Focus on the Borrower to Improve the Lending Experience

Contributors on The Point have blogged again and again about the proliferation of digital banking, both online and on mobile devices. Consumers are taking on an "anytime, anywhere" approach to banking, and ease-of-use is one of the most important factors in this experience.

Lenders cannot think they are exempt from the trend.

The ever-connectedness of consumers has raised their expectations, even when it comes to lending. Customers expect "right now" loan options, approvals and documentation, and lenders are behind the eight ball if they aren't responsive. Lenders can use technology to provide the best user experience for their customers – creating tailored experiences and providing a 360-degree view of the borrower.

The lending industry moves very quickly – lenders are running to stay competitive, reduce costs and manage risks – all at the same time.

Just like with digital banking, the user experience is a key factor when consumers are applying for a loan through different channels. Providing tailored experiences to borrowers gives originators the opportunity to clearly explain product options and loan terms that are personal to that customer.  Reducing the time it takes to complete loan processes and enhancing the overall loan experience for the customer certainly differentiates one lender over another.

Providing this tailored experience can not only put the customer experience on par with their other financial experiences, but it also helps to ensure compliance by making all customer interactions easily catalogued. The lending industry moves very quickly – lenders are running to stay competitive, reduce costs and manage risks – all at the same time. In my conversations with lenders across the country, everybody seems to agree that in order to manage this current environment, it's increasingly important to create a holistic view of each borrower. This is another key part of providing the optimal user experience.

Immediate awareness and analysis of borrower information, including application and closing transactions, is becoming a daily activity for lenders. It is also a best practice for the loan origination system (LOS) to be tightly integrated with the servicing platform, so that all the analytical information starts in one database and stays in one database. This approach provides greater insight about the consumer's financial status and behavior. In this way, lenders can more accurately work with borrowers to address their inquiries or concerns.

Having an eye on the user experience is one of the drivers we continually keep in mind as we incorporate new features and functionality into our technology solutions. For example, Common Origination Platform™ from Fiserv was designed using service-oriented architecture that supports mortgage, consumer and business lending on a single platform, with a comprehensive view of each customer's accounts.

Because consumers can use more than one channel to complete a loan application, lenders must have a sense of urgency about making sure that every transaction counts. Thriving comes down to exploring every possible way to use available technology wisely.

When it comes down to it, a happy borrower makes for a happy lender.

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