thinking about today’s digital consumer Boise Idaho, March 5, 2018 How lenders need to be thinking about today’s digital consumer Presented by Greg Blake Carter Kirks – Originally Presented on December 8, 2016 at Digital Media San Francisco

Millennials have arrived Boise Idaho, March 5, 2018 Millennials have arrived Millennials characteristics2 Services expectation from millennials as customer First digital native Tech savvy Quick adopter to new technology Social and connected Heavily dependent on mobile device Expect real-time accessibility Care about customer experience Less money to spend Prefer consuming to owning 60% are renters up from 52% pre-crisis Encumbered with debt Focused on value otherwise share Student debt has doubled in 10 years Different priority Want customized on-demand services 93% plan on home ownership and 70% on marriage but median age is now 30s 10% Silent Generation 77M Retired (mainly baby- boomers) Age 51~70 16% Baby Boomers 92M Millennials Age 15~35 US populations between age 15 and 70 (2015)1 31% Gen X 61M Gen X Age 35~50 42% Millennials US Census Bureau Data Story: Millennials, Goldman Sachs, http://www.goldmansachs.com/our-thinking/pages/millennials/index.html The Millennial Disruption Index ©2013 Viacom Media Networks Zillow Group Report, 2016 http://www.zillow.com/research/zillow-group-report-2016-13279/ Today’s Home Buyer Carter Kirks – Originally Presented on December 8, 2016 at Digital Media San Francisco

Channel preference by loan phase and generation Boise Idaho, March 5, 2018 Channel preference by loan phase and generation Research Loan types/ rates Apply for a loan Submit documents Review documents Sign documents Pay up-front costs Digital 18-34 (Millennials) 35-54 (Gen X) 55-72 (Baby Boomers) 73-83 (Silent Generation) 50% of respondents Traditional n = 1951 Carter Kirks – Originally Presented on December 8, 2016 at Digital Media San Francisco

Generation Z – How will lenders meet their needs? Boise Idaho, March 5, 2018 Generation Z – How will lenders meet their needs? By 2020, Generation Z will represent 40% of consumers Attention span limited Focus will need to be on providing them with “engaging and immediately beneficial experiences” 40% 1. http://www.fastcoexist.com/3045317/what-is-generation-z-and-what-does-it-want Carter Kirks – Originally Presented on December 8, 2016 at Digital Media San Francisco

Consumers are ‘always on’ Boise Idaho, March 5, 2018 Consumers are ‘always on’ What does a digital mortgage experience need to deliver? Individual Accessibility – Anywhere, Anytime, Right Now Search for homes, apply for financing directly on the app or website Customized on-Demand Mortgage Products Personalized mortgage loan choices based on data Communication at your fingertips or click of a mouse Speak to loan officer and avoid multiple points of contact

A Loan officer in your pocket… An online application isn’t enough Boise Idaho, March 5, 2018 A Loan officer in your pocket… An online application isn’t enough A lender’s digital process should adhere to core principles: Borrowers don’t expect any less personal support when transacting online Guide borrowers through the process Streamline the application Remind borrowers that you’re in this together Provide personalized, timely information Be transparent Support the entire ecosystem Carter Kirks – Originally Presented on December 8, 2016 at Digital Media San Francisco

Engage the influencers Boise Idaho, March 5, 2018 Engage the influencers 69% of buyers used referrals from an agent or other trusted source to find a lender 69% of buyers said they consulted online resources, including Search engines 46% Real estate sites 43% Personal finance sites 45% 87% of buyers use online resources and 75 % select a real estate agent or broker to work with, suggesting that most buyers combine self-directed research using websites and apps with the market expertise and human touch offered by a real estate professional Consider partnerships with Home Search sites Offer a Real Estate Agent Portal 1. Zillow Group Report, 2016 http://www.zillow.com/research/zillow-group-report-2016-13279/ Carter Kirks – Originally Presented on December 8, 2016 at Digital Media San Francisco

What should lenders be thinking about? Boise Idaho, March 5, 2018 What should lenders be thinking about? Conduct Customer Research – Anticipate the Future Needs Define a Customer Strategy Conduct Customer Pain Point Identification and Root Cause Analysis Peer Benchmarking of Digital Capabilities Implement a New Borrower Portal or Enhance Your Existing Platform Integrate With Technology Service Providers Is my customer experience competitive? Will it still be in 2 years? What customer pain points are caused by poor digital experience? Should I build, buy, partner? Make Customer Experience Your Differentiator Carter Kirks – Originally Presented on December 8, 2016 at Digital Media San Francisco 8

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