Gallup senior practice consultant Sean Williams looks at what banks risk, and what they could potentially gain in reward, from their mortgage lending process and practices.
Williams draws on Gallup data that shows that almost as few as one in five mortgage borrowers (22%) reports that he or she is "engaged" with the mortgage provider. He writes about what that means, and what it could mean if a bank can turn that experience inside out:
Banks that can get this process right, however, can gain a serious advantage over their competitors. By engaging customers during the mortgage process, financial institutions can open the door to even more business with them. Nearly half of fully engaged mortgage-only customers (46%) also become retail customers of the bank holding their mortgage, compared with only 11% of actively disengaged mortgage-only customers.Fully engaged customers are also emotionally and psychologically attached to the financial institution, and they are more than twice as likely to return to the same institution when they need another mortgage. Nine out of 10 are extremely likely to recommend the mortgage provider to others (93%), compared with only 3% of actively disengaged customers.