In today’s market, many consumers are looking to invest in their existing property. The resulting rise in demand for home equity products presents an exciting opportunity for lenders.
While this is good news for financial institutions looking to grow their businesses, successfully meeting this demand — and the rising expectations of today’s clientele — can be tricky. In fact, many consumers will consider multiple lenders before making a decision. And if expectations aren’t met, consumers aren’t afraid to take their business to a new, digital competitor.
What do consumers want from their home equity experience?
Here are three features that customers look for in their home equity loan experience.
Digital convenience
Whether they’re shopping online or browsing on-demand movies or TV shows, consumers are accustomed to a new level of convenience in their digital lives — and home equity is no different.
End-to-end consistency
Digital experiences lose their impact if they are interrupted by manual requests for documentation or disjointed solutions and portals. That’s why consumers often favor seamless experiences — smooth, uninterrupted, and efficient journeys — from application to close.
Speed
Paper-based applications and verification processes can slow the speed to approval, and manual underwriting and closing can delay the speed to funding. This can be frustrating for consumers eager to get started on whatever project an access to equity will unlock.
How can the cloud enable better home equity loan experiences?
Financial organizations are already turning to cloud banking software to reduce cycle times for products such as personal loans and credit cards. This technology works just as well for home equity products and can help lenders deliver a level of experience that is attractive to the consumer.
With a cloud-based platform, home equity providers can offer their customers:
- A seamless experience from application to close
A single, unified solution can provide digital continuity for clients. Features such as in-line guidance, data pre-fill, and digital closing can reduce friction and get customers over the finish line faster, minimizing the chance of application abandonment and increasing submit rates.
- Instant ID and income verification
With cloud-based solutions, consumers may no longer need to manually upload documents. Reduce bottlenecks, improve information accuracy, and increase transparency by letting your clientele instantly connect to their asset and payroll accounts and validate their data.
- Faster time to approval and faster speed to funding
In-built automation and intelligence can eliminate unnecessary steps in the application process and expedite underwriting. Rapid pre-approval and final approval, as well as instant verification of assets, can shorten home equity loan cycles and help clients reach funding more quickly.
- Greater personalization
Financial services providers delivering smart personalization are almost three times as likely to exceed their goals than low-maturity banks. With a cloud-based solution, lenders can leverage previously provided applicant information to personalize the experience and extend in-the-moment offers tailored to a consumer’s specific set of circumstances.
A better home equity loan experience pays off
Consumer behavior isn’t static — it’s always evolving, and the applicant’s experience should evolve too. This is where the unique benefits of the cloud shine.
By leveraging cloud banking software, lenders can not only achieve a holistic picture of their customers, but also adapt and change the products and services they are offering with a few clicks.
Ultimately, they can redefine their traditional offering and create the kind of end-to-end digital experiences that customers expect, both now and in the future.