Considerable portion of borrowers still value personal interactions
Around one in five or 19% of homeowners feel that the technological features offered by lenders fall short of their expectations, a new report from mortgage software provider finova has revealed.
finova surveyed over 500 borrowers and 500 brokers to assess the time and effort involved in the homebuying process and identified opportunities for lenders to improve their digital solutions to meet evolving consumer demands.
The findings, contained in the report “Homeownership in the Digital Age,” showed that 42% of respondents still prefer traditional methods, such as phone calls, to resolve mortgage queries. Additionally, only 13% of borrowers reported a positive experience using chatbots, and just 12% found virtual consultations with mortgage advisers helpful.
Among the digital tools that were well received, 30% of respondents said they valued the online application process, and 23% appreciated digital document signing. Female homeowners and younger borrowers were particularly drawn to these features for their convenience and efficiency.
“Our research highlights some significant gaps in the market, confirming that lenders’ tech still has some way to go before it completely aligns with borrowers’ expectations,” said Chris Little (pictured), chief revenue officer at finova. “While the sector has upped the ante in recent years, and is increasingly adopting more digital solutions, there is still room for improvement.
“A considerable portion of borrowers still value personal interactions, and there’s no reason why they have to forgo the human element to reap the efficiency benefits that come with digital solutions.
“The popularity of tools like online applications and digital document signing demonstrates that there is a real appetite for technology when done right, but we need to take stock of how preferences vary across the board if we want to implement tech that is here to stay.”
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