Luko automates its payments with Gocardless

How to stand out in the highly competitive HRM market? Insurtech Luko has relied on technology to stand out against heavyweights that dominate more than 90% of the market. This solution contributes to customer satisfaction and loyalty.

According to Luko, in this highly competitive market, “the primary objective of insurtech is to offer its customers all the services of an insurance company, at a lower cost, and in a completely digital way”, explains Constantin Lagneau, product manager at Luko. For the latter, “in order to acquire and retain our customers, we must constantly reinvent ourselves to offer innovative services and experiences that break with traditional insurers; thus, our customers have the possibility of taking out insurance directly on our site and receiving their certificate in less than five minutes. Then they can manage all their insurance settings and access many related services right from our app. ” He adds : “As we grew, the high cost of card payments was becoming unsustainable, particularly due to a very manual process that was prone to failure if the card expired or cardholder information changed. »

The best solution was to integrate GoCardless as an automated payment solution capable of integrating with existing insurtech. This helps reduce current costs and contain them in the future, while promoting overall operational efficiency and customer experience.

After technical onboarding in a matter of weeks, new Luko customers now pay an initial one-time payment by card before setting up a direct debit mandate via GoCardless for their subsequent recurring payments. Then, Luko’s systems take over thanks to a direct connection with the GoCardless API, which automates payment requests, updates on payment status, and the creation of new mandates.

What about this automation? “It’s quite incredible, despite over a million transactions collected each year, which is around 50% of our income, no one manages the payments at Luko. This is a role that is no longer needed within our organization, thanks to GoCardless. Our payments are completely automated, with no human intervention needed to trigger payments or allow our users to make changes. »

Who says automation also addresses the problem of the failure rate, here of payment. According to Lucko, through GoCardless, “we have found a simple and reliable payment solution that secures the revenue stream. Card payments regularly fail, making it a much less reliable method of payment. We have half the number of payment failures with GoCardless, and we’ve made a savings of more than 50% on bank rejection fees says Constantin Lagneau. He adds “GoCardless is the preferred payment method for 50% of our customers, primarily due to the ease of setting up and tracking their card payments. The best feedback we can get from our customers is no more feedback! We used to get a lot of negative feedback about payments going wrong and complicated adjustments, but we don’t have that problem anymore. »

Ultimately, “We can trust GoCardless to support and help us in our ambition to become Europe’s leading neo-insurer within a few years, thanks to their deep knowledge and experience of adapting to new countries and new customers “concludes Constantin Lagneau.

This example revives, if necessary, the problem of automation addressed here by UiPath. No doubt, in search of islands of productivity in these moments of rationalization, automating rhymes with saving. With the key to better customer satisfaction. It is not Denis SOUPAULT who would say the opposite.

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