The study found that the industry’s slow adoption of mobile technology has left many customers reliant on outdated websites or offline communications. While some service providers have developed apps that meet industry standards, many still lag behind the digital tools offered by other financial services providers.
“Mobile is the future of lending,” said Bruce Gehrke, senior director of wealth and lending at J.D. Power. “There is no more effective way to be there at the precise moment when customer decisions are being made, and mortgage lenders that get their app formulas right are starting to realize that having a great app is essential to driving customer engagement and brand loyalty.”
Gehrke said today’s borrowers expect a convenient digital experience.
“Mortgage servicers have invested heavily in modernizing tech stacks and improving operational efficiencies to deliver additional value behind the scenes. However, that same level of investment has not been consistently applied to mobile apps across the industry,” he added.
Mortgage servicing apps receive an average satisfaction score of 704 on a 1,000-point scale, which is 22 points lower than mortgage servicing websites. Wealth apps scored an average of 38 points higher, while apps for pension providers scored 35 points higher.
The research shows that only 44% of service apps offer basic reliability and a sleek, modern design. Far fewer offer features that borrowers say add real value. Only 12% allow users to easily set alerts, make additional principal payments, or identify potential security deposit shortfalls or overages.
As a result, differences exist between the service providers. Bank of America topped the rankings with a score of 784, which was 71 points above the industry average for apps and websites. Pursuit in second place with a score of 762, followed by Wells Fargo Mortgage at 754.
“The overall framework of an app experience is built on the core pillars of intuitive navigation, fast performance and visual appeal,” said Jon Sundberg, senior director of digital solutions at JD Power.
“Many mortgage servicing apps lag behind the top performers in other industries when it comes to these essentials. With only 44% of apps providing a fundamental user experience, there is a lot of room for improvement in this area.”
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