Tuesday March 15, 2022
For most consumers, digital has become an expectation, even in the mortgage fulfilment space.
Traditional mortgage practices involve in-person meetings, witnessed signings, and excessive paperwork – a labour-intensive process. Over the past year, the drive for a contactless experience has switched from being a want to a necessity.
So far in 2021 Australia has seen a rise in the number of home loans, with owner-occupier commitments 75% higher than they were a year ago. At Galilee, we have seen that digital mortgage fulfilment saves time and money, with a host of other benefits, for both consumers and lenders. It’s time to revolutionize the mortgage process and help more Australians realize the dream of home ownership.
Here are Galilee’s 25 reasons to digitise the mortgage fulfilment process.
- It’s contactless and accessible.
Digital mortgage fulfilment is done completely online in a fully automated process. There is no need for in-person meetings. Not only is this a health precaution in our current times but it means clients can use a lender anywhere from Perth to Canberra. Right now, Australia has more first home buyers than ever – 60% more compared to a year ago. With these home buyer trends likely to continue, offering a digital, contactless mortgage fulfilment makes more options accessible to more people.
- Faster fulfilment times.
Let’s talk money. By streamlining the mortgage process with technology, some European banks have reduced their average “time to cash” from 40 days to just 18 days. This is due in part to online documents being available anywhere at any time. No more waiting for the post, damaged or lost documents, or clients who misplace or forget about the paperwork.
- Enhanced security.
Let’s face it – you never know who might open someone’s mail. And 1 in 4 Australians report they have been a victim of identity crime. Encryption in the cloud and two-factor authentication provide high levels of security against identity theft and fraud. Assure your clients they don’t have to guard their letterbox with encrypted digital fulfilment.
- Track document status.
With paper, you can never be sure if it makes it home with the client or ends up wedged in the car seat for weeks. With digital documents, you know exactly where your client is in the process and when you can expect to receive the signed copies. Bonus: no more coffee-stained paperwork!
- It’s easy to use.
You don’t have to learn a fancy new system. A simple, streamlined process integrates with your existing systems. Documents are created as usual, then uploaded and sent, so you can get on with your day – or take an extra coffee break.
- It’s what borrowers want.
A 2020 report showed that customers prefer to use digital channels for every step of their mortgage process. Another survey found that 70% of consumers prefer to submit documents online. Giving your customers what they want is just good business sense.
- Avoid manual duplication.
Forget copying the same information into document after document. Stop asking your clients for information you already have. With digitisation, the forms are pre-filled for you with existing data. It’s that simple.
- Give customers greater transparency.
Today’s consumers are used to being able to track everything from their Amazon packages to pizza delivery, and they expect the same level of transparency throughout the mortgage process. With digital mortgage fulfilment, borrowers can easily check the status of their documents, so they aren’t left in the dark about where they are at in the fulfilment process.
- Reduce human errors.
We all make mistakes sometimes. But eliminating manual paperwork cuts down on costly, time-consuming human errors. If an error is made in a digital document, it can be quickly corrected without having to start the process over.
- Stay competitive.
In Australia, 94% of Millennials (aged 23-38) say that it is important to them to own a home. Almost half of Millennials think now is a good time to buy a house. But if you hand a Millennial a paper form and pen, you’ll likely lose them to the competition with a digital process. Coming up after them is Generation Z, 41% of whom would rather lose their wallet than their phone. Today’s tech savvy customers expect to be able to do everything on their phone, including mortgage fulfilment.
- Speed up the signing process.
Everybody’s busy everywhere, so timesaving is a win-win for all. It’s estimated that 60% of online documents are returned within 3 days. With instant delivery and mere minutes for the customer to complete, sign and submit there’s no excuse for delays. Galilee’s digital signing platform, KWIL has achieved 84% borrower satisfaction from loan application to settlement.
- Relieve customer anxiety.
Your customers dread a long and arduous mortgage process. A slow process, excessive paperwork, and confusing jargon are their top 3 complaints. With digitisation the process is simplified, the customer feels more in control and therefore more confident.
- Remove settlement obstacles.
The current surge in the property market is overwhelming some lenders and increasing settlement delays. Following credit approval, most fallovers happen before the loan documents are signed. Fast and easy digital signing removes this obstacle and has resulted in a 75% decrease in fallover rate.
- Work with clients around the country.
By digitising mortgage fulfilment, you open up your ability to work with clients from all around Australia – and you can be based anywhere you like. Maybe Surfer’s Paradise sounds nice?
- Boost productivity.
Staff spend on average 2.5 hours per day searching for documents – that is 30% of an 8-hour workday. Automating repetitive tasks – like retrieving and filling out documents – will boost productivity, as staff can focus more time on important mission-critical tasks. Enable your staff to enhance their performance and watch productivity surge.
- Reduce the impact on the environment.
Loan documentation can be upwards of 50 printed pages, plus it must be transported back and forth from lender to client. Digitisation minimises paper production, waste, and carbon emissions. It also means your remote customers don’t have to waste fuel travelling to you.
- Requires minimal customer effort.
Customers can access their documentation anywhere and at any time via their mobile device. They don’t have to worry about getting two signatures, witnesses, or losing paperwork – it’s all done digitally with simple instructions. Anything more complex risks being put in the too-hard basket.
- Digital signing with confident verification of identity (VOI).
Using livesign’s technology, VOI occurs at the precise moment of signing. Documents are sent to the client with simple instructions on how to digitally sign and verify their identity. At the moment of signing, they are prompted to take a selfie which is biometrically and cryptographically matched to the high-resolution photo on their government-issued ID. Livesign is the only platform to offer secure digital signing with simultaneous VOI. Exclusive and impressive.
- Ensure compliance.
Never fear an audit again. Digital documents are time-stamped so compliance can easily be proven. Documents are sent instantly removing the stress of tight turnaround times. Plus, livesign’s digital signing with VOI process is compliant with ARNECC’s reasonable steps.
- Use artificial intelligence (AI) to improve the experience.
Digitisation introduces the option to utilize AI to identify ways to exceed your customer’s expectations while saving on costs. Personalized and efficient customer journeys are now the expectation – don’t be left behind.
- Approve loans faster.
Take advantage of machine learning (ML) to approve more loans faster and with better accuracy. For some, automated processes can provide a conditional approval in minutes. Currently in Australia, some banks are boasting as little as a day in approval time for existing customers and 10-12 days for new customers. Others report an average of 27 days. Buyers will flock to faster services.
- Lower costs.
It’s estimated that loan costs are lowered by 10% with digitisation. Using AI and ML provide the ability to make better risk decisions for greater profitability, plus no one is chasing up paperwork. New digital mortgage lender Nano says they will save a borrower $75,000 over the lifetime of their loan, with $12,000 saved in fees and charges alone.
- Automate income verification.
With digitisation, algorithms can be set up to analyse customers’ banking data automatically. Customers don’t have to provide paper copies of payslips and bank statements, and lending staff will no longer sort through the excess paperwork to verify income. These days, manual paperwork seems archaic when information can be communicated digitally.
- Stop discriminatory lending.
The New York Times reported that lenders with online processes see significant increases in traditionally underrepresented groups, including people of colour, LGBTQ couples and single women. Digital mortgage fulfilment opens the playing field for competition which could further reduce bias and discrimination.
- Digital with a human touch.
While consumers expect digitisation, they still want to be able to access a real human to explain things or to reassure them that they fully understand what they are getting into. It’s about building trust and respect. Digitisation can offer a personalised experience for customers, while empowering lenders to have all of the data they need in one place for efficient, productive conversations with clients.
Digital mortgage fulfilment allows lenders to process more mortgages, at a faster rate, with better service for borrowers in an easy streamlined process. If you have any questions on mortgage fulfilment and why you should go digital, contact Galilee today.