Non-bank lenders begin to close the customer satisfaction gap with Nimble Digital Solutions
TROY, Michigan, July 29, 2021– (BUSINESS WIRING) – During the pandemic, mortgage companies across the industry achieved high levels of customer satisfaction, increasing overall satisfaction by a significant six points this year (on a 1,000-point scale) through a combination of relief efforts and rapid digitalization. However, according to JD Power 2021 US Primary Mortgage Servicer Satisfaction Study published today, all this goodwill caused by the pandemic is at odds with a larger set of customer experience issues, especially for bank-affiliated lenders. As loan-opt-out programs come to an end and more normalized customer interactions resume, traditional banks are beginning to lose their edge over non-bank lenders.
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U.S. Primary Mortgage Satisfaction Survey from JD Power 2021 (Figure: Business Wire)
“Mortgage employee satisfaction has been bolstered by the industry’s response to the pandemic, with some of the greatest gains in customer satisfaction coming from high-risk and moderate-risk clients who participated in tolerance programs,” he said. Jim Houston, Director of Consumer Lending Analytics at JD Power… “However, looking at the behavior of customers after the pandemic and the response of low-risk customers, we can see that the increase in satisfaction can be short-lived. In fact, despite the focus on assistance programs, nearly one-fifth of current mortgage customers have not interacted with their service staff over the past year. Mortgage companies serving mortgage loans will really need to step up their customer acquisition games as the market stabilizes. ”
Below are some of the key findings from the 2021 study:
Services affiliated with banks are beginning to lose their advantage over non-banking organizations: While overall satisfaction has increased by six points this year, the bulk of that increase is attributable to non-bank service providers, which see a significant 17 point increase in satisfaction. Bank-affiliated service companies, which have historically outnumbered non-banks by a wide margin, received just four satisfaction points this year.
The abstinence lift won’t last long: Another key driver of customer satisfaction this year is the high-risk customer category. Overall satisfaction for at-risk clients increases by 15 points per year, while the satisfaction score for low-risk clients decreases by one point. Likewise, satisfaction in the study was greatest among clients who participated in abstinence programs (846). For comparison: 783 points among those who have never participated in any program, and 776 points among clients who previously participated in the program, but no longer participate in it.
Banks get increased satisfaction from non-mortgage services: Higher overall satisfaction scores for bank-affiliated service personnel are inflated by non-mortgage services. Customer satisfaction scores for customers who also use banking products for service personnel are 55 points higher than customers with only mortgage relationships.
The need to expand interaction through digital self-service channels is obvious: Although website usage has increased by five percentage points this year, the online channel still needs to be improved. Only 38% of customers say they found the information they were looking for on their service provider’s website on the first two pages. When customers had to visit more than two pages, overall satisfaction dropped by 55 points. Among the clients who indicated that they would change lender if given the opportunity, the main reasons, in addition to higher rates, were “better / better customer service” and “easy access to help themselves get information about my loan.”
Rocket mortgage (which includes Quicken Loans) for the eighth consecutive year ranked # 1 in mortgage banking with 860 points. Guild mortgage (825) ranks second and Huntington National Bank (824) ranks third.
The 2021 U.S. Primary Mortgage Satisfaction Survey measures customer satisfaction with the mortgage service experience across five factors: customer engagement; communications; billing and payment process; escrow account management; and new client orientation. The study is based on responses from 8,507 clients who initiated or refinanced over 12 months ago. It was exhibited from March to May 2021.
For more information on the US Primary Mortgage Satisfaction Survey, visit https://www.jdpower.com/business/resource/us-primary-mortgage-servicer-satisfaction-study…
To view the online press release, visit http://www.jdpower.com/pr-id/2021086…
About JD Power
Jd power is a global leader in consumer information, consulting, data and analytics. A pioneer in using big data, artificial intelligence (AI), and algorithmic modeling capabilities to understand consumer behavior, JD Power has provided accurate industry insights on customer interactions with brands and products for over 50 years. The world’s leading companies in major industries rely on JD Power to deliver their customer strategies.
JD Power has offices in North America, Europe and Asia Pacific. To learn more about the company’s business offerings, visit JDPower.com/business… The JD Power auto buy tool can be found at JDPower.com…
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