Digital Loan Applications Rise as Mobile Device Use Increases
October 21 2019 - 8:30AM
Business Wire
Fiserv survey shows consumers increasingly at
home with online task completion
The 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 downloaded here.
“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.”
Online 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.
Overcoming 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 tablet.
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 or tablet
- 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 – 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 to 36%.
Survey Method
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.
Additional Resources:
- Expectations and Experiences: Borrowing & Wealth Management
- https://fisv.co/32nPV4O
About Fiserv
Fiserv, Inc. (NASDAQ: FISV) aspires to move money and
information in a way that moves the world. As a global leader in
payments and financial technology, the company helps clients
achieve best-in-class results through a commitment to innovation
and excellence in areas including account processing and digital
banking solutions; card issuer processing and network services;
payments; e-commerce; merchant acquiring and processing; and the
Clover™ cloud-based point-of-sale solution. Fiserv is a member of
the S&P 500® Index and the FORTUNE® 500, and is among the
FORTUNE Magazine World’s Most Admired Companies®. Visit fiserv.com
and follow on social media for more information and the latest
company news.
FISV-G
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version on businesswire.com: https://www.businesswire.com/news/home/20191021005059/en/
Media Relations: Mark Jelfs Manager, Public Relations
Fiserv, Inc. 414-218-4019 mark.jelfs@fiserv.com Additional
Contact: Ann Cave Director, Public Relations Fiserv, Inc.
678-325-9435 ann.cave@fiserv.com
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