Why Borrower Engagement Matters Now, More Than Ever

It should come as no surprise that customer engagement matters for all businesses—it builds trust, establishes personal connections and company loyalty, and, most importantly, keeps business flowing in. But in the home lending world, borrower engagement isn’t just important—it’s essential. A 2015 Gallup poll demonstrated that 93 percent of borrowers who were fully engaged with their lender were most likely to recommend that same lender to family, friends, and colleagues (compared to 3% who were actively disengaged). 

That’s not all. The same poll showed that only 22 percent of those surveyed reported being fully engaged with their mortgage provider. With those stats in mind, lenders by and large are sacrificing a significant fraction of their potential business through a lack of borrower engagement. In this constantly evolving lending space, this needs to change—not just to keep customers happy, but to stay competitive and survive.

Now more than ever, borrowers hold the power. After all, they are the decision-makers in an oversaturated market with unlimited choices and flexibility—if they can’t find lenders who will meet their needs quickly and efficiently—they won’t hesitate to walk away and find a lender who can. 

The modern lender has to meet the challenges of the current landscape through meaningful connections and solid engagement right from the start—otherwise, they risk losing not only the client before them, but the ripple effect of potential referrals, as well. 

Borrower engagement is not only crucial to land clients, but to ensure those clients’ needs and expectations are understood and met. Borrowers seek out seamless experiences, which is why the convenience of a smooth, digitized experience is so appealing for them. 

The J.D. Power 2020 U.S. Primary Mortgage Service Satisfaction Survey reported that 62 percent of homeowners used their lender’s website as a primary source of information. Customer portals, mobile applications, and web interfaces were also popular tools for borrowers.  And, thanks to COVID restrictions and working from home, many new first time home buyers only know how to access mortgages through digital channels.

At the same time, our over-reliance on technology has resulted in digital fatigue. After more than a year of online-exclusive interaction, many people are suffering in some way from post-pandemic digital fatigue. Maybe it’s from a lack of in-person communication, constant virtual meetings, an overabundance of screen-time, or the mental stress of juggling multiple applications at once without ever leaving the computer. 

Whatever the case, it’s important to recognize the necessary balance between digital and non-digital communication. Lenders need to find a middle ground between too much and too little digital interaction and anticipate the needs of their clients. That way, borrowers feel important and cared (about without being overwhelmed or bothered). 

That’s why, moving forward, an emphasis on multi-channel communication, personalization, and automation is an absolute must for lenders seeking to modernize and better engage their clients. Using multiple channels, from SMS text messaging to phone calls, emails, and targeted ads, allows more direct connection based on clients’ own habits, while also ensuring the ideal means of getting in touch with and communicating with them whenever necessary. This not only guarantees successful interaction, but ensures that clients feel remembered as people, rather than numbers. 

The best way to do this is through mortgage automation, which is where we come in. Roostify is devoted to empowering lenders and loan officers to automate borrower engagement and communications at scale, guaranteeing a successful and individual connection with your clients.

We make it possible to quickly and easily automate your systems so that each and every client is engaged thoroughly and efficiently, making their experience more personalized and ensuring that your business isn’t bogged down with unnecessary busywork. Refocus your attention on what’s most important, and let us help with the rest. 

Look out for part 2 of this blog series that will have tips on how to keep borrowers engaged!

To learn more about mortgage automation and the Roostify platform, click here.