Operational leverage: The opportunity lenders need to address | Blend

Operational leverage: The opportunity lenders need to address

Our new ROI study results show how Blend’s Mortgage Suite can help lenders in tough markets.

According to MarketWise Advisors’ second annual return on investment (ROI) impact analysis and performance review for Blend, some of the biggest benefits Blend customers are experiencing include seeing an increase in both transaction speed and pull-through. Understanding the value we bring to our customers is an important part of our mission and values. We don’t succeed unless our customers do.

What Marketwise Advisors found was that while process automation and cycle compression played an important part in our customers’ success, one of the biggest impacts was the increase in operational leverage that came with using the Blend Mortgage Suite.

Read on below to discover how operational leverage can help lenders retain customers and improve closing rates in a tight margin market.

What is operational leverage? 

Operational leverage measures the average productivity increase due — in this case — to Blend technology. By calculating our customers’ increase in transaction speed, increase in closing percentage, and the overall financial impact of operational leverage, we can conclude an average financial impact per file: $448 in operational leverage alone.

Why is operational leverage important? 

Operational leverage is one of the biggest opportunities for lenders to increase their ROI. The other major variables studied were process automation and cycle compression.

In addition to more free time for other customers and more business, moving loans faster through the mortgage origination process also decreases customer fallout and increases pull-through. This can result in additional incremental loans and a potential incremental impact of $448. According to the MarketWise Advisors survey, Blend customers reported a 37% increase in transaction speed and a 34% increase in pull-through.

How can you focus on operational leverage? 

In order to maximize productivity, Blend users must use the Mortgage Suite to its full potential — including taking advantage of our full library of tech tools and features. By using more of our offerings, our users can increase transaction speed, borrower pull-through, and ultimately, impact.

Increase business while decreasing costs

While lenders have seen and experienced a turbulent market recently, our customers have found that using the Blend Mortgage Suite and its features have helped alleviate the impact. By leveraging all the tools at their disposal, lenders can maximize their productivity and potentially increase their ROI while decreasing their cost of origination.

But don’t let us be your only source of truth. Our customers can speak for themselves.

Learn more about how our customers are taking advantage of automation to cut nine hours from the origination process, decrease the loan lifecycle by seven days, and improve their ROI.