Mortgages have traditionally been a reliable source of income for financial entities like banks. That’s why many brick-and-mortar banks have not paid much attention to improving their mortgage customers’ overall satisfaction. However, given the current economic climate, that is beginning to change. Lenders and Fintech startups are investing in automated lending procedures that make it simpler for customers to apply for and close on home mortgages, giving borrowers more alternatives than ever. While having additional mortgage servicing solutions options is generally good for borrowers, it can be bad for traditional lenders stuck in the past with their application processes. High housing prices and interest rates are putting a strain on today’s borrowers. They want for a shopping experience similar to that of Amazon. They are likelier to immediately click “close” on anything that seems antiquated.
Telephonic mortgage loan signing by a family
Documentation bottlenecks are a thing of the past. The moment has come for conventional banks and lenders to develop novel approaches to serve the needs of mortgage borrowers better. Several technology resources exist to facilitate this goal.
Maintaining Your Place in the Lending Market
The property market has changed dramatically during the past few years. The pandemic has slowed the construction of new homes because it has disturbed the supply chain. Rising borrowing rates compound a shortage of properties for sale.
Even though the property market is volatile, many individuals still need to buy homes. They may want a larger or smaller dwelling as their families grow or shrink. They could also be relocating to the area for reasons unrelated to work. Homebuyers want the mortgage process to be manageable and time-consuming, regardless of the motivation for their house hunt.
This is why people looking for a mortgage often rely on online resources. The pandemic has hastened the financial sector’s transition to digital tools. Customers have grown accustomed to the ease and speed with which they may conduct business with online merchants.
Mortgage applicants rely heavily on digital resources.
Recent research shows that half of all customers now use digital channels at least once a week to connect with their bank, up from 32% in 2018. Customers already accustomed to working with their bank for other banking needs, such as checking, savings, or investment accounts, will anticipate a similar process when applying for a mortgage.
That’s why mortgage companies need to modernize their procedures so new and existing consumers can enjoy a streamlined online mortgage lending experience.
Methods Financial Institutions Can Use Technology To Better Serve Their Clients
There’s no denying the importance of digital interactions to customer satisfaction. Here are some ways innovative mortgage companies might use technology to delight their current clientele and potential new ones.
Recreate the convenience of purchasing online.
According to a recent survey, 40% of consumers would switch banks in favor of an online shopping–style digital banking experience. This is in line with the results of a poll conducted by Salesforce, which indicated that 66% of customers want businesses to cater to their individual requirements.
Banking in the digital age is a must for customers.
Due to the pandemic, many people have turned to Amazon for their everyday and professional needs instead of going to physical stores. The online retail giant provides a highly customized service based on browsing history and purchases for each consumer.
Therefore, customers have come to anticipate a consistent experience across all mediums, not just online shops. To provide a consistent user experience, financial institutions may need to update the design of their mobile apps and websites.
Provide access to self-help resources.
Today’s tech-savvy consumers would rather research than ask for assistance. Instead, they prefer having access to the data when they need it, even if that’s not during regular banking hours.
Chatbots and other forms of automated customer care enable people to receive answers to their questions quickly without requiring the involvement of human employees. To provide a more tailored experience and respond to frequently asked queries or resolve often occurring issues like changing payment bank details or due dates, modern chatbots make use of natural language processing (NLP). A human may now devote more attention to answering complex queries and providing a “wow” customer service experience.
To speed up the funding procedure, use eClosing.
With the advent of electronic signatures, homeowners no longer need to visit mortgage lenders to sign paperwork physically. The funding process can be accelerated and closing delays reduced or eliminated using eClosing. Online signing eliminates the requirement for parties to gather physically for the signing ceremony.
Use Machine Learning and AI for forecasting.
In the past, determining whether or not a borrower was eligible for a mortgage loan involved a lot of tedious manual work on the part of loan officers. The loan approval procedure can now be sped up with the help of artificial intelligence (AI) and machine learning (ML) capabilities. Digital underwriters like Candor use customer data like creditworthiness to make lending decisions.
Tools exist to help financial institutions detect fraud, which saves both time and money.
According to research conducted by Deloitte, 70% of banking consumers rated a unified customer experience across channels as very important or important. Therefore, financial institutions must implement internal procedures to guarantee a consistent customer service experience across many channels.
Maintain cohesion between offline and online environments
It’s crucial that online and offline interactions feel like a seamless whole. For instance, a bank’s online specials should mirror those available in-branch and vice versa.
According to research conducted by Deloitte, 70% of banking consumers rated a unified customer experience across channels as very important or important. As a result, financial institutions must establish internal procedures to provide a consistent customer service experience across many channels.
To expedite the entire mortgage procedure, use mortgage automation software.
The mortgage lending process can be automated to save time for borrowers and lenders without compromising efficiency or accuracy.
Mortgage automation shortens the time it takes to apply for a loan, increases the speed with which applications are approved, and aids financial institutions in forging closer bonds with their clientele.
Automation of the mortgage loan process reduces processing time.
Microservices, which provide adaptable solutions for the ever-changing financial industry, are only one of the many tools available to aid in mortgage automation.
In conclusion, mortgage servicing solutions have various benefits, and those mentioned above are among the few. Improving customer service, however, is the biggest advantage of mortgage servicing solutions.