NEW YORK (PRWEB) JUNE 14, 2023
A new report from Arizent, the parent company of National Mortgage News, an information resource serving decision makers in the mortgage industry, analyzes how technology is playing a new role in customer-acquisition strategies. The research finds that mortgage professionals recognize the need for a customer acquisition strategy that includes tools like data science, mobile-first technology and social media to succeed with the next generation of customers.
The report indicates that customer acquisition is paramount for mortgage companies, with 98% of respondents ranking it as a priority and 82% calling it a critical or high priority for their business. Respondents from banks and credit unions (68%) and nonbanks (63%) rate it a critical need versus brokers (37%). As a result, these organizations are exploring a wide range of capabilities to attract Gen Z and younger millennials.
Companies in the sector all see a mobile-first strategy as the best way to engage with younger consumers. A little more than half of banks and credit unions and 60% of nonbank respondents say mobile outreach plans are their best method of approaching this demographic. And social media is considered crucial, with 93% of respondents classifying it as somewhat or very important for acquiring Gen-Z and 96% for younger millennial clients.
"It's a balancing act for mortgage companies, because older methods of lead generation still prove to be an effective way to develop and grow relationships," says Janet King, VP of Research at Arizent. "But the demographics of future borrowers and the ways they consume content are quickly changing. As a result, the mortgage industry will want to tap into new strategies and technology to attract younger customers."
The growth of data-science applications, such as artificial intelligence (AI) and machine learning (ML), is also projected to benefit mortgage companies through information mining and prospective outreach. Despite these promising advantages for client acquisition, only 36% of survey participants are aggressively leveraging these approaches and 38% say these tools aren't being widely applied yet.
The research shows that size proves to be a factor, with respondents from companies who produce greater than $1 billion in volume being three times more likely to aggressively utilize data science in lead generation compared to smaller businesses.
To read more detailed findings, download the full report here:
Research Methodology
Data was compiled in March and April 2023 through an online survey of 101 mortgage personnel involved in customer acquisition and lead generation at their companies. The respondent pool includes near-equal representation from banks and credit unions, nonbank lenders and servicers and mortgage brokers, with a smaller number of insurance companies. The 2022 origination volume of participant's organizations represents a split of 48% with less than $1 billion and 52% with $1 billion or more. Survey participants hold a variety of roles, with 46% serving as vice presidents or in C-level leadership positions.
For more information on this survey or other Arizent research, contact:
Janet King
Vice President, Research
Arizent
janet.king@arizent.com
M 207-807-4806
About Arizent
Arizent is a business information company that advances professional communities by providing insights and analysis and convening industry leaders. The company uses deep industry expertise and a data-driven platform to deliver its services, which include subscriptions, marketing services, live events and access to Leaders, an executive forum. Arizent also connects business communities through leading financial services brands like American Banker, The Bond Buyer, Financial Planning and National Mortgage News, as well as professional services brands like Accounting Today, Employee Benefit News and Digital Insurance.
About National Mortgage News
National Mortgage News is an award-winning comprehensive digital information resource serving the entire residential mortgage industry, including depositories, nonbank lenders and servicers, brokerage firms, vendors and regulators. In addition to providing news analysis and perspective, NMN convenes industry participants to provide insight on topics including regulation, compliance, technology and loss mitigation.