Monday, October 21, 2019 / 07:01PM / By
fiserv / Header Image Credit: fiserv.com
latest Expectations & Experiences consumer trends survey from Fiserv, Inc. (NASDAQ: FISV), a leading global provider of financial
services technology solutions, finds that almost two thirds of people who have
applied for loans in the past two years now do so either partially or fully
online, representing a marked increase from 2018. A significant portion of this
growth is due to increases of smartphone and tablet use.
One of the longest running surveys of its kind, Expectations &
Experiences builds on years of consumer survey data to provide insight into
consumer financial behaviors and attitudes. A paper with details from
Expectations & Experiences: Borrowing and Wealth Management can be
"Today's borrower seeks a differentiated experience via any
channel they choose, and they are increasingly comfortable completing loan
applications through mobile devices, including their phones," said Byron
Vielehr, Executive Vice President and Senior Group President, Fiserv. "Consumers
have come to expect easy mobile experiences, and providing holistic, integrated
digital lending capabilities helps lenders meet borrowers' changing preferences."
and Mobile Loan Interactions Increase
The way that consumers apply for loans reflects their increasingly
digital lifestyles. Nearly two-thirds of recent loan applicants (65%) report
using computers or mobile devices to complete at least a portion of the
application, up from 56% in 2018.
Looking more specifically at the home loan process, increases in
the use of mobile devices include:
- 19% of consumers read loan documents
provided by the lender on a mobile phone or tablet, up from 10% in 2019
- 16% of consumers uploaded documents
requested as part of the loan approval process via a mobile device, up
from 9% in 2018
- 21% received their loan application
decision via their mobile device, up from 11% in 2018.
In addition, use of mobile devices to initiate home loan payments
almost doubled between 2018 and 2019, with 35% using this method in 2019
compared with just 18% the year prior.
When it comes to home loans, most people (71%) are "somewhat or
very comfortable" with the idea of completing loan applications online through
a laptop or desktop, up from 67% in 2018. The most notable shift is with mobile
applications, where 41% are comfortable, compared to only 29% last year.
Interest in mobile wallets as a home loan payment method is also
growing, with 24% of consumers expressing interest in using this method to make
home loan payments, compared to 13% in 2018.
Mobile Lending Concerns
Screen size (56%) and security concerns (51%) are the main
barriers to mobile loan applications, although there are options that would
make consumers more likely to complete the loan process via a smartphone or
Among those who are not at all or not very likely to complete a
loan application via smartphone or tablet:
- 22% say improved website security
would make them more likely to complete the loan process via a smartphone
- 17% say access to a representative
online would change their minds, up eight percentage points from last year
- The option to pause an application in
order to continue in person with a representative would sway 16%, a
six-point increase from 2018. The ability to continue online via a laptop
or desktop computer (16%) would also be persuasive.
- To speed up the loan process consumers are willing to take a
number of actions, for instance:
- 67% would be willing to
electronically sign documents using a mobile device (up from 59% in 2018)
- 61% would be willing to take pictures
of loan documents on a mobile device for uploading (up from 51% in 2018)
- 57% would be willing to allow the
lender to verify their identity by uploading a selfie from a mobile device
(up from 48%).
High Satisfaction with Home
Loan Processes, with Room for Improvement
After interest rates (50%) and fees (39%), customer service and
lender reputation are reasons for choosing a lender, with 37% and 29%
respectively giving those as reasons behind choosing a lender.
The majority of borrowers (69%) are satisfied with their home loan
process. Among the 31% who report not being fully satisfied, 51% say the
process took too long â€“ a 17% increase from 2018. Additionally, 46% say there
was too much paperwork involved.
Poor customer service (46%) and changes to the interest rate or
terms (41%) are given as the leading reasons why consumers abandoned a home
loan application, while the number who have stopped a loan that was in process
due to the lender asking them for the same document twice has doubled from 2018
The survey was conducted online within the United States by Harris
Poll from May 9-29, 2019. A total of 3,050 interviews were conducted among U.S.
adults ages 18 and older who met the following criteria: Someone in the
household currently has a checking account with a bank, credit union, brokerage
firm or other financial organization and has used their checking account to pay
a bill or make a purchase in the past 30 days.
In a world moving faster than ever before, Fiserv helps clients
deliver solutions in step with the way people live and work today - financial
services at the speed of life. Learn more at fiserv.com.
Expectations and Experiences: Borrowing
& Wealth Mangt - https://fisv.co/32nPV4O
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