By Jennifer Kim, Senior Recruiter, Salesforce
Most people would agree that buying a house is a huge and exciting milestone. But applying for a mortgage? Not so much. The truth is, the mortgage application process is intensely demanding and time-consuming. It requires sifting through heaps of paperwork (involving actual paper) and repeating the same process over and over again across multiple lenders.
And surprisingly, even though many lenders have adopted more digital solutions in recent years, intending to streamline the labyrinth that is the mortgage process, problems still persist. In fact, J.D. Power – an American market research company – recently reported that overall borrower satisfaction in the mortgage application process has declined. This is partially due to the fact that it took about 36 days to obtain a mortgage in 2017 – an increase of seven days from the year prior.
The takeaway? Improving the mortgage application process isn’t just about if new tools and digital channels are being used – it’s more about how technology is being used to give borrowers what they really want: an intuitive, flexible borrower experience catered to each individual.
In Salesforce’s latest e-book, The Digital-First Mortgage, they dive into the reasons why customer expectations have changed, as well as what mortgage lenders can do to make it easier for homebuyers to make what is often the largest purchase of their lives. Here is a sneak peek at a few of the key takeaways.
Why Borrowers Are Demanding More
Digital disruption has transformed customer expectations across all industries. The mortgage industry is no exception. Borrower expectations have evolved in a way that has already outgrown most processes that mortgage lenders have in place.
Today’s borrowers have become accustomed to transparent and efficient services like Amazon and Uber. They want more than just the ability to fill out a mortgage application online. Borrowers want options for how they complete each task: in other words, an entirely reinvented and wholly personalised process.
They want the ability to engage with a team of experts whenever the need arises and on the channels they prefer. Digitization isn’t necessarily about replacing people or parts of the process. A digital-first mortgage approach is about enabling lending teams to deliver a better customer experience overall.
Outsiders Are Taking Market Share
Startups and outside lenders are giving traditional lenders a run for their money (no pun intended). Financial technology companies and non-traditional lenders such as Amazon, loanDepot, and QuickenLoans have entered an already saturated market with tremendous success.
These “non-banks” are using a digital-first approach to acquire new customers, combining data and knowledge about their target customers to create unique mortgage solutions. They’ve identified the broken components of the mortgage application process, proving to the industry that it’s not a one-size-fits-all linear path. The ability of these outsiders to provide a more efficient and flexible choose-your-own-path borrower journey is a huge competitive differentiator. As a result, they’re stealing away significant market share from traditional lenders.
Using technology to reinvent the borrowers’ experience can have a positive business impact in a variety of ways: help drive recurring business, generate referral business, and expand your network of customer advocates.
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Article first appeared on the Salesforce Blog.
Lava is an authorised Salesforce Partner in Malaysia and has more than a decade of experience in cloud solutions which includes marketing automation, CRM implementation, change management, and consultation. We pride ourselves in not just being a CRM partner but in also understanding the needs of our customers and taking their business to the next level.