Technology can help mortgage lenders retain customers with clear and easy processes, increasing engagement and reducing friction.
The UK property market has made headlines throughout 2021. The general trend is that house prices are up, demand outstrips supply, and people are leaving cities to pitch metaphorical tents elsewhere. The mortgage landscape is changing too. While many struggle with the ups and downs of bricks and mortar, bright minds in software development are conjuring magic with zeroes and ones. For instance, cast your mind back just a few years and you may never have imagined completing a mortgage application on your phone.
Of course, we can do plenty more with our pocket computers than even Steve Jobs may have foreseen. We can book train tickets and use QR codes to get through the turnstiles, watch a film while travelling, read thousands of books, check bank balances, and arrange shopping slots. What can’t we do? Mortgage applications are the tip of the iceberg!
And if there’s anything that needs “disrupting” these days, it’s laborious form-filling nightmare scenarios like applying for a mortgage, or knowing what to do when your current mortgage offer matures. And if you thought having a step already on the property ladder absolved you of having to complete forms ever again, think again. It’s another round of misery ridden with complexity and unknowns for customers and providers.
When a mortgage offer comes to an ends, there should be a frictionless way to switch products and retain the customer. The process should be simple, easy to use and available 24/7, and fit for consumers who demand digital services that match living in the 21st century. And let’s have it fast, if you don’t mind. Does such mortgage technology exist?
Challenges for mortgage lenders overcome with technology
People are riding a fintech wave at the moment. We’ve got platforms for banking, motor finance software, consumer lending solutions, and more. Financial services are available at our fingertips. As mortgage
s offers come to an end, the process of knowing what to do next if you’re a consumer is now easier than ever. And mortgage lenders are benefiting from advances in technology too.
By making switching products easier using digital technology, you create an opportunity to build engagement, offer better mortgage incentives, and keep a customer for longer. Mortgage lenders that offer simple application processes, account overviews, and cutting-edge customer journeys will counter the sector’s biggest challenges. Let’s look at two of those challenges:
Product switching isn’t always easy. It’s not, which is why making it easy for customers to switch products and stick with you is crucial. It’s only achievable if the process is clear and the customer has all the information they need. When the offers are visible and enticing, and the process of switching is easy, your customers are more likely to stick around.
Customer expectations. They’re higher and more demanding than ever. This is because customers are generally more tech-savvy. To retain customers and increase engagement, as well as deliver functionality fast enough, customer experience has to match demand. The provider has to know as much as the consumer technology.
The advent of transparent mortgage agreements has buoyed a new breed of mortgage company that specialise in personalisation. But the future of the industry doesn’t necessarily belong to fintech startups. By empathising with how the consumer sees the lending process, mortgage lenders – traditional or new – can use technology to make everything clear and understandable. When lender and customer are in tune, people are more likely to switch product than switch provider.