Online all the way
The majority of consumers now prefer to apply for loans online, especially young borrowers. While some segments still prefer human interactions for certain parts of the process, a viable digital process is now mandatory for lenders wishing to compete across all consumer segments.
Keep things quick and simple
Other than economic factors or having an existing relationship, borrowers believe the most important factor in choosing a lender is the speed of the process. More sophisticated features such as automated status updates and financial literacy tools are popular but ranked lower in importance.
Reaching younger borrowers
In addition to a stronger preference for a digital application process, younger borrowers are less satisfied with their current application experience than other consumer segments surveyed.
For each asset class, having an existing relationship with a lender was seen as a key referral source for the loan in at least one-in-five cases. While traditional marketing and referral sources remain important, the cheapest way to generate new business may be to target the customers lenders already have.