Tag: digital consumer

Financial institutions have gone through a whirlwind in the last few years, with the pandemic forcing many to undergo digital transformations. More recently, rising interest rates and economic uncertainty are leading to a pullback, highlighting the need for lenders to level up their marketing strategies to win new customers. To get started, here are a few key trends to look out for in the new year and fresh marketing ideas for lenders. Challenges and consumers expectations in 2023 It might be cliche to mention the impact that the pandemic had on digital transformations — but that doesn't make it any less true. Consumers now expect a straightforward online experience. And while they may be willing to endure a slightly more manual process for certain purchases in their life, that's not always necessary. Lenders are investing in front-end platforms and behind-the-scenes technology to offer borrowers faster and more intuitive services. For example, A McKinsey report from December 2021 highlighted the growth in nonbank mortgage lenders. It suggested nonbank lenders could hold onto and may continue taking market share as these tech-focused lenders create convenient, fast and transparent processes for borrowers.2 Marketers can take these new expectations to heart when discussing their products and services. To the extent you have one in place, highlight the digital experience that you can offer borrowers throughout the application, verifications, closing and loan servicing. You can also try to show rather than tell with interactive online content and videos. Build a data-driven mortgage lending marketing strategy The McKinsey report also highlighted a trend in major bank and nonbank lenders investing in proprietary and third-party technology and data to improve the customer experience.2 Marketers can similarly turn to a data-driven credit marketing strategy to help navigate shifting lending environments. Segment prospects with multidimensional data Successful marketers can incorporate the latest technological and multidimensional data sources to find, track and reach high-value prospects. By combining traditional credit data with marketing data and Fair Credit Report Act-compliant alternative credit data* (or expanded FCRA-regulated data), you can increase the likelihood of connecting with consumers who meet your credit criteria and will likely respond. For example, Experian's mortgage-specific In the Market Models predict a consumer's propensity to open a new mortgage within a one to four-month period based on various inputs, including trended credit data and Premier Attributes. You can use these propensity models as part of your prescreen criteria, to cross-sell current customers and to help retain customers who might be considering a new lender. But propensity models are only part of the equation, especially when you're trying to extend your marketing budget with hyper-segmented campaigns. Incorporating your internal CRM data and non-FCRA data can help you further distinguish look-alike populations and help you customize your messaging. LEARN MORE: Use this checklist to find and fix gaps in your prospecting strategy Maintain a single view of your borrowers An identity management platform can give you a single view of a consumer as they move through the customer journey. The persistent identity can also help you consistently reach consumers in a post-cookie world and contact them using their preferred channel. You can add to the persistent identity as you learn more about your prospects. However, you need to maintain data accuracy and integrity if you want to get a good ROI. Use triggers to guide your outreach You can also use data-backed credit triggers to implement your marketing plan. Experian's Prospect Triggers actively monitors a nationwide database to identify credit-active consumers who have new tradelines, inquiries or a loan nearing term. Lenders using Prospect Triggers can receive real-time or periodic updates and customize the results based on their screening strategy and criteria, such as score ranges and attributes. They can then make firm credit offers to the prospects who are most likely to respond, which can improve cross-selling opportunities along with originations. Benefit from our expertise Forward-thinking lenders should power their marketing strategies with a data-backed approach to incorporate the latest information from internal and external sources and reach the right customer at the right time and place. From list building to identity management and verification, you can turn to Experian to access the latest data and analytics tools. Learn about Experian credit prescreen and marketing solutions. Explore our credit prescreen solutions Learn about our marketing solutions 1Mortgage Bankers Association (October 2022). Mortgage Applications Decrease in Latest MBA Weekly Survey 2McKinsey & Company (2021). Five trends reshaping the US home mortgage industry

Last year, my wife and I decided to take advantage of Experian’s remote-work policy and move back to my hometown, so we could be closer to family and friends. As excited as we were, the idea of selling and buying a home during the market frenzy was a little intimidating. Surprisingly, finding a home wasn’t our challenge. We lucked out and found what we were looking for in the exact neighborhood we wanted. Our biggest challenge was timing. Our goal was to sell our current home and immediately move into the new one, with no overlap of payments or having to put our belongings in storage while we temporarily stayed with family (or in a short-term rental). Once we sold our home, we had exactly 30 days to close on our new home and move in. Since this wasn’t our first rodeo, I felt confident all would go smoothly. Things were on schedule until it came time to verify our income and employment. Who knew something so simple could be so hard? Let me share my experience with you (crossing my fingers you have a smoother experience in place for your borrowers): Pay statements — I was initially asked to provide pay statements for the previous two months. Simple enough for most borrowers, but it does require accessing your employer payroll system, downloading multiple pay statements and then either uploading them to your lender portal or emailing them to your loan officer (which no borrower should be asked to do). This took me less than 30 minutes to pull together. Verification report — After reviewing my pay statements, my lender told me they needed an official verification report on my current and previous employers. At the time, Experian had just acquired Corporate Cost Control (now part of Experian Employer Services), a company that offers verification-fulfillment services for employees, employers and verifiers. I told my lender I could provide the verification report via Corporate Cost Control and they agreed it would be sufficient. This took me several days to figure out. HR information — Just when I thought we were good, I received an email from my lender asking for one last thing — the HR contact information of my current and previous employers. Obtaining this information from Experian was easy, but I didn’t know where to start with my previous employer. I ended up texting some former colleagues to get the information I needed. This too took several days to figure out. Finally, I got the call from my lender saying everything checked out and I was good to proceed with the underwriting process. Whew! What I thought would take 30 minutes ended up taking a full week and threatened our ability to close on time. And not to mention was a massive headache for me personally. This isn’t how you want your borrowers to feel, which brings me to the title of this blog, it’s 2022, why is mortgage employment verification so painful in today’s digital age? Other industries have figured out how to remove pain and friction from their user experiences? Why is the mortgage industry lagging? Mortgage employment verification made easy If it’s lack of awareness, you should know there are tools that can automate verification decisions. Experian Verify™ is a perfect example where mortgage lenders can instantly verify a borrower’s income and employment information (both current and previous employers), without needing to ask the borrower to track down pay statements or HR contact information. You can literally verify information in seconds — not hours, days, or weeks.  And the service supports Day 1 Certainty® from Fannie Mae — giving you increased peace of mind the data is accurate and trusted. This not only improves the borrower experience but increases efficiency with your loan officers. Tools like Experian Verify are a win-win for you and your borrowers. So, what are you waiting for? Modernize your experience and give your borrowers (like me) the frictionless experience they deserve, and if we’re being honest, are starting to demand. Learn more about income and employment verification for mortgage    

Previously, the Global Identity and Fraud Report called for businesses to meet consumer expectations for online recognition and security while improving the digital experience. Organizations have answered this call with investments and new initiatives, but the fraud risk persists and consumers are relying on businesses to protect them. In our latest report, we explore the issues associated with siloed recognition processes, consumer expectations and preferences, and effective risk strategies.   We surveyed more than 6,000 consumers and 1,800 businesses worldwide about this connection for our 2022 Global Identity and Fraud Report.   This year’s report dives into:   How online security yields engagement and trust with today’s digital consumers The role of businesses in protecting online consumers, and the associated benefits The current opportunity for businesses to implement multiple identity and fraud solutions The role that orchestration and outsourcing play in helping companies prevent fraud   To earn consumer trust and loyalty, organizations need to leverage automated solutions to identify and protect consumers across their online journeys while providing seamless recognition and low-friction fraud prevention with a robust and flexible fraud platform. To learn more about our findings and how to implement an effective solution, download Experian’s 2022 Global Identity and Fraud Report. Read the report Review your fraud strategy