While more Americans are moving online for the mortgage process, a new survey shows that there is still hope for banks to not lose their customer to third parties.
Don Iannitti, president and CEO of DocMagic, told HousingWire earlier this year that this will be a big year for moving the mortgage market online.
“Currently, our biggest opportunity is going to be ‘riding’ the eWave. This means that we will be material in transitioning increasingly greater numbers of our customers to an eEnvironment that is highly regulated and highly competitive. Customers are unique and one size doesn’t fit all. It will be a time of great learning for everyone in this market --- everyone,” said Iannitti.
Meanwhile, according to the new survey from Accenture (ACN), while consumers overwhelmingly (86%) trust banks over other types of providers with their data, they shop elsewhere for more sophisticated, high-margin products. For example, only 48% get mortgages from their primary bank.
The survey is based on an online survey of 4,004 bank customers in North America conducted for Accenture by Market Knowledge Online between Jan. 19 through Jan. 26. Approximately 70% of the respondents (2,803) were in the United States and 30% (1,201) were in Canada.
“Consumers’ perception of their banking relationship as transactional and not advice-driven is growing at a rapid pace,” said Dave Edmondson, senior managing director of Accenture’s North America banking practice.
“Banks run the risk that consumers increasingly view them as a utility — a service for basic financial transactions — and not as the first choice for seeking financial advice," he said.
So how can you help keep ahold of your mortgage customers?
"Banks need to become more relevant to customers’ everyday lives, including recommending suitable products and services, whether these options come from the bank or third parties,” Edmondson advises.
The survey found that consumers shop around and choose sources other than their primary bank for high-margin products. For example, the majority of consumers said they went to other sources to purchase auto loans (70%), brokerage accounts (61%), registered retirement accounts (53%), financial advice (52%) and home mortgage loans (52%).
However, bank users are not trying to leave their banks in the dust.
Consumers would be interested in several additional services from their banks, including: discounts for purchases (54%); proactive bill-pay services (53%); product recommendations (52%); end-to-end assistance with car buying, such as help with negotiating a loan and providing vehicle recommendations (49%); and buying a home (46%).
And with these additional services, 27% say it would motivate them to apply for a mortgage with their current bank, even if it didn’t offer the most favorable rates.