feel overwhelmed.
People can feel frustrated and anxious when they experience financial difficulties.
In fact, when I was a credit counselor, I remember people in financial trouble being terrified to contact their lenders because they thought they’d be yelled at.
While their fears weren’t always rooted in reality, the belief that they would be met with scorn prevented them from getting the assistance they needed.
But what if these customers knew they’d be treated with dignity when they reached out for help? That they were sure the person they spoke with would be kind and go far to find solutions? The odds of them contacting their lender before their circumstances devolve increases, thus lowering the risk of default and in some cases bankruptcy.
When subprime lenders practice fine etiquette, they can inspire borrower engagement and resolve issues.
Your Opportunity to Be Competitive With Human Service
There is nothing wrong with leaning into tech. As a subprime lender, artificial intelligence (AI) refines underwriting, and can boost your bottom line. For borrower support, AI agents can be both proactive and reactive, enabling you to accurately assess risk with alternative data and detect fraud quickly.
But for customer support and service, it may not make sense to exclusively use AI agents. By offering options for at least some operations, you can rise above the crowded field of lenders.
A 2025 ICE Mortgage Borrower Insights survey shows that 44% of borrowers like being able to switch between digital tools and working with a real person.
Infosys Consulting reports that consumers in general prefer a mix of digital and in-person services, with most borrowers wanting to submit financial documents, learn about the loan, and pre-qualify online, but prefer to speak with a representative while reviewing the final loan details.
Forty-four percent of surveyed borrowers say they like to switch between digital tools and working with a real person for customer support.
Human representatives who will answer loan and credit product questions can differentiate you from your competitors. As more companies cut costs by switching to affordable AI tools, having a real person to speak with feels elegant, special.
It may not make sense to have a brick-and-mortar location for borrowers to speak with representatives, but employees with excellent manners who can defuse emotionally charged moments can make a real difference to lenders.
As regulators, consumer advocates, and investors scrutinize how lenders treat vulnerable consumers, such special service can put you in an especially positive position.
Is There Anything Else I Can Do for You?
It’s hard to quantify just how impactful it is to treat distressed borrowers with genuine respect, but consider the alternative. When a person believes they aren’t important, they may be less apt to prioritize those payments. If they think they’ll be met with an AI bot or a rude employee, they may be less likely to reach out for help again.
When I left the bank with a cup of coffee and all of my issues cleared, the manager said, “If there’s anything else I can do for you, don’t hesitate to call me.” My perception of the financial institution elevated dramatically that day. I was confident that, should I have problems in the future, I knew just who to contact for resolution.
That’s exactly how subprime borrowers should feel. As a lender, surely this is what you want as well.
