A new report on consumer satisfaction with HELOC lenders highlights the importance of a good digital offering
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A new report on consumer satisfaction with HELOC lenders highlights the importance of a good digital offering.
With TransUnion projecting a doubling of the number of American consumers taking out a home equity line of credit in the next 5 years, to 10 million, a new report says the digital experience will be increasingly important.
“Lenders need to recognize that the HELOC customer experience is a journey that begins with initial consideration and evaluation and extends through to usage, with each part of the journey affecting overall perceptions,” said Craig Martin, Senior Director of Financial Services at J.D. Power. “Increasingly, many steps in that process are occurring in digital and mobile channels, which are areas that the industry has been slow to leverage and refine.
In its 2018 U.S. Home Equity Line of Credit Satisfaction Study, J.D. Power says that established relationships with lenders remain important with two thirds of borrowers seeking information about HELOCs in person.
However, among millennial borrowers 59% search for information online using a desktop or laptop, and 50% use a smartphone or tablet.
“As millennial homeownership rates increase and home values continue to rise, lenders need to be able to meet these customers where they want to be, not try to force them into the lender’s entrenched methods,” added Martin.
Comparison of lenders is highest among millennials (80%) but 55% of all customers also shopped around for their HELOC.
There is also an opportunity to gain satisfaction among borrowers by addressing their concerns, with 66% saying they were concerned about obtaining a HELOC product.
“Steadily rising home prices, rising equity in the home and growing competition among lenders creates an opportunity for homeowners to tap into a low-cost source of funds,” Martin added. “The findings in this study are not only instructive to lenders on how to better tailor their customer offerings and processes to create a better experience, but they also provide a valuable guide to consumers on what to look for when shopping and applying for a HELOC product and choosing a partner for their borrowing needs.”
- SunTrust Bank (869 on a 1,000-point scale)
- BB&T (860)
- Huntington National Bank (851).
The industry average score is 837.
