Digital mortgage 2.0 – A paradigm shift in customer experience

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Deliver the digital experience.

Mortgage lending customers expect their lending institution to deliver a digital experience in the mortgage application process.

PwC recently conducted an exclusive consumer study and analysis of 1,620 recent and prospective borrowers nationwide to understand what they expect in their home lending experience for purchase, refinance, and home equity transactions.

We ran a statistical analysis to determine whether offering six different digital tools was correlated with increased customer satisfaction, and found that all six had a statistically significant relationship. Simply put, lenders who offer high quality digital tools have higher customer satisfaction.

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Key opportunities for lenders

  • Let consumers choose their own adventure: There is a wide variance in how, when, and why consumers want to engage with their lender.
  • Offer your consumers more value: Borrowers are open to engaging with lenders earlier in the process and using additional services as long as they see the value.
  • Link your digital investments to specific objectives: The factors that improve satisfaction are different than the factors that decrease fallout. To achieve your desired results, you need to understand the drivers of specific behavior.
  • Recognize the continued power of people: Loan officers and real estate agents both have major a major influence on satisfaction and lender choice. Digital tools should enable them, not replace them.

Trends that will dramatically reshape the tools which mortgage lenders offer

  1. Increased automation, reducing manual data entry through auto-population
  2. Voice interfaces, led by the rise of smart speakers and virtual assistants
  3. Hyper-personalized advice and pricing, driven by artificial intelligence and machine learning
  4. A more engaging customer experience, driven by design thinking and gamification
  5. Increasing choice for consumers, and ability to control how they interact with tools (e.g., guided or self-service)
  6. Proactive advice and recommendations – before borrowers even realize they need help

Key takeaways and lender impact

At the end of the day, borrowers view home-buying as a single transaction and expects all of the stakeholders to work together seamlessly and effectively. Lenders who effectively serve as the central point to orchestrate the overall transaction can position themselves as trusted advisers and improve the overall customer experience.

The question is no longer “Whether” customers want digital tools. It’s now a question of “When,” “Why,” and “How”.

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Contact us

Roberto Hernandez

Principal, Consumer Finance Group, PwC US

Peter Pollini

Banking and Capital Markets Leader, PwC US

Jacquelyn Studdert

Manager, Consumer Finance Group, PwC US

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