A mortgage is one of the most complex banking products. The multi-stage process involves numerous departments within the bank. Furthermore, it is governed by legislation and internal procedures. For years, it relied on paper forms and visits to the branch.
The ideal scenario is, of course, a fully digital mortgage and a digital application process. In this model, the customer does not have to leave home at any stage. The decision and the agreement are finalised within a few hours. Full automation eliminates the need for unnecessary visits to the branch.
Digital loan applications – the first step towards transformation
Where can I submit an online mortgage application?
Digital applications can work in several ways. The first option is online or mobile banking for logged-in customers. The second is a dedicated service on the bank’s website that is accessible without logging in.
In the case of an open platform, data security is of paramount importance. Equally important is KYC identity verification in accordance with the bank’s procedures.
On the Polish market, mObywatel is the optimal verification tool. It allows customers to verify their identity quickly and conveniently. An alternative is verification via a selfie showing the customer’s face and their identity card. However, this method is more cumbersome, as it requires manual verification by a bank employee. Logging in via another bank is also becoming increasingly common.
A simple form – the key to conversion
Application forms should be as simple as possible. Furthermore, they must be written in clear, understandable language. Only the necessary data should be collected.
The scope of the data depends on the procedures of the specific bank. It also depends on the stage at which this data is required. For example, if creditworthiness has already been assessed, there is no need to collect income data again.
As a standard procedure at this stage, personal and address details are collected. This is supplemented by information on liabilities, income and household expenses. In addition, the customer provides the required consents and declarations. The loan parameters – the amount, term and interest rate – are also defined.
It is also important to be able to attach documents in various formats. The bank must validate the files submitted. This applies to both the correctness of the formats and security.
Signing and verifying the application
Once the data has been collected and consents obtained, the application must be signed. It is standard practice to confirm this via an SMS code or mobile authorisation. Both methods uniquely identify the customer.
The application is then reviewed by an adviser or a bank employee. The main focus is on checking that the attached documents are in order. The application is then forwarded for further analysis.
That concludes the digital part of the process. The subsequent stages follow the traditional route. Finally, the customer signs a paper contract.
The benefits of digital applications
Nevertheless, digital applications alone bring tangible benefits. For the customer, this means spending less time at the branch. Instead of filling in a confusing paper form, they complete a user-friendly online application. What’s more, the data is validated in real time as it is entered. The customer can do this anywhere and at any time.
For the bank, in turn, this saves on the time spent by advisers. Furthermore, the costs associated with paper applications and document scanning are reduced. The data is digitised immediately and in the correct format. As a result, reporting and further processing become much easier.
Remote customer service – a mortgage without leaving home
The choice of which area to digitise depends on several factors. In addition to technological capabilities, the bank’s infrastructure and reach are also important. For institutions with a smaller branch network, the full digitisation of customer relations is particularly attractive. This means the bank does not need to ask customers to visit a branch at any stage.
However, this model requires a few additional elements. First and foremost, the bank must submit the documents electronically. Next, the customer must be given the opportunity to submit any missing documents. Furthermore, it is essential to collect and record the necessary consents – including, for example, consent for a BIK credit reference check.
However, the biggest challenge is signing the loan agreement remotely.
Qualified digital signature – security and legal validity
When signing a mortgage agreement remotely, the customer must feel secure. They must be certain that the signature is valid and legally binding. This applies to both their own signature and that of the bank employee.
Such a contract cannot be signed using an SMS code or mobile authorisation. Therefore, a qualified digital signature is the best solution. The bank may use external electronic signature platforms. It may also use its own IT tools.
Customer relations in a remote working model
It is particularly important to support customers who are served entirely remotely. Someone signing a contract for many years must feel at ease. That is why they need easy access to information at every stage of the process.
The best solution is to assign a specific adviser to each customer. This specialist will guide the customer through the entire process. As well as having the necessary expertise, they should have access to the appropriate tools. These include a chat function, a link to a video call and the ability to view the customer’s application. On the other hand, tools are also needed for reporting issues within the bank.
The benefits of fully digitising customer relationships
For the customer, this means access to the service regardless of their location. Even if they are unable to visit a branch, they can still go through the entire process. They also gain full control over the application process.
For the bank, the benefits go beyond savings in time and resources. Above all, there is the opportunity to build a new customer base. This is particularly important for institutions with fewer branches across the country.
What else is worth digitising in the mortgage process?
Apart from request processing and relationship management, there are several other areas. Their digitalisation also yields tangible results.
Selecting a product for the digital channel
A key aspect is choosing the right products for the remote channel. Banks usually start with simpler options. These are typically personal loans for purchasing property on the secondary market. They often also include refinancing a loan from another bank.
Usually, the bank also sets limits on the amount and sources of income – for example, an employment contract. However, it is worth designing the solution to be easily scalable from the outset. This means that expanding the range of services does not require a system overhaul.
Personalising an online mortgage quote
Digital applications open up a wide range of possibilities for personalising the offering. Pricing terms can vary dynamically depending on customer data. The bank’s margin and discounts for additional products are adjusted automatically.
The data used includes income figures, property details and other variables. This kind of personalisation is much more difficult to achieve with paper-based data. As a result, the digital process allows the offer to be tailored more precisely to the customer’s profile.
Handling omissions and changes during the analysis
Part of the analytical process currently takes place outside the system. Contact between the analyst and the client is via email or telephone. This applies to missing documents, the provision of additional data or changes to loan parameters.
Meanwhile, this process can easily be moved to self-service channels. The bank sends a request for documents via the system. The customer uploads them via the app and receives a new form. They then accept the updated terms and conditions and the loan decision.
After-sales service for online mortgages
An ever-wider range of after-sales services is becoming the norm in online banking. Customers monitor their loan repayments and submit instructions online. These include releasing a loan tranche, making an early repayment or changing the loan term. It is also possible to apply for an amendment to the agreement.
These features are essential for a consistent digital experience. After all, customers expect a convenient service not only at the time of purchase, but throughout the entire lifecycle of their mortgage.
Summary – digitising a mortgage step by step
Digitising the mortgage process does not require an overnight revolution. On the contrary, an incremental approach yields the best results. It begins with digitising the application process. Next, remote customer service is introduced. The next step is to automate the handling of missing documentation and after-sales processes.
Each of these stages delivers independent business value. At the same time, it enhances the customer’s experience with the bank. However, it is crucial to design solutions with scalability in mind. This ensures that subsequent stages of digitalisation can be implemented without having to overhaul what is already in place.
