The research involved interviewing customers who, having attended a branch to apply for a mortgage, participated in a new telephone-based mortgage application process introduced by the society. Their reaction to the experience proved positive, and suggested that they would welcome use of other technologies to further simplify the process.
Under the lender’s process, customers can either call the society’s Skipton Direct customer service centre directly, or can pop into one of its branches for an initial conversation and be referred to a central specialist.
The study, commissioned by Skipton Group subsidiary HML and carried out by Principles Research, highlights the potential for organisations to centralise or outsource mortgage origination – so long as proactive communication with customers is maintained throughout.
Once they had been through the process, all of the Skipton borrowers interviewed reported that they were happy with their telephone experience and would be comfortable applying this way in the future.
The research also revealed that customers have an appetite for increased use of technology in general, for greater convenience and efficiency. Options such as screen-sharing technology were seen as particularly useful, especially for joint applications where individuals in different locations need to see the same information.
However, the participants also fed back that, for a telephone-based mortgage application process to work, lenders need to make sure they maintain customer satisfaction and keep them updated by ensuring consistent, clear and regular communication throughout the process.
They must ensure the customer understands the process and what they will need to provide at each stage. Lenders need to be in regular contact with applicants both before and following the telephone appointment, right through to loan drawdown and servicing.
Richard Hennah, commercial director at HML, said:
“The research clearly shows that traditional Skipton Building Society branch customers were positive about their telephone-based experience. In addition, the majority of customers were receptive to screen-sharing technology, a finding that was surprising considering that many had previously only bought mortgages or advice face-to-face.
“Our experience is that centralising the mortgage origination process - including through outsourcing - improves customer service quality, with consistently high standards, longer and more convenient operating times and the ability to speak to people in the comfort of their own homes at a time of their choosing.
“This, in turn, means banks and building societies can stay in closer touch with their customers, with communication a central part of the lender-borrower trust relationship. In addition to the improved customer experience, centralisation through a specialist call centre dramatically reduces the distribution costs while easing the compliance and management challenge.
“In short, this research shows that smart use of new technologies can provide an alternative means of delivering great customer service, combined with significantly enhanced control and reduced costs.”
