Online Lenders

‘Don’t forget the personal touch’, finds PwC home lending study

  • According to a new survey, consumers are open to digital lenders.
  • But importantly, they want personal service to go along with the technology.
‘Don’t forget the personal touch’, finds PwC home lending study

Mortgage lenders better not forget about personal service in the digital age. According to a recent study on home lending by PwC, borrowers are excited about the prospect of home lending options from tech firms, but don’t want to sacrifice personal service as a result.

Something simple, like a phone call after closing, can make a huge deal to a recent borrower. “Our survey found a direct correlation between a check-in call upon closing and a buyer’s likelihood to reuse and recommend a lender,” PwC concluded. As a result, 52 percent of borrowers who received a check-in call after closing said they would be very likely to reuse that same lender, compared to only 23 percent of borrowers who did not receive a check-in call post-closing.

Digital lenders are more likely to communicate in more impersonal ways, such as email instead of phone calls. While this makes it easy and fast for anyone to apply for and obtain a mortgage, it takes away the personal experience borrowers demand.

Consumers want to borrow from tech firms

Consumers need a personal touch from their lenders, yet still are interested in borrowing from technology companies. 42 percent of recent and prospective homebuyers would support a technology company as their mortgage provider, according to the study.

More than half of respondents aged 18-34 are open to using voice assistants, like Google Home and Amazon Alexa, during the mortgage process. Quicken Loans customers can already make a mortgage payment using Amazon Alexa, so it isn’t too far fetched to think the mortgage application process will migrate to these devices in the near future.

The best of both worlds

As consumers shift to digital mortgage lending options, it doesn’t eliminate the need for lenders to provide a personal service. This could open the door for local lenders who take the leap into digital as the perfect compromise. Big core providers like Fiserv are starting to help brick-and-mortar lenders, like credit unions, move to the cloud. This brings local lenders, which have a superior track record of customer service, closer to their tech counterparts in the digital services they provide.

Online Lenders

A deeper look into the payroll advance industry

  • Along with 10 other states, New York is looking into the payroll advance industry.
  • Branded as a kinder, gentler version of payday lending, it's possible that the industry's tipping model is more than it seems.
Paige Stern | August 13, 2019
Online Lenders

‘We call it Dream Fuel’: Behind the growth of PayPal’s SMB lending business

  • PayPal is scaling its SMB lending business and its program recently surpassed $10 billion.
  • svp of credit Darrell Esch joins the podcast to talk about where the business is headed.
Zack Miller | August 07, 2019
Online Lenders

Affirm’s Max Levchin: ‘Walmart doesn’t get enough credit for its customer focus’

  • Walmart has recently rolled out Affirm's POS financing broadly in its stores.
  • CEO and founder Max Levchin sat with Tearsheet to talk about the state of the business.
Zack Miller | June 21, 2019
Online Lenders, Podcasts

Mirador’s Trevor Dryer: ‘The world doesn’t need another high price lender’

  • Banks and credit unions are able to compete digitally with non-bank lenders.
  • Mirador helps them compete on speed and customer experience.
Michael Deleon | June 17, 2019
Online Lenders, Podcasts

MSTS’ Brandon Spear on credit as as service: ‘Find a way to solve payments painpoints and you’ll create a real advocate inside a business’

  • MSTS was started by a Fortune 100 to help with fuel payments.
  • Now, the company wants to help large B2B companies solve complex payment issues.
Zack Miller | June 10, 2019
More Articles