New mortgage intermediaries are changing traditional banks’ approach to retaining customers. The fintech start-ups – Craggle, Stay or Go, and Elula – offer their services to banks, helping them retain borrowers.
Instead of viewing mortgage intermediaries as a cause of customer attrition, these new mortgage intermediaries, mentioned earlier, assist banks in preparing offers for customers who are seeking better loan conditions. The idea is based on the fact that most customers would prefer to stay with their current bank if they receive a sufficiently attractive offer.
Craggle, Stay or Go, and Elula create lists of customers who are most likely to switch banks and sell these lists to lenders. This allows banks to reach out to these customers and propose better offers. Within six months of launching, Craggle saved 700 customers $1.8 million in interest by negotiating mortgage loans worth $354 million.
A similar solution is offered by start-up Stay or Go. If customers were not satisfied with negotiated offers, they could use the service to switch banks. Both companies have automated the mortgage application process, creating a fully digital loan process.
Elula is the third company introducing a new strategy. This company collaborates directly with banks, using artificial intelligence to identify customers most at risk of switching banks. This enables banks to have effective conversations with customers and offer them attractive deals.
The innovative approach of these new mortgage intermediaries forces banks to offer more competitive deals to their existing customers. However, by using technology, banks can customize offers in a way that is not overly generous, allowing for profitability.
The modern approach of these start-ups heralds changes in the industry and may prompt banks to take more innovative actions to retain their customers.
FAQ:
1. What do the new mortgage intermediaries offer banks?
The new mortgage intermediaries, such as Craggle, Stay or Go, and Elula, offer their services to banks to help retain customers. Instead of considering mortgage intermediation as a cause of customer loss, these startups assist banks in preparing better offers for customers who are looking for more favorable loan conditions.
2. How do these new mortgage intermediaries work?
Craggle, Stay or Go, and Elula create lists of customers who are most likely to switch banks and sell these lists to banks. This allows banks to reach out to these customers and propose them better offers. Additionally, these startups automate the mortgage application process, creating a fully digital loan process.
3. What benefits do banks achieve from this new approach?
Banks, through this new approach, can more effectively retain their customers by offering them more attractive deals. For example, within six months of launching, Craggle saved 700 customers $1.8 million in interest through negotiating mortgage loans.
4. What technologies do these new companies utilize in mortgage intermediation?
Craggle, Stay or Go, and Elula leverage technology and artificial intelligence in their mortgage intermediation services. This allows them to effectively identify customers who are most likely to switch banks and create offers tailored to their needs.
Definitions:
– Mortgage intermediary: an individual or firm that acts as an intermediary between a borrower and a lender in the process of obtaining a mortgage loan.
Suggested links:
– Craggle
– Stay or Go
– Elula
The source of the article is from the blog anexartiti.gr