Earlier this month, a study conducted by management consultancy agency Bain & Company* revealed a shocking trend in the banking industry –banks are bleeding customers, and they probably don’t even realize it.
What’s worse –this could easily true about the mortgage industry.
This study revealed the increasing importance of a digital experience and its influence on customer loyalty. Echoing the Ellie Mae study we published last week, this Bain & Company study showed banks that offer a seamless digital banking experience are “poaching” customers from banks who are lagging in Fintech.
Even well-established consumer-bank relationships are no match for the lure of digital convenience, and the study showed that 29% of those surveyed trusted a tech company over their primary bank!
Stopping the Outflow of Customers By Increasing The Digital Flow
The key is to offer alternatives for communication and service needs. Consumers don’t want to be forced to make a call or visit a branch. Instead, they want the option of live assistance in addition to a seamless digital experience.
The study was quick to explain that plugging the bleeding vein may take more than adding a single digital product. Just like in the mortgage industry, consumers expect an entire ecosystem –one that takes them from exploring mortgage options to final funding.
Looking toward the future, digital experiences are even more important to Generation Z. This group was especially open to creating new relationships with banks that had a robust and seamless digital banking option.
The Takeaway for Brokers and LO’s —
The importance of a digital journey for client acquisition cannot be ignored –and it’s just as true in banking as it is in the mortgage industry. Curious as to what a seamless, digital mortgage experience looks like? Sign up for a free trial with our stackable and customizable digital mortgage platform.