15 February 2018

Speed Gives Mortgage Providers The Edge In Today’s Market

It’s no secret the demand for mortgages has risen sharply in recent times. Pent up demand for owner occupied homes, fueled by years of economic uncertainty is widespread as the economy heals and people gain confidence in the housing market again. The supply of homes – which is struggling to meet buyer requirements – also fuels demand. This, of course, is great news for mortgage providers. However, we all recognise that growth brings its own challenges.

Among the most important: how to create competitive advantage in a frothing market and deliver to new customers’ expectations.

The need for speed

When a customer (we’ll call them Steve and Sarah) walks into a bank to apply for a mortgage, or fills in an online mortgage application, research indicates they initially want only one piece of vital information: When? When will we receive mortgage approval so we can buy our new home?

Consider the steps Steve and Sarah have already taken up to this point. First, they have gone house hunting in a frantic market characterised by ever-rising prices and limited supply. Simultaneously they have used an online mortgage calculator to see if they might qualify for the necessary mortgage and repayments. Third, they have sought recommendations from friends and family regarding the mortgage provider they should approach. 

In this case we’ll say that Steve and Sarah are first-time buyers. They’re fresh from the hunt for a home. They’ve found one. Now they are approaching you for a mortgage.

At this point they’re not particularly interested in interest rates. Nor even monthly repayments. That will come later. The main concern is getting the green light to confirm their offer before it’s too late. Many buyers will tell you it’s a jungle out there, with hundreds bidding for a handful of new homes.

If your company can’t approve the mortgage at lightning speed to match the frantic pace of the competitive housing market, Steve and Sarah will walk out the door and go elsewhere.

Mortgage providers are already experiencing a new wave of digitally-led customers of the “on-demand” generation. This speed-orientated customer is becoming the norm, as more and more young people desperately try to exit to the rental market, and make the decision to buy their first home. The current lack of housing supply just amplifies the need for speed.

What does all of this mean?

The faster and more efficiently your organisation processes Steve and Sarah’s mortgage, the more likely you’ll win their business.

It’s as simple as that.

The Mortgage Origination process is a vital sales tool

So... you might think your Mortgage Loan Officer is primarily responsible for mortgage sales. You might believe your Mortgage Application Processing Teams have no real input into a successful sales win.

The reality is that the teams who process your mortgages are as important to the sales funnel as anyone else in your organisation.

So the bottom line for your business is, if you can make your mortgage application teams more efficient and productive – if they can process more mortgages quicker and with higher levels of confidence without sacrificing accuracy or quality – then you will gain competitive advantage as a provider.

Companies leveraging a competitive edge are more likely to prosper and deliver a better customer experience, resulting in happy, loyal customers.

Lightning speed Work Management delivers competitive advantage

Gaining competitive advantage may at first not look so simple. After all, your teams of mortgage application processors must follow a precise and demanding range of rule-based procedures which are also subject to audit and compliance requirements.

The key, however, isn’t the mortgage application workflow itself, but rather how that work is managed. What if your organisation could harness a work management platform with embedded automation and robotics to:

  • Quickly identify people within your teams who have more availability to share the load with team members who happen to be desperately busy
  • Allocate work based on key deciding factors such as skills, experience and authorisation levels
  • Track work accurately to determine if processing schedules are on-track
  • Promote flexibility and have the agility you need to reallocate work to other team members at short notice

Those are the characteristics of the technology you need to turn around Steve and Sarah’s mortgage application in record time. That is, by having the tools you need to assign the right team members to the right work at the right time and in turn meeting Steve and Sarah’s high expectations.

That’s the speed, flexibility, and agility your organisation needs to leverage – and maintain – competitive advantage. 

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