Applying for a mortgage can be a grueling experience. Even though the industry is investing in better technology to improve the process, many borrowers still relate the experience to a financial investigation. Financial institutions feel the growing demand for better user experiences as new borrowers prove they’re willing to go anywhere to get it – even if it means making one of the biggest purchases of their life through an unknown fintech company.
It’s not shocking news that digital natives have a digital presence so deeply intertwined with their daily lives that they’ve grown accustomed to an on-demand lifestyle. Despite the common misconception that Millenials (loosely defined as individuals born between 1980-1996) aren’t buying homes, they’ve in fact surpassed Generation X (1965-1980) as having the largest share of loan originations by dollar volume.
Millennials overwhelmingly prefer online lending and have far higher expectations when it comes to customer experience than previous generations. Large banks have lost over 50% of their market share in the last 7 years, while online lenders have grown by 100%.
For Millennials, online lenders offer a quicker, more streamlined, easy-to-use experience. To gain digital natives as customers, mortgage lenders must deliver:
- Highly personal, premium customer attention
- Fast communication and processes
- Streamlined, trustworthy technology
- Easy-to-use interfaces and apps