Time to Move Out of Your Comfort Zone

By Bill Dolan, CMB, AMP

As the transformation within mortgage banking accelerates to digital banking right before our eyes, many community banks and credit unions are at risk of losing existing customers to their competition and are not engaging with the next generation. Sooner or later, these financial institutions may very well become inconsequential within their own footprint.

In a recent study conducted by Cornerstone Advisors, they listed the top primary bank customers in the United States as follows:

6. Citibank – 8,379,400

7. Chime – 7,957,800

8. U.S. Bank – 6,534,900

9. Capital One – 6,429,500

10. PNC – 5,691, 700

1. Bank of America – 28,405,800

2. Community Banks – 28,300,400

3. Credit Unions – 27,509,900

4. Wells Fargo – 20,342,600

5. J.P. Morgan Chase - 15,441,400

You are probably not surprised by the players listed above and how they stack up. However, pay closer attention to #7 on the list as Chime is a digital fintech company and two-thirds of customers at Chime named them as their primary bank. If Chime were just another traditional institution on the list, you would think nothing of it but given that the company saw a 3X increase with young customers within 1 year does not bode well for the traditional bank or credit union that does not have a solid strategy to win over future generations.

The same holds true within the mortgage banking industry today. Borrowers are looking for a better lending and customer experience and if you want to compete for their business, you will need to adapt a digital-first mindset. Remember, a phone in a borrower’s pocket is much closer than a branch down the street or across town. The mortgage industry was built on reams of paper and documentation, but this approach no longer works. Today, digital must be the primary point of entry for a mortgage lender for digital is the heart of the borrower’s buying journey.

To accomplish your entry into the digital arena, you will need a partner who is enthusiastic about and has the know-how to implement a digital mortgage environment.

SCA Mortgage Consultants know what digital lending looks like and how best to help your teams, departments, and your institution with your vision of this digital transformation process.

For a free consultation, please reach out and contact Bill Dolan at (617) 694-2617 to arrange a video conference call.