Why customers control your digital lending transformation – and what you can do about it

Consumers are in control of the lending process. They may not know how much control they have, but lenders do. That’s my biggest takeaway from this year’s MBA Annual 19.

Consumer control boils down to access and speed. For example, where can a consumer apply for a mortgage loan and how quickly – and painlessly – will that loan close?

Most potential buyers, 61 percent, according to the second annual Ellie Mae Borrower Insights Survey, want to apply for a mortgage online completely. More than 70 percent of Millennials do for all or some of their application. With slightly fewer Gen Xers (55 percent) and Boomers (43 percent) doing the same.

More than that, borrowers want the process to move smoothly and quickly, even if they know it might not. The amount of paperwork required to apply for a mortgage puts off many consumers, especially in the last decade or so, when the housing crisis changed the rules regarding what lenders require to close a loan.

That documentation – W2s, tax returns, paycheck stubs and more – can become enough of a frustration that some consumers will back out of the process altogether. Add to that lost or missing documents, extending the approval and closing timeline, and potential borrowers might abandon the process for a more agile company.

Keeping track of the process

Innovation and digital transformation are changing all that. Lenders who optimize or replace legacy systems and work toward developing a robust platform ecosystem can offer borrowers the customer experience they hope for.

More than that, the right loan document tracking solution can accelerate the loan lifecycle and give you a complete view of the application process. The right solution tracks loan data, documents and exceptions for multiple borrowers and multiple loans by gathering and sorting all loan collateral, correspondence and borrower information.

It then reports on any captured data element, including collateral type, entity name, expirations, exceptions, document types, items updated throughout the loan process, collateral on closed loans, pipeline visibility and correspondence.

The right process also helps ensure compliance throughout the loan’s lifecycle, identifying expiring documents and informing loan officers of what new documentation needs collecting, initiating retention following payoff. You avoid fines and penalties – keeping your organization’s reputation intact.

Don’t ignore customer experience

Experts believe customer experience will be the driving factor differentiating lenders from their competitors. Maybe more than price point and product offerings – and as soon as right now. So providing the best customer experience possible should be the goal of every digital lender.

To do so means building a relationship with the borrower, understanding how and why they want to do business and having the flexibility and adaptability to make that happen. The right digital transformation plan can help make that a reality.

Bryan Boynar

Bryan Boynar

Bryan Boynar is Hyland's global solution marketing manager for the financial services industry.

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