Insights Report · Article Library

Technology, Revenue and Borrower Perception

By Mike Seminari February 2020

Share this...
Share on Facebook
Facebook
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin

Lenders are spending more than ever before on tech as a percentage of loan costs, yet according to STRATMOR data, most lenders are not exactly satisfied with the technology choices they’ve made. And to make matters worse, most lenders have no idea how their customers feel about their technology choices.

How important is the borrower’s perception when it comes to implementing new technology?

According to STRATMOR’s 2019 Technology Insight® Study, lenders’ number one expectation when they invest in new technology is that it will improve customer satisfaction. So why is it that once the technology is implemented, most lenders fail to measure whether that happened?

Perhaps the answer is that they’re not focusing far enough down the road. If you’ve ever implemented a new technology at your company, you know that success is critically dependent on adoption by your employees. It is essential that your internal staff uses the new tools, but  fostering internal adoption should not become and end unto itself, such that you lose sight of the broader goal of improving the customer experience.

A rocky borrower experience with new technology can immediately affect revenues in terms of a loss of referrals and poormouthing of the company to prospective customers. Ultimately, the voice of the customer will tell you whether your investment of time and money in new technology was worth it. If your shiny new tools are not perceived by customers as simple, intuitive and helpful, then you’ll need to right the ship quickly before you sink in a sea of negative sentiment.

Arguably, providing the best possible borrower experience should be at the top of each lender’s priority list and all other systems and spending should support that goal. According to data from MortgageSAT, which measured the loan experience for more than 133,000 borrowers in 2019, interaction with online tools can very much make or break the chance of repeat or referral business.

Consider what happens to Net Promoter Score (NPS), which measures likelihood to recommend to friends and family, when borrowers have a less than stellar experience with a lender’s online tools:

Chart 1


Source: MortgageSAT Borrower Satisfaction Program annual data, 2019. © STRATMOR Group, 2019.

Chart 2


Source: MortgageSAT Borrower Satisfaction Program annual data, 2019. © STRATMOR Group, 2019.

Chart 3


Source: MortgageSAT Borrower Satisfaction Program annual data, 2019. © STRATMOR Group, 2019.

In conclusion, while internal adoption is extremely important to the successful rollout of a new technology, it’s only the first stop along the route to success. Lenders need to remember why they purchased the new technology in the first place and keep their eyes focused on consumer adoption — and the ultimate prize, consumer delight.

What’s a Lender to Do?

Here are three ways you can begin to tap the voice of the customer for feedback on your consumer-facing technology:

  1. Establish a Baseline. Before choosing and implementing new technology, establish a baseline of customer satisfaction and perception of tech tools. Without a baseline, it will be impossible to measure the impact, both good and bad, of the new technology on the customer experience. A tool like MortgageSAT will ask the right questions and provide a solid baseline.
  2. Anticipate Possible Pain Points. Technology is a mixed bag. At the same time your team is eagerly anticipating the time and cost savings, you also need to plan for possible pain points that the new technology could cause your customers. Will customers be confused about how to contact you as you migrate to more digital communications? Will they be nervous about their data security? Will they be reluctant to have another password to remember? Create clear communication mechanisms to preempt these concerns.
  3. Tell a Success Story. Use before-and-after customer satisfaction metrics to underline the new technology’s positive impact on customer experience. Employ marketing efforts (internal and external) to amplify customer testimonial statements that highlight a positive experience with your online tools.

Find out more about STRATMOR’s MortgageSAT Borrower Satisfaction solution and how transparency into the loan process can help your company. Contact MortgageSAT Director Mike Seminari at mike.seminari@stratmorgroup.com or schedule a demo today on the MortgageSAT webpage.

How Can We Help?

STRATMOR works with bank, independent and credit union lenders on strategies to solve complex challenges, streamline operations, improve profitability and accelerate growth. To discuss your mortgage business needs, please Contact Us.

The most successful lenders live by their numbers; they embrace change and create a culture of accountability and transparency.


Related Articles

E-Closings and the Borrower Experience

Share this...FacebookTwitterLinkedinTime has taken on a whole new meaning in 2020. While we wade through the likes of a pandemic not seen in 100 years, and experience interest rates lower ...
Full Article

Why Invest in Referral Partner Relationships?

Share this...FacebookTwitterLinkedinThe wild ride of 2020 continues to bring us new and unexpected turns. Most recently, mortgage rates hit a new all-time low at 3.07 percent, which is allowing lenders ...
Full Article

An Originator’s Guide to COVID-19 Communications

Share this...FacebookTwitterLinkedinRegardless of where you stand on the current debate about when we should reopen the economy, one thing is clear – there is a great deal of confusion around ...
Full Article

E-Closings and the Borrower Experience

Share this...FacebookTwitterLinkedinTime has taken on a whole new meaning in 2020. While we wade through the likes of a pandemic not seen in 100 years, and experience interest rates lower ...
Full Article

Why Invest in Referral Partner Relationships?

Share this...FacebookTwitterLinkedinThe wild ride of 2020 continues to bring us new and unexpected turns. Most recently, mortgage rates hit a new all-time low at 3.07 percent, which is allowing lenders ...
Full Article

E-Closings and the Borrower Experience

Share this...FacebookTwitterLinkedinTime has taken on a whole new meaning in 2020. While we wade through the likes of ...
Full Article

Why Invest in Referral Partner Relationships?

Share this...FacebookTwitterLinkedinThe wild ride of 2020 continues to bring us new and unexpected turns. Most recently, mortgage rates ...
Full Article

SIGN UP NOW to start receiving the monthly STRATMOR Insights email report.

  • This field is for validation purposes and should be left unchanged.