Improve Customer Satisfaction for the Home Loan Services

Whether you realize it or not, digital transformation is inevitable in the mortgage landscape. When it comes to the home loan services, customers no longer want to be tied down to traditional methods. Instead, the need of the hour dictates a swift adoption of digitalization for private lenders. In this article will explain 5-ways to improve customer satisfaction for the home loan services.

In 2022, customers are not satisfied when a private lender uses a redundant digital system. The good news is that private lenders can seek out the help of qualified digitalization services for their mortgage loan business. Besides, amidst the COVID-19 pandemic crisis, it became clear that the mortgage industry need to digitize core functions to move forward in the right direction.

McKinsey’s insights prove that improving the overall customer journey increases revenue by 15% and customer satisfaction by up to 20%. In the tech-centric age, more and more mortgage loan services want to digitize different aspects of their business and render the best customer satisfaction. Plus, it is the best way to cut back on operational costs.

Family satisfied with home loan services

What Makes Up Digital Mortgage Process?

A digital mortgage uses modern-day technology to communicate and engage with applications about different aspects of the loan application. This cuts out the need to depend on manual processes, simplifies the entire mortgage application process, and reduces internal costs at the same time. The focus of digital mortgage lending is to pair together with a combination of tech elements with specific touchpoints. This gives borrowers a personalized experience and improves customer satisfaction.

Keeping that in mind, here are the best 5 ways to step up customer satisfaction in the mortgage loan business:

1.     Prioritize Customer Satisfaction of Borrowers at Early Stages

Lenders have to value and prioritize borrower satisfaction right from the start. And that means focusing on previous and current feedback from customers to improve customer satisfaction. In fact, this data will be more than enough to guide your customer engagement and customer journey strategy.

Also, focus on key satisfaction metrics of borrowers like NPS (Net Promoter Score). Think of it as a starting point to dig deep and understand what makes borrowers tick and what initiatives would improve their overall experience.  In terms of borrower feedback, you can focus on integrated customer text messages, email surveys, web input data, customer panels, customer events, mobile-based flash surveys, and dedicated online focus groups.

2.     Don’t Make Preconceived Assumptions about Customer Satisfaction

In order to improve borrower experience and render high customer satisfaction, the last thing mortgage loan businesses should do is make preconceived judgment calls. In the end, you have to take proactive initiatives that revolve around borrower satisfaction.

The trick is to figure out what matters the most to borrowers. The truth is that understanding customer behavior is a combination of qualitative and quantitative analysis. The better you understand customer behavior, the higher the customer satisfaction.

In fact, lenders often focus on assumed values that would drive more customer satisfaction. In a practical sense, private lenders need to be transparent and make decisions based on analytical data rather than make assumptions that would satisfy borrowers.

3.     Redesign Your Customer Journey

Once you pull off a redesigned customer journey, you will be able to redefine the entire borrower experience. Like combined end-to-end digital touchpoints, you should view redesigned customer journey through the lens of a retransformation of your mortgage loan business.

So, cut out steps that may have a negative impact on the borrower experience journey and stretch out the overall customer journey. When it comes to home loan services or mortgage loan servicing, make sure to leverage mortgage loan processing software solutions. You can also roll out identity verification and facial recognition solutions online and ensure a mobile-based self-service customer journey for customers.

You may add some specific tools to support borrowers in thei choice. It may be mortgage loan calculator, automated document generation module and e-sign. Read more about possible features to implement in Plivate lending case study.

4.     Specific Digital Touchpoints Equals Better Customer Journey

Your objective should not be to just focus on the customer journey. Instead, establish clear digital touchpoints that can render a singular customer experience. For starters, make sure customers are able to complete their entire mortgage application online in no time.

Similarly, cut down old school time limitations and give customers at least 10 days to make a decision about the mortgage application. These decisions may sound simple, but they can significantly improve the customer journey and bump up the quality of experience for borrowers.

5.     Align Operational KPIs with Customer Satisfaction Metrics

You have to make modern digital technology part of your customer satisfaction strategy. And that means your customer satisfaction metrics should tie together with operational KPIs. Similarly, opt for bundles services and create a single-stop digital model for your mortgage loan business. Heightened customer satisfaction will help you review customer profitability metrics.

This, in turn, will make it easier to focus on specific behavioral touchpoints of the borrower and create more value for your mortgage loan business. In retrospect, you have to delight your customers beyond basic measures of satisfaction and use actionable data, metrics, and benchmarks to consistently improve customer satisfaction.

Long-term Consequences of Decreased Customer Satisfaction

Failure to overlook or render jaded customer satisfaction scrambles the shared understanding of customers. This, in turn, ultimately leads to more operational costs for mortgage loan businesses. In 2022, the mortgage loan market has become more competitive and customer satisfaction warrants high priority. Fundamentally, it is crucial to understand that satisfied borrowers are the most profitable borrowers.

Final Thoughts

A satisfied borrower experience works in favor of private lenders. And satisfied customers mutate into deeper loyalty and lead to more engagement. In the digital era, there are several ways to improve customer satisfaction in the mortgage loan business. Ideally, private lenders should have a broad and direct approach to digitizing different aspects of their mortgage loan business.

Researches prove that improved customer experience helps businesses generate more revenue, cut back on operational costs, and build long-term customer loyalty. A satisfied borrower experience means more opportunities to maintain a competitive edge and stand out in the market.

Opt for an all-in-one package of digital products that provide continuous support to borrowers and brokers in mortgage loans. You can count on the experts at Nextres to help you throughout the digitalization process. We understand that the digitized lending transition is unavoidable for mortgage loan businesses. And this makes it all the more reason to embrace digital adoption before it’s too late.

You can rely on Engenious to get the best digital services. Whether it’s a digital business consulting, functionality extension, integration of advanced digital systems, or UI/UX design. Reach out to us now to learn more information.

May 30, 2022

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