Currently, mortgaging companies focus on providing higher rates than the competition leading to a no-win situation for all parties. According to several surveys, they should instead focus on customer experience.
Reduce Competition For Best Rates
All mortgaging companies can offer a narrow range of mortgage rates between 5.5% to 7.5% in 2023, according to predictions. Since customers seek the best rates and companies can barely offer significantly different rates from the competition, they should focus on other things. Customers also want better advice and better assistance through the process of lending. These should become the new focus for competition.
Getting Involved Before The Transaction Phase
If a mortgage company gets involved in the lending process when the customer is already prepared to buy a house, then they are a simple service provider. But if they get the customer as they begin to think about buying a house, they can provide a very useful value added service. At this phase, the customer needs a guide and advocate, and it is easier to take up the role of a trusted advisor.
Role of Trusted Advisors
According to surveys, it is important to meet a representative in person. But most customers are very comfortable being able to speak to a live person or simply use self-service during the lending process. The customer specifically seeks a few things in particular from trusted advisors. These include:
- Advice on their financial situation.
- Explanation of the application process.
- Complete answers to all their application-related questions.
- Fulfilling expected requirements.
- Explanation of the process of closing.
- Getting servicing related information.
Use Web-Based Portals And Mobile Phones
It is important to have a mobile friendly web portal or even an app for communications with mortgage customers. Currently, there is no such service in the mortgage process. As a result, the company and customers exchange a lot of spurious mails. Information in mails are not updated once they are sent. For example, information being asked for by mail may have already been submitted by a customer before the mail is opened. Since the mortgage customer constantly engages with their mobile device they can get updated information through it instantly.
Be Consistent In Communications Across Platforms
It is important that the customer receives consistent messaging across all customer communications. If the communication is digital across multiple platforms, then they should have the same information and from consistent sources. Otherwise spurious and confusing communications become common.
The article was authored by Bahaa Abdul Hussein and has been published by the editorial board of the Fintekdiary. For more information please visit www.fintekdiary.com
