1. 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

2. 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,
The Millennial Disruption Index ©2013 Viacom Media Networks
Zillow Group Report,
Today’s Home Buyer
Carter Kirks – Originally Presented on December 8, 2016 at Digital Media San Francisco

3. 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

4. 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.
Carter Kirks – Originally Presented on December 8, 2016 at Digital Media San Francisco

5. 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

6. 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

7. 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,
Carter Kirks – Originally Presented on December 8, 2016 at Digital Media San Francisco

8. 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

9. Don’t be the complacent cat