2011 MBA Online mobile and Social Media - The Emerging Trends

Download 2011 MBA   Online mobile and Social Media - The Emerging Trends

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The Mortgage Banking Association as me to present at the Annual Conference again this 2011. This time the topic was on Social Media, Mobile and online marketing as a topic of emerging trends in the mortgage business. My perspective was that of a mortgage lender and how to go about building a social media strategy. Here is what I presented.

TRANSCRIPT

  • 1. Online, Mobile and Social Media: The Emerging Trends
  • 2. Future of Technology The Emerging TrendsSPEAKERS Craig Focardi, Sr. Research Director, TowerGroup Rick Grant, Principal, RGA Joe Dahleen, Chief Strategy Officer, Mount Olympus MortgageTOPICS What are the emerging trends and what do they mean for my business? How is Social Media affecting business? What effect will Mobile Devices have on business practices? Evolving IT provides opportunity for companies to rethink their business model What does this mean for mortgage business leaders? 2
  • 3. The Mortgage Bankers Association and Social Media MBA Social Media Initiatives Hashtag pull on a column on Tweet deck Tweet us a question Hashtag for todays presentation: #MBAsocial Twitter Username: @MBAMortgage Hashtag for this conference: #MBAAnnual11 For more information after the conference, contact: Alicia Roundy, Director of Marketing Mortgage Bankers Association aroundy@mortgagebankers.org 3
  • 4. Online Lending, Mobile and Social Media in Financial Services Craig Focardi, CMB Senior Research Director 4
  • 5. Key Questions What are consumer preferences for shopping and buying financial products online? How is the rise of mobile devices impacting banking and lending transactions? Who is using social media in society and lending, and how are they using it? Blackberry PlayBook and Kindle Fire Is online lending a friend or foe of the mortgage loan officer? How can I link my branch, loan officer, online, mobile and social media channels? 5
  • 6. Watching the shift to Self-Service: Online learning and buying have gone mainstreamPreference to learn about financial products and services in the United States 18-34 30 45 4 6 6 8 35-54 42 37 1 4 8 8 55+ 47 24 1 4 15 9 0% 20% 40% 60% 80% 100%Preference to purchase financial products and services in the United States 18-34 48 30 3 6 5 9 35-54 63 18 2 4 1 11 55+ 73 10 03 3 12 Bars for Personal Petrol Stations 0% Personal20%for Restaurants Travel Hotels for 40% 60% 80% 100% 0% 50% 100% In person, face-to-face Online (website) Mobile app Phone Mail UnsureSource: CEB Financial Services Customer Experience Survey (2010) 6
  • 7. Customer satisfaction declines as mortgage processing time increases (2008-2010)(Days From Loan ApplicationTo Loan Closing) 70 Customer Satisfaction Rating (1) 60 52.1 Application to Close 50 46.9 Approval to Close 40 24.6 Application to Approval 30 26.9 30 20 27.5 10 20.0 Rating: 826 (2010) 0 78% of all loans closed 2008 2009 2010 in 28 days or less Source: JD Power , TowerGroup analysis (1) Scale of 1 to 1000, based on survey of consumers for each calendar year 7
  • 8. Mobile makes online mortgage lendingmore desirable and useful Mobile Expands online lending definition Fast boot-up, always on Mobile makes online lending accessible anywhere, anytime rate alerts Benefits loan status Better service, real time communications, document needs higher lead conversion, decrease cycle time approvals milestones Mobile email, phone, and web access helps integrate channels for consumer and loan officer 8
  • 9. Loan officers and branches are preferred retail channels, but online is growing Share of Retail Channels, Share of All Channels, Banks and Credit Unions (2010) Large Lenders (2006-10)(Percent) (Percent)80% 80% 71%70% 70% Banks (all sizes)60% 55% 60% Credit Unions50% 50%40% 40%30% 30% 22%20% 20% 12%10% 12%13%10% 5% 10% 0% 0% Loan Officers Branch Service Online/ Call Mail, Realtor, 2006 2008 2010 Personnel Center Other Online/Call Center Branch Source: MortgageBot LLC/Lieberman Research Group (All size lenders) Source: MBA/STRATMOR Peer Group Survey 9 (large lenders)
  • 10. Loan applicants are online all day, thereforeloan officers need to be mobile too Loan Applicant 10 PM Another meeting is Time to get ready running late for work, but first: Check mortgage I should be Good thing I can check Facebook web site (Loan working, BUT: check loan status approved received!) are rates down? Was my loan tell my spouse the update FB status 10 LinkedIn approved? Closing is on Friday to HomeOwner! requests Check Facebook call for late day care LinkedIn: apply for Should I lock? is appraisal in? Dinner reservations! new job to pay Smartphone mortgage 63MM users 10+ MM units sold 10
  • 11. Loan Officers Are already online and mobile; they need online Social Networks & Lead Gen Loan Officer I have a half hour 10 PM between meetings. Time to work out, Good thing I can see This Tablet computer but first lets see Face-to-face my new leads, check makes checking my selling is still core loan status, and tell what the market pipeline and replying to closing many Applicant the Closing is doing and to Applicants easier of my deals is on Friday without where rates are while watching the going back to office headed ballgameSource: TowerGroup 11
  • 12. (How) will online, mobility and social mediatransform lead generation and lending? Will the New Kids on the Block (and Survivors) Have Better Luck Than the Last Bunch (or Get Kicked Off the Island)? 2001 2001 2011 AppOnline.com LoanGenie Survivors Creditland.com LoanShark Lending Tree eJumbo Microsoft HomeAdvisor Quicken mortgage.com Loans E-LOAN New Homeshark Mortgage IT FaceBook Homespace.com? Mortgagebid Google iOwn Priceline Zillow LendingTreeSource: TowerGroup 12
  • 13. Conclusions and Recommendations Consumer tech is has caught up with consumer desires to buy mortgages online Low volume and cost pressures make online and mobile lending attractive $64,000 Question: Social media cannot be a Field of Dreams If you build it, will they come? Link corporate marketing with branches Must increase shopper-lead-app ratios Analyze and measure results using new analytics from other CPG industries (ex. Proctor&Gamble, J&J, GM, VISA and Citi using Fractal Analytics. Also Adobe SocialAnalytics, Claritics, Google, SAS 13
  • 14. Craig Focardi, CMB Sr. Research Director Thank you! For more information, visit www.towergroup.com. LinkedIn: Craig.Focardi Email: cfocardi@towergroup.com Twitter: @CFocardi 14...