Mortgage lenders and brokers want new technology to help them retain existing customers according to a recent study, DPR Group Mortgage Insights 20/21, conducted by DPR’s parent company. Latest research has identified that 63% of participants intend to implement retention tools in the next 6-12 months. These tools allow customers to make a product switch with their current lender without the involvement of back-office staff.
The cross-segment study was conducted by DPR Group in partnership with Smart Money People to provide the market with a complete view of the mortgage industry. Almost 2,000 participants responded including lenders, brokers and consumers.
The survey also showed that 91% of businesses who use retention technology found this effective at managing retention. However, among those surveyed, only 31% are currently using retention tools within their business.
Leading technology supplier DPR, part of DPR Group, provides a retention portal as part of its mortgage origination solution. This can be accessed by customers and brokers, to allow customers to switch to a new product on an execution-only basis, without significant effort from back-office staff or extra operational costs.
Nick Lawler, Sales Director at DPR, said, “Our research shows an increasing confidence in the sector aided by cutting-edge technology and a universal understanding of the fundamental role technology plays in business operations today and in the years to come.
“DPR will continue to develop solutions that meet the needs of lenders and consumers alike and our research has revealed exactly what those needs are.”
Product maturity is a critical time for lenders; 63% said over 40% of their existing customers switch products when their deal ends. However, some respondents without retention tools identified the switching process as a key challenge in retaining customers.
1,195,200 homeowners switched products with their existing provider during 2019, representing £167.4 billion of mortgage borrowing, according to data from UK Finance.
Previous work from the Intermediary Mortgage Lenders Association (IMLA) also underlines DPR Group’s findings on retention technology. This acknowledged the convenience of lender execution-only product transfers for customers.