The Necessity of Customer Service in The Lending Industry

 

With DeFi being the cutting-edge new field in the financial world, many are flocking over to it under the belief that it is superior to traditional financial tools. And while DeFi does have its advantages, there is one major disadvantage that is often overlooked by newcomers.

 

DeFi Projects have Extremely Limited Customer Service

 

Practically every DeFi project has either limited customer service, or no customer service whatsoever. This is not an oversight, it is something that simply comes with the territory. It is not possible for there to be genuine, helpful, human customer service with a DeFi project or platform because all significant activity happens via automation. Smart contracts are handling practically everything, and there are no human operators who are able to step in and intervene, should somebody need their help. In fact, for that to happen would be to defeat the purpose of decentralized finance as a whole.

 

With this in mind, DeFi is a double-edged sword; on one half it allows for people to have financial autonomy, on the other hand it locks anybody else out from helping with technical issues or difficulties. For some this is a huge problem, as people always make mistakes, and issues always occur on just about any platform. However, on CeFi platforms, people can step in and help, whereas on DeFi, you are left to your own devices, hoping that the problem solves itself.

 

Customer Service and Lending

 

Customer service is arguably one of the most important features of any financial tool. When people are dealing with their own money, tensions are often high as money is such an omnipresent and necessary aspect of living. And with loans, tensions are even higher as many choose to lend large quantities, and are in need of borrowing urgently as the vast majority of financial deadlines are time-sensitive.

 

In situations like this, customer service is deeply important. CeFi crypto lending platforms are centralized, meaning that there are human employees managing the platform at every step of the way. This is extremely important as it allows for robust and in-depth customer service, meaning that somebody can speak to you if any issues occur. This significant feature is something that DeFi is wholly missing. If a DeFi lending platform does have a customer service option, it is deeply limited, with it being unable to help you in any meaningful way, or tell you anything you don’t already know.

 

Arguably, this is not a problem with DeFi, but rather a feature of it. Nonetheless, when it comes to handling large sums of money, and providing loans in a timely manner, the lack of customer service can leave many feeling lost, confused, and frustrated. Loans are often more urgent than other financial tools because they are so frequently used in time-sensitive situations, and when that happens it means a lot to be able to speak to somebody who can explain what is happening and offer all necessary assistance. With this in mind, CeFI lenders are better suited for most individuals.