Many lenders are receiving an overwhelming number of loan servicing requests in recent months—but why? The impact of COVID-19 plays a huge part, but it’s also because of outdated loan servicing systems designed to support borrowers primarily via phone inquiries and handle payments and statements via back-office personnel.
Today, an ever-increasing number of borrowers expect a mobile experience not only in loan applications, but also throughout the entire lending cycle. Mobile loan applications are a requirement for competing successfully in the current economic climate. And just as mobile loan apps have benefited borrowers and lenders with their convenience, speed, and efficiency, mobile loan servicing apps do the same. When borrowers are granted greater control in managing their payments, lenders’ servicing workloads are significantly reduced.
If you’re not already providing a mobile loan servicing app for your borrowers, consider the below benefits.
Greater Client Satisfaction via a Mobile Loan Servicing App
A mobile loan servicing app using responsive-design technology works on leading mobile devices like tablets or smartphones. It automatically adapts to the device to provide an intuitive, easy-to-navigate experience. With anytime, anywhere access to account information, borrowers can:
- Check on their account balance and payment history.
- Download statements.
- Submit and confirm payments.
- Make secure changes to personal and contact information with ease.
- Obtain up-to-date loan payoff quotes.
- Review vehicle information and loan servicing information.
- Manage multiple loan accounts with a single, secure sign-on.
- Receive alerts or notifications regarding loan status.
A well-designed loan servicing app offers fully-configurable options (no programming needed), making it easy for lenders to customize the loan servicing app to match their lending process. The application can be configured to provide appropriate contextual help or guidance to deliver a smooth, intuitive user experience. A multilingual user interface allows borrowers to manage their loan account in their native language.
Consumers today expect a mobile experience to manage financial transactions. Giving borrowers greater control in managing their loan payments via a loan servicing app is one of the most effective means of meeting borrower expectations and boosting borrower satisfaction.
Reduced Loan Servicing Workload Equals Better Quality Service
Of course, a mobile loan servicing app won’t eliminate the need for loan servicing agents. Borrowers will continue to have questions and concerns about their loan status. They’ll need the guidance of lending experts, especially during times of economic uncertainty. A mobile loan servicing app reduces the servicing workload and simultaneously facilitates a better quality of service.
When servicing agents can focus their time on addressing these pressing issues, borrowers receive the level of attention they deserve. Agents have time to fully understand the situation, carefully consider the appropriate response or resolution, and provide the proper guidance. Borrowers experience a higher level of satisfaction, which is more important than ever given the economic challenges faced by many of today’s borrowers.
The back-office workload is also reduced. Borrowers handling payments electronically reduces the need to process checks manually, as well as print and mail monthly statements. This results in lenders experiencing immediate reductions in operating costs, which—depending on loan volume—can equate to significant annual savings. Not to mention that less printing has a positive impact on the environment.
Loan Servicing Apps: Win-Win for Both Borrowers and Lenders
Today’s consumers welcome the convenience of mobile financial transactions. Lenders who offer mobile loan origination are able to impress applicants with the speed and ease of their process, thereby increasing their chances of capturing loan opportunities. They can further boost borrower satisfaction with a mobile loan servicing app that delivers the convenience of having all relevant loan information immediately available.
defi SOLUTIONS provides mobile loan origination and servicing applications backed by configurable loan origination and servicing systems, as well as a wide range of technology-enabled BPO services. If you’d like your customers to experience the benefits of intuitive, anywhere, anytime loan origination and servicing applications via a loan servicing app, contact our team today or register for a demo.