Wooing the Millennials with Updated Mortgage Technology
The current times and subsequent years are bringing great opportunities for the mortgage industry. As per a recent survey, close to a billion people between their early twenties and late thirties are expected to form 50% of the US workforce by 2020, and 75% by 2025.
With the millennials having come of age, and now making vital decisions about having families and settling down, the mortgage business is going to be one of the industries that will have great chances of generating huge profits.
Although the millennial generation appears to be a captive audience group, banking on them blindly is never recommended. This pool of prospective home buyers is no way close to the borrowers of the previous generation.
Be it the way they work, communicate, shop, or enjoy, everything associated with them is unusual and unpredictable. Having grown up in a world surrounded by technology, they are the ‘digital natives’ for whom the internet, smart gadgets, and social networking sites are the basic requirements.
The set of people the millennials represent is absolutely skeptical about anything that is pushed forcefully by brands through marketing and advertising gimmicks. They rather choose to trust and invest in commodities that are vouched by their peers. Millennials are quick learners who gain knowledge about brands by actively researching online, finding out about the authenticity of the companies and how they are performing in the global arena.
Thus, this new target audience group is increasingly proving to be a challenge for marketers. Lending institutions now have to abandon their old techniques of converting clients. They have to come up with some really out-of-the-box strategies to bring themselves closer to the audience and win them over.
Following are some of the marketing techniques that lending institutions should apply to woo millennials:
- Build a Significant Story :
To connect with millennials, lenders need to expand the conventional boundaries of thinking and weave meaningful brand stories.
These stories should be authentic and created thoughtfully. They should explicitly point out reasons as to why the consumers should choose a particular lending organization. The answer to this question can be easily found in the brand’s unique selling proposition.
- Have a Stable, Robust and Extensive Digital Presence :
When it comes to connecting with millennials, more the communication media selected, better the chances of reaching out to the target group.
In spite of selecting many channels, sufficient care should be taken to include all possible digital channels, such as websites, apps, and social media. Lending institutions need to ensure that their digital presence is built around robust, all-encompassing mortgage technology solutions. This bouquet of solutions should include mortgage loan origination software with pricing engines, digital document capture and verification, automated underwriting and approvals. Mortgage servicing software, mobile apps, in-app communications for up-selling and cross-selling, pervasive social media presence etc. from the other major components of the mortgage technology solutions for the tech-savvy generation.
- Initiate and Nurture Personal Communication :
Nothing can win the hearts of millennials as easily as sincere, candid, and personalized conversations.
Build a sense of trust and persuade the target audience to take interest in what you are proposing by integrating data pertaining to their income, education, interests, and geography.
Big data provides the perfect opportunity to create customized and individualized content.
- Guide the Millennials :
It is not unusual for millennials to not know everything about a home mortgage. Benefits of owning a home, processing of mortgage loans, and various options associated with them are things that the target audience may be unaware of. Thus, marketers should ideally get into the shoes of educators and inform the target audience. However, millennials hate to be coached. Therefore, marketers need to wear the hat of consultants who guide the potential borrowers, as per their preferences.
The prospective clients should be fed with content in a way that they are able to reach the ‘aha moment’ in the most natural way.