Beyond the loan: Lessons from PwC’s 2019 Home Lending Experience Radar
Home lending: another industry in transition?
Ride-hailing services. Social media and binge watching. Over the past two decades, US consumers have come to expect a new kind of speed and personalization for much of what they buy. But getting a mortgage is still remarkably similar to the process in the year 2000.
This gap in customer experience keeps getting bigger. But there are opportunities to close it, and some lenders are rethinking how they can provide services to add more value to their customers.
In our Home Lending Experience Radar report, we look at attitudes and forces shaping how US homebuyers act today. They suggest that industry players will face some big choices to stay competitive.
What home lending consumers want now
Recent and prospective homebuyers told us a lot about what they want now
- Lenders have an invaluable opportunity to build rapport with homebuyers early if they can educate their customers about all that lies ahead.
- Technology companies may be seen as potential competitors, but traditional lenders still have some built-in advantages, if they use them.
- A simple check-in call after closing is surprisingly powerful in shaping a buyer’s likelihood to reuse and recommend a lender.
- Buyers would like a more integrated experience, and lenders that offer guidance throughout the process may differentiate themselves.
- Digital tools can be helpful, if they’re used at the right time and with the right customers.
Why this matters
- To succeed, you’ll likely need to know much more about your customers. While many lenders aren’t taking advantage of all the data they have, leaders use sophisticated analytical approaches to stop customer churn and identify new revenue streams.
- Many lenders still dedicate too many resources to low priority areas. Successful firms reinforce capabilities that make them the best at what they do and step away from functions that won’t make them unique.
- In an increasingly commoditized business, some of the most appealing opportunities lie outside the mortgage box. You may benefit from thinking more holistically about how you can add value across a homeowner’s end-to-end experience.
How PwC can help
Our teams in asset and wealth management, banking and capital markets and insurance are helping our clients tackle the biggest issues facing the financial services industry. With professionals across tax, assurance and advisory practices, we can help you find ways to thrive even in a period of uncertainty. We cover the full spectrum of consumer lending asset classes, including mortgage, auto finance, student lending, credit card, unsecured consumer and small business lending. We have specialists in each stage of the end-to-end loan lifecycle across asset classes, including originations, servicing, collections and capital markets. And whether you're preparing for regulatory changes, putting FinTech/InsurTech to work or rethinking your human capital strategy, we work together with you to deliver value to your business.
For more information on how PwC can help, reach out to one of our leaders below.
