Sales growth was the top reason lenders gave for investing in new technology, according to a new study from sales automation software firm Velocify.
In what might be a bit of surprise, compliance came in fourth, with 47% of respondents selecting it as a factor. Technology was cited by many in the industry as the way
The third-most-cited driver was customer retention, mentioned by 56% of respondents. Velocify surveyed more than 500 mortgage professionals for the study, in collaboration with mortgage marketing automation provider Velma and mobile mortgage technology company Mortgage Coach.
The study also found that the channels a company lends in will have an influence on their choice to invest in technology — and their growth, as a result.
Velocify reported that lenders that rely more on consumer-direct channels invested more in marketing and sales technology and more frequently experienced high growth, as compared with lenders that relied on retail channels. The study also found that growing lenders were more likely to spend between 10% and 20% of their revenue on marketing.
"We found the results to be a wakeup call for retail lenders," Chris Backe, Velocify's financial services director, said in a news release Wednesday. "Putting all of your eggs into the loan officer basket and referral strategy is not a sound approach without marketing support and state-of-the-art technology."
Velocify added that retail lenders have picked up on this trend: Lenders with large retail channels and high purchase volume indicated they plan to invest more in technology in the future.
As for what technologies lenders associated most with growth,
