Acquiring banking customers online: win more home loan customers
In days gone by, converting a home loan customer was simple. Your bank would tell customers the rate and they’d ask where to sign. Customers had their favourite bank and they’d go in to their local branch to kick off the biggest purchase of their lives.
Now it’s all very different. Competition is fierce, the banking industry has been buffeted by the winds of royal commissions and inquiries and most customers will kick off the biggest purchase of their lives from their couch, while Netflix is on in the background.
Your brand, rate and offer may get them to your website. But how many of them go on to apply, be approved and then settle is dependent on much more than what drove them to consider you in the first place.
The digital age brings with it expectations, even demands, of speed, simplicity and entertainment. Customers don’t just want to fill out a form and be a number to their bank. They want to be engaged. They want to feel like the bank cares about their plans – even without ever meeting any actual humans who work at the bank. They want an approval decision in an instant. They want to be kept informed about their application. And, they want to do it all quickly.
That’s why, without focusing on a complete digital acquisition strategy – from the first time they visit your website, all the way through to settlement – your bank will be losing customers.
You could be losing as many as 85% of those who initially visit your website, according to McKinsey. And as many as 50% of those being lost between the time a customer starts an application form to completing it.
Now is the time to make a change to stop the flow of potential customers streaming away from your bank.
Sandstone Technology’s Digital Acquisition Strategy is the answer. In this Thought Leadership Article, we’ll delve into Sandstone’s key Digital Acquisition Strategy pillars and how you can apply those principles to improve your home loan conversion rate.
Old-school banking was traditional and straightforward. Customers usually took out a home loan with the financial
institution they already banked with. Sometimes they were lured to a different bank by posters or flyers offering a more
Regardless, once the customer stepped into the branch to enquire about a home loan, the bank’s best sales staff
would be there to convert the lead into a sale.
The digital era has changed all that.
Today’s consumers want to apply for a home loan the way they do their online shopping – from the comfort of their couch. And thanks to the internet, consumers can access information from anywhere at any time. By the time a potential customer decides to apply for a home loan, they will have already researched your bank’s deals and compared them with what your competitors are offering.
They’re ready to sign up.
But if your bank’s website simply gives prospective home loan customers a number to call, or requests they fill out some details so someone can call them, well, they’re likely to move on to a bank whose digital communications offer an immediate and more engaging home loan experience.
It’s not just about having an intuitive, bells-and whistles website either. There might be an online home loan application form, which the potential customer spends time filling out – only to be told they have to wait for the bank’s decision.
Research shows that 85% of customers who visit bank websites find the process so frustrating that they drop out before they’ve even completed the application form.
Digital customers are overloaded with information. They just want the process to be simple. At the same time, the process needs to give them everything they want and need.
Sandstone Technology believes that banks need a Digital Acquisition Strategy. One that puts the customer first– taking them from that first click on your website right through to settlement.
Doing the right thing by your regulatory obligations, while being customer focused, and keeping your team engaged is like trying to fit together puzzle pieces...
In the first half of 2021, Australians have experienced a major bottleneck in loan application approvals...
It is impossible to discuss the role of AI in financial services without highlighting that 2020 was hugely disrupted by COVID-19 and the ripple effect is expected to last for years...