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

‘Like Visa for B2B’: Fundbox raises $176 million and hits $1.5 billion in SMB originations

  • Fundbox hits a major lending milestone to SMBs.
  • The company feels it has a big runway for growth.
Zoe Murphy | September 24, 2019
Online Lenders, Podcasts

LendingPoint’s Tom Burnside: ‘There’s room to grow — we’re early in our journey’

  • LendingPoint has grown its consumer lending business over 9200 percent in three years.
  • CEO Tom Burnside joins us to talk about growth and products.
Michael Deleon | September 23, 2019
Online Lenders

Al Goldstein on Avant’s move into powering digital lending for banks with Amount

  • Avant started six and a half years ago in consumer lending and has transacted over 1 million times.
  • The company is spinning off Amount, its B2B digital lending platform.
Zack Miller | September 13, 2019
Online Lenders

Alternative data gets a thumbs up: Update on the CFPB’s first no-action letter

  • The CFPB published more information about the use of alt data in credit decisioning.
  • The results are positive for lender Upstart and for the industry in general.
Michael Deleon | September 06, 2019
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
More Articles