Investments Lending

CBA LIVE: Your customers are ready for loan offers through your mobile app

But, are you ready to offer it?

The lending industry is now starting to take technology to the next level, moving from focusing on the user interface, such as mobile devices, to advances in automation and analytics.

Attendees gathered Tuesday morning in one of the larger conference rooms at the Gaylord Texas in Dallas to hear about the current updates to technology in home equity lines of credit.

The Consumer Bankers Association’s CBA LIVE conference focuses on all facets of the financial market, including student lending and default management. The Home Equity Lending track is one of the biggest.

The two panelists, Charles Sutherland, vice president of product strategy for Fiserv, and Rutger van Faassen, vice president of lending with Nomis Solutions, broke down the newest advances in technology: robotic process automation, predictive analytics, and artificial intelligence.

Sutherland opened up the session stating, “When you get to the heart of why the consumer experience is less than ideal, it’s because there is a time delay or something doesn’t work as efficiently as people expect.”

The three categories, robotic process automation, predictive analytics, and artificial intelligence, work to address this.

Sutherland and van Faassen seamlessly transitioned back and forth as they unraveled where home equity lending industy stands right now in adopting new technology.

However, rather than simply present facts from studies, the two asked the audience to answer various questions on their phone throughout their presentation to get the actual status of the audiences’ technological situation.

Here are some highlights from the questions the two asked the audience.

It’s important to keep in mind that audience members were addressing the questions from a HELOC-lending perspective.

Starting out, they asked, “Are consumers ready for a RoboBanker providing them with advice?”

Majority of the room said yes, within 3 years (45%), while 28% said consumers are ready now.

Along the same lines, the two asked, “Are your customers ready for relative real time offers through your mobile app?”

A surprising 67% said their customers are ready now, while 28% said within 3 years.

The two also asked, “Where is the most opportunity to enhance the application process online?” And to no surprise, 62% of the audience members said “submission of the initial loan doc.” The next answer was eSigning loan docs at 26%.

One interesting area that a lot of HELOC lenders were hesitant toward are comparison websites. The two panelists asked if audience members participate in comparison websites? Roughly 50% of the room said, “Whoa, we don’t want to sell on price.” In addition, 33% of the room said, “Yes, but we don’t know what the impact on our volume is.”

Ultimately, the two wrapped up asking if they think a true omni channel, where borrowers can smoothly transition from their mobile phone, computer to phone without problems, approach works from their banks?

On a positive closing note for consumers, 54% of those surveyed said yes. However, they expect it to be happening in three years. Meanwhile, 22% said they are currently working on rolling it out now.  

After all the questions, it became clear that the room was increasingly focusing on integrating greater technology into their processes. However, some of these changes could take around three years to come to fruition. 

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