ARTICLE
Are your mortgages welcoming to today's consumers?
How lenders can win in the age of customer experience
22 October 2024
The way mortgage lenders interact with their customers has dramatically changed.
Driven by convenience and choice, potential homebuyers are using websites and apps to find and secure their loans. To stay competitive, mortgage providers must deliver more personalised products and smoother digital experiences - and that means modernising their core lending platform.
For most people, a mortgage is the biggest financial commitment they’ll ever make. The process of purchasing a home often fills them with excitement. However, too much friction in the lender’s mortgage process can cause unnecessary stress and anxiety.
As more borrowers use digital tools to research and secure their mortgages, they expect fast, efficient and seamless experiences. Delays, over-complexity, or lack of relevant products can cause them to reconsider their options. That’s why modernising mortgage infrastructure and processes is crucial for any lender looking to stay competitive.
Modernisation must start and end with the customer
Over the past decade, many mortgage providers have embarked on core modernisation journeys to reduce manual processes, handle increased regulation and to improve their operational performance. These efforts are often driven by a focus on efficiency and cost-control – but to truly succeed, modernisation must keep the customer at its heart.
Building a great experience is especially vital in hyper-competitive mortgage markets like the United Kingdom, Ireland, Australia and New Zealand. Although home ownership is a key aspect of national identity and an aspiration for most individuals in these countries, there are continuous challenges related to:
- Housing affordability, lack of supply and excessive demand.
- Fluctuating interest rates which require variable rate mortgages that can keep up with these changes or else fixed-rate options to help customers stabilise their budgets.
- Increased legislation and regulatory oversight which is putting even more pressure on lenders to ensure responsible practices and consumer protection.
While the industry pivots from product-centric strategies to a more customer-centric approach, traditional banks and non-bank lenders now face constant pressure to innovate.
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