Digital Consumer Loan Origination: Are You Missing Out?

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The number of consumers embracing all-digital experiences has skyrocketed to a point where it feels like every day is Cyber Monday. What’s more, research** supports that this new digital-first consumer mindset will only intensify in years to come.

And if you skimmed those opening statements, you probably missed its most critical point: there’s a marked shift in consumer online behavior, and understanding this change is everything to your mortgage business in 2021 and beyond.

For many, it seems too daunting to get their loan origination up to digital consumer speed. Especially after seeing many lenders struggle to meet expectations even after adding technology to their loan process.

What, then, is different about the digital consumer? What precisely are their needs and expectations in digital lending?

And what actionable steps can you take to deliver on those expectations and win over the digital-first borrower?

Simply put, what you need is an immediate and future-proof approach that hooks your borrower, drowns out the competition with an exceptional experience, and personalizes engagement at every touchpoint of origination.

Does your current digital experience meet new consumer demands? Read below and put your current digital loan origination to the test.

“Luxuries” are Now Necessities

Of the many lessons that the pandemic taught business, having the ability to capitalize on digital efficiency and doing it at scale was probably the most defining one. One notable example was that of online grocery shopping. While online grocery shopping and delivery were available and used by many, it was still considered a “convenience” and marketed as such.

The pandemic quickly altered this consumer mindset. Today, if any grocer hopes to stay in business today and in the foreseeable future, it must have an online shopping cart with fast pick-up/home delivery.

The same rings true for loan originators. While online loan intake was available, many (consumers included) viewed it as a perk.

That is no longer true.

The all-digital consumer expects their broker or lender to provide an immersive mortgage experience online, just the same as walking into a branch. Those lenders that don’t are sure to lose.

Omnichannel Personalization

Omnichannel personalization means that your borrower feels the same level of attention from you no matter the channel. From your mortgage website, mobile app, and mortgage POS, to your social media, instant messaging, email responses, and voice calls, every loan origination touchpoint must be personalized with the borrower’s needs at the core.

In this new reality, understand that borrowers are buying into experiences, not just the loan product.

Along that same line, as the LO, your goal is to keep the borrower within your mortgage brand ecosystem, with each touchpoint working to create more engagement and nurture the lead to closing.

While the concept of an omnichannel experience isn’t necessarily new, the scope within the mortgage process has expanded immensely. Failing to deliver in this area doesn’t just put you behind your competitors; it puts you behind the digital-first consumer expectations.

Out With Customer Service, In With Borrower Concierge

Gone are the days where the consumer had the patience to leave a message and wait for a callback. Or to be placed on hold for minutes at a time.

Remember that not too long ago, phone automation was revolutionizing customer service. Today, even calling your bank to check your current balance seems archaic and time-consuming.

Today’s all-digital borrower demands a concierge approach to customer service and loan origination. This is done through self-service and the ability to connect with your business instantly.

When it comes to borrowers connecting instantly, you can achieve this through instant messaging on your mortgage website, in-mortgage app messaging, video conferencing, and even social media messaging. Think “push-button” connectivity.

Self-service comes into play with digital mortgage features like milestone trackers, on-demand pre-approval letters, and mobile-accessible borrower portals. Essentially, borrowers want to be able to take action or see their loan status whenever, wherever.

The Empowered Borrower – Consumer Education

All-digital consumers are spending less time doing traditional methods of “shopping around.” For example, they’re spending less time test-driving cars and more time looking at consumer review videos; less time visiting the local home entertainment retailer and more time researching the product, the brand, and reputation.

Lenders and originators can leverage this drive for knowledge by providing borrower education through digital resources, such as articles, infographics, videos, podcasts, ebooks, and even interactive tools like mortgage calculators.

The logical result is an increase in mortgage leads, particularly those that are highly motivated.

Put your borrower at the center with the most flexible, scalable digital mortgage platform.

The pandemic pushed the mortgage industry into all-digital workspaces. Some lenders were better prepared than others to weather the change and meet the new digital-first consumer’s demands.

If you’re struggling, there is still time to get it right, and LenderHomePage is here to help. We have what you need to upgrade your loan origination into a digital strategy and build a foundation for a more profitable and enduring business structure.

Learn how our new Loanzify Mortgage POS platform and Loanzify Mobile App meet the digital borrower’s expectations and the loan originator’s workflow needs. Contact us today for more for a live demo.

**https://www.grandviewresearch.com/industry-analysis/digital-transformation-market