Loan origination systems have been transformational for banks and credit unions. They have streamlined very complex processes and combined previously siloed systems for more efficiency. And they make handling the tremendous amounts of documents required for loan approval manageable for staff. As a result, financial institutions have seen significant improvement in workflow efficiencies and lending officer productivity. Consequently, lending officers can close more loans faster – boosting revenue.
While banks and credit unions have seen considerable gains from implementing these sophisticated systems, they have not been as beneficial for the borrower. At some financial institutions, the customer journey is missing in the loan application process, leaving customers to apply for credit blindly.
Securing a Loan Can be Anxiety Provoking for Customers
Buying a home for most individuals is the biggest purchase of their life. It is also a stressful process fraught with so many unknowns and decisions. And it can be incredibly daunting in today’s highly competitive real estate market when customers need to make decisions incredibly quick as not to lose out on the desired home. Yet, even after all those anxiety-provoking situations, securing a mortgage is often the step in the process that elicits the most concern.
While hopping online to shop for a mortgage may start off feeling convenient, it can quickly turn into feelings of unease. When you think about the mortgage alternatives, it can be dizzying 20-year loans, 30-year loans, interest-only, 7-year adjustable, or prime plus one. Without an expert to explain your options, that sense of apprehension heightens as borrowers do not know what mortgage is right for them.
Additionally, online loan origination systems require customers to upload loads of financial documents, including pay stubs, W2s, bank statements, tax returns, and on and on. This online process is a huge time saver for financial institutions who need to wade through these documents. However, this process can be overwhelming for customers who are unsure if the method is secure or if they are providing the correct paperwork.
Rather than feeling like they are on a customer journey, customers feel like they are moving through a process blindly! Without engaging with bank staff, borrowers do not know what loan they are applying for or what it takes to get approved.
Dramatically Improve Your Customers’ Loan Experience
Supplementing your loan origination system with a customer engagement platform can dramatically improve your customers’ loan experience. An effective digital customer engagement system is designed to discover customer needs and guide them to appropriate loan recommendations. Using digital guided conversations, financial institutions gain a much deeper understanding of customer circumstances and needs and offer more targeted loans. For example, if a customer only plans to stay in their home for a few years, an adjustable mortgage may be their best option. With a digitally guided conversation, borrowers have the opportunity to offer critical information that is vital to a best fit loan recommendation.
Without an expert to answer questions, customers can feel lost in the process. Borrowers are often unsure of the requirements for loan approval. Using guided conversations, customers can gain insight on criteria for a mortgage and for which mortgage they have the best chance of approval. For instance, a co-signer on their loan may help secure loan approval. But without engaging with the bank’s experts, it would be impossible for the borrow to determine that.
Make Borrowers Home & Auto Credit Easier and More Informed
Purchasing homes and automobiles are complicated enough! Borrowers have questions on so many considerations that go into a loan, including credit scores, DTI ratios, and down payments. A uninformed loan process only ups borrowers’ angst about securing credit and dealing with a financial institution. It is essential in the customer journey for borrowers to know what type of loan they are applying for and what the interest rate will be so they can prepare for the financial costs of the loan.
When borrowers engage in digital guided conversations, rather than feel like they are in the dark, they receive a sense of caring and concern for their financial wellness during an exciting but stressful time in their life.
Digital Guided Conversations Deliver 40% Higher Approval Rate on Loans
Financial institutions leveraging customer engagement platforms in their loan process are getting real results. The quality of credit applications from applicants who visit a digital conversation guide is superior. For example, a Super-Regional Bank in the mid-west revealed that loan applications from applicants who visit a digital conversation guide as the first step in their online loan process on average have a 40% higher approval rate than those who have not visited a guide.
Ignite Sales is the leader in digital customer engagement, using artificial intelligence for engaging analytics to facilitate growth, deeper product penetration and increase satisfaction levels of bankers and customers.
CASE STUDIES
Digital Customer Engagement
When banks shine using customer facing digital engagement, they see tremendous growth. Discover what some of the nation’s leading banks are saying about Ignite’s engagement solutions.
