How Modern Lenders Can Offer an Efficient, Personalized Experience for Borrowers

These days, borrowers seek an efficient but personalized experience from lenders. By using various strategies and technologies, modern lenders can provide personal recommendations geared to each individual and to helping the borrower through the entire process.

Personalized Banking

Lenders know that the personal touch makes a huge difference. That was true in the past, and remains so in the digital age. Modern lenders can create a personalized banking experience by employing user-friendly technology to ensure the borrower understands how the system works. Formerly, borrowers often felt intimidated by the process, but now they have knowledge based on their data and mortgage comparison algorithms.

Tools like ScoreMaster provide lenders and borrowers with not only an invaluable service, but also a highly personalized one. It’s a win-win situation for both, since lenders see more-qualified borrowers and borrowers receive better loan access. While adding up the money saved over the life of the loan with a lower interest rate is straightforward, there’s a more subjective value: the good generated by helping a borrower achieve their best possible credit score and obtain the most-attractive loan. 

Custom Loans

Nothing says personal like a custom-tailored item, and that includes mortgage loans. When browsing lenders, see if they can offer you customized mortgage loans. Such loans, geared to the needs of the individual borrower, offer great flexibility. Rather than play on any weaknesses in a borrower’s history, a custom loan plays on the strengths.

For example, if the borrower does not have the cash needed for a down payment, but does have assets to pledge, that’s a consideration. So is providing loans for those who might have difficulty with obtaining a traditional mortgage, such as a non-resident alien. You might provide different financing options for the self-employed borrower than for an applicant in a salaried position.

Fintech Trends

While fintech was disrupting other aspects of consumer lending, the mortgage industry was not yet on the new lending tech bandwagon. That is no longer the case, although fintech loans are still more common for business, personal and commercial real estate loans than home mortgages. Fintech allows lenders to make personal — and very fast — lending decisions based on automatic verification processes and underwriting in real time.

The formerly fragmented mortgage industry comes together in fintech. The simple buying and selling of a house involves an incredible amount of data. Issues with income verification, appraisal, insurance, title searches — not to mention the actual contracts — made much of the process less than efficient. Now, artificial intelligence (AI) systems designed to retrieve information from both databases and digitized documents streamline lending and boost turnaround time.

Not all general fintech trends have yet reached mortgage lenders, but that should change. For example, mortgage lenders are not yet accepting cryptocurrency as down payments for a home, but that could prove the wave of the future. Other startups are looking into replacing the current means of recording ownership and titles with encrypted blockchain ledgers.

Systems such as Blend are designed to weed out fraud based on documentation analysis and applicant behavior. This allows lenders to avoid wasting time on such applications during origination. The lender also won’t lose money because a fraudulent loan was made. Currently, the rate of fraudulent loans is on the rise, so such systems are long overdue.

How ScoreMaster Can Help

Lenders looking for ways to help borrowers achieve their goals should look no further than ScoreMaster. Our gamified system, using the latest and more-accurate data, allows borrowers to secure the best possible loans while gaining a good, thorough understanding of their credit. Let ScoreMaster help you use a top tool for bringing in qualified and motivated borrowers. Contact us today for a free consultation.

*Legal Disclaimer – ScoreMaster is a patent-pending educational feature simulating credit utilization’s effect on credit scores via payments or spending. Your results may vary and are not guaranteed.  

References:

1. https://readwrite.com/2019/04/18/fintech-is-changing-everything-in-the-mortgage-industry/
2. https://builtin.com/fintech/fintech-lending-applications

Categorised in: Lending Tips

This post was written by David B. Coulter