Implementing a digital mortgage strategy is a rewarding journey for mid-size lenders. Even without the mega-funds required for a complete and disruption-free rip-and-replace of their legacy LOS, digital adoption is an essential step that will help lenders lower costs and shorten closing cycles.
In our experience, two digital models are emerging. In the first, the lender integrates internal systems with supporting vendors as best as possible. However, their broker and back-office processes remain as-is, or might even require them to hire additional personnel. In other words, they fail to extend the digital mortgage experience to the borrower.
Successfully extending the digital experience to the borrower is where the second model succeeds. Digital mortgage smartphone apps improve borrower engagement and reduce document wait times. Back-office staff and interactions are limited in terms of processing, and lenders gain on cycle time.
Extending the digital experience to the borrower is not without its challenges. First, not all borrowers have the latest Android or Apple phone, so their mobile experience may vary. Second, borrowers differ considerably in technological sophistication. Where one user might need a few simple instructions, another might require in-depth guidance. In short, digital adoption becomes the bottleneck.
Here are some numbers for you. A survey of 400 users’ month-long mobile app adoption rates reveals that a staggering 39% of users abandon apps, while an additional 10% require extensive support before full adoption. 86% of all users require at least some support. Of course, the numbers above vary with task complexity and mobile UX quality.
In a nutshell, if you extend your digital mortgage UX to your borrowers, it is critical that you budget for technology support staff. Otherwise, you will experience serious customer satisfaction issues. If borrowers have trouble using your mobile solution, they will only be able to partially accomplish tasks. Your staff will experience increased workloads, and will have to spend time reconciling tasks that were completed and those that were left open. Budgeting for support will help you maintain long-term profitability.
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