STRATMOR Group explored various strategies banks and credit
unions can implement to gain market share and improve profitability in the
current tough mortgage market in its May Insights Report. Most of these
strategies revolve around improved execution of critical business development
activities, rather than on new investments in technology or systems, according
to a press release.
Principal Tom Finnegan outlined a roadmap for banks to
leverage their strengths and regain their competitive edge in the company’s May
InFocus article. He explained how traditional banks have some natural
advantages over independent mortgage banks (IMBs): large customer bases,
financial strength and product diversity. He also highlighted a critical
weakness in that many bank customers are unaware that their bank offers
mortgages.
To counter this weakness, Finnegan stressed the need for a
proactive approach with a greater focus on mortgage marketing and internal
referral programs, among other things.
“A plan for mortgage is the starting point. The goals must
be clear and understood throughout the bank to develop the right target
operating model (TOM),” he wrote. Finnegan recommended banks engage in
strategic planning by defining clear goals, targeting select customer segments,
and developing a compelling value proposition.
He also said banks should implement a dedicated mortgage
marketing team, train retail staff, leverage existing customer relationships
and create a user-friendly digital mortgage application process.
“Retail bank associates with routine customer contact, such
as personal or platform bankers, should be equipped with a well-developed
referral program that includes a meaningful benefit for those who engage with
customers to explore mortgage needs,” Finnegan wrote.
In a second article in the May report, STRATMOR Customer
Experience Director Mike Seminari offered tips on cultivating a unique company
culture to help individual lenders stand out from the crowd. Seminari used a
recent family trip to Disneyland to show lenders what “Disney magic” can teach
them about curating unforgettable experiences for mortgage borrowers.
“In a high-rate-mortgage environment, a unique company
culture is a way to stand out from the crowd. However, simply being nice to
your borrowers will not set you apart,” he said. “You need to be different —
unexpectedly and delightfully different.”