Most borrowers prefer hybrid user experience, not just tech: survey

As financial technology becomes increasingly paramount for more mortgage providers, the vast majority of consumers want communication methods that involve speaking or meeting with loan officers.

ICE Mortgage Technology’s Borrower and Lender Insights Survey showed three-quarters of loan officers reached out to their clients once a week after they filed applications. A 72% share of lenders said they felt that amount of contact led to satisfied customers and 77% of borrowers agreed.

Borrowers largely preferred a hybrid approach to communication, blending digital and traditional methods such as in-person interactions and phone calls. Among the 2,000 borrowers and renters who participated in the survey, about three-quarters preferred some kind of combination, with a 26% share of that group wanting an even split between the two types of contact, while 25% placed an emphasis on traditional methods and 14% preferred a digital emphasis. About 24% of survey respondents said they’d prefer purely traditional methods and 11% wanted a purely digital experience.

While mortgage technology took a huge step forward as pandemic conditions necessitated a digital means of conducting business, a tailored, human touch is still needed for an ideal user experience.

“Many lenders looked at solutions like a point-of-sale or eClose as marketing tools, more than a means for improving the borrower experience,” Joe Tyrrell, president of ICE Mortgage Technology, told NMN. “Speed of response and the ability to automatically keep consumers informed of the progress of their loan has really become capabilities that are in high demand.”

COVID-19 permanently shifted how lenders conducted business and 2020’s record loan volume highlighted the need to get away from manual processes in order to scale accordingly. A nearly unanimous 99% share of lenders said tech will streamline the mortgage process and lower costs going forward.

While adopting the latest technologies can certainly help, they also need to be compatible with each other and legacy systems.

“We’ve heard lenders talk about the difficulty of creating a cohesive consumer experience when they are leveraging multiple providers for an eClose experience,” Tyrrell said. “Without a single-provider solution covering all aspects of the borrower engagement, this important process will remain fragmented as disparate technologies create different user experiences.”

A 58% share of consumers said the choice of an online application portal would positively impact their lender choice, while 63% believe online options are easier than an in-person process. More than half of the online applicants said the simplified process and reduced closing times were beneficial. Among the 91% of lenders who offered online options, 60% of them reported that they received over half of their applications online, while 38% received more than 80% online.