Ideas & musings about consumer behaviour

Online mortgage applications are set to double, but are mortgage providers digital-ready?

Author: Marie Sheehan

According to research released this week from HSBC, the number of people who apply for a mortgage online is set to double from the nearly one in six homeowners who applied for their current mortgage online.

Not surprisingly over half of younger prospective homeowners aged 25-34 plan to apply for a mortgage online (compared to 19% of over 55s).

Mortgage providers are failing customers online

The findings of Global Reviews’ international mortgage providers digital sales effectiveness study* have just been published, and seems like a lot of home improvements need to be made.

Just two UK providers, Yorkshire Building Society and Nationwide, are currently meeting the needs of their customers on line.

All others are failing their digital customers.**

In fact as 33% is the industry average, all mortgage providers need some D(igitally) I(mprove) Y(ourself)

AIB is the best of the Irish mortgages providers with all others trailing much further behind.

Performance across the digital customer journey

As customers look to apply for a mortgage online move through the providers’ websites their experience deteriorates rapidly.

The digital customer experience starts off reasonably well as most mortgage providers successfully build trust with customers, introduce the product range and outline fees (while some are better at this than others).

However it all starts taking a downward turn at the evaluating options stage of the digital journey as most providers fail to adequately match their products to customer needs and few facilitate comparison.

customer journey

When it come to facilitating decisions, I don’t think it is any surprise that the banks are very poor at providing comparison with their competitors, but what I am surprised to see is that they are not very good at explain why a customer should choose them!

While all the mortgage providers are weak at revealing how customers can apply for a mortgage, only four banks provide the option to apply online.

Best performers across digital customer journey

best performers across journeyOnly two UK providers facilitate online applications

Only four banks from our study* enable customers to complete a full mortgage application online including Nationwide and Yorkshire Building Society in the UK while AIB is the only Irish bank to provide this facility.

However what is really interesting to note is that even though it quantity is small, the quality is high. They all score highly for the form itself and for the support that the banks give customers to enable them to apply online.

To arrange a call back or meeting to discuss this study in more detail, and find out more about the full scope of the research as well as the actionable insights Global Reviews deliver please contact us.

To register your interest for our free webinar on this study or to receive our free white paper, please contact us.

Read more about what we do 

*International Mortgage Providers Digital Sales Effectiveness study Q1 2014
Organisations included in the study:
UK: Barclays, Halifax, HSBC, Nationwide, RBS, Santander & Yorkshire Building Society
Ireland: AIB, Bank of Ireland, Ulster Bank & EBS
USA: Bank of America (to benchmark against a global leader)

**From our 14 years of experience of collecting and analysing data on over 35,000 consumer interactions and over 500 companies each year, we know when a Digital Sales Effectiveness score  means that a company is failing the customer.



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