How Texting Benefits Lenders:
- It speeds up the lending process
- Modern borrowers are fans of texting
- It’s cheaper than physical statements and reminders
- It will help you get higher online reviews
In a world where the borrower is king, follow-up messages, reminders, and helpful tips, need to be communicated in a way that they prefer. And modern borrowers want, and expect, texting. Don’t believe me? A recent study showed that 91% of the people surveyed prefer receiving a text message over a voicemail, and 78% of the people wish they could text a toll-free number and receive a text reply.
So, why aren’t you texting your borrowers?
Only 28% of lenders regularly communicate with their future and current borrowers via text. In their defense, there are a few valid reasons for that.
- Compliance concerns
- A lack of convenient tools available for texting
- Employees (understandably) don’t want to use their cell phones
The good news is, there are simple solutions to those concerns.
An easy way to stay compliant is to create scripts and snippets that agents must stick to. That way, only approved and compliant messages can be sent. Another important step is to make sure your borrowers have opted into communicating via text and that they can unsubscribe easily.
Nowadays, there are so many great tools that can help you conveniently and compliantly text your borrowers. Solutions by Text, Textline, Zingle, Twilio, and GOLDPoint Systems all offer services that allow lenders to text their borrowers. These services will enable you to send a text from any number you choose, straight from your computer.
Now let’s talk about those benefits.
Texting makes the lending process faster:
Ninety-five percent of all lenders believe that texting speeds up or at least has the potential to speed up the loan process. A faster loan process means more loans, happier borrowers, and more money. Lending is getting faster, applications are getting shorter, and the process is getting more straightforward for the borrower. Yet, 97% of online applications are abandoned. That’s right, 97%! Lenders could easily send out a text reminder to get potential borrowers to finish their applications. And, if the borrower has any questions about the application, texting opens that communication channel. Convenient communication options are a big win for lenders.
Texting is what borrowers want:
According to the International Smartphone Mobility Report, U.S. smartphone users are sending and receiving five times as many texts as they are making and answering phone calls each day. And, Ninety-One percent of the people surveyed said they prefer receiving a text message over a voicemail. Borrowers don't want to receive phone calls or voicemail reminders. They want to text!
Texting is cheaper:
Using a service like Lob.com, a lender could send out postcards for $0.41 per postcard and $0.62 per letter. On the other hand, if a lender uses a service like Twilio.com, they could send texts for $0.0075 per outbound or inbound message. It's about 54x more expensive to send physical reminders. Studies continually show that people prefer texting, and it’s cheaper. So, why wouldn’t lenders text?
Texting helps lenders get more reviews:
From a study by Search Engine Land, 72% of consumers trust online reviews as much as personal recommendations from real people. Dimensional research stated that 90% of consumers say that positive online reviews influence their buying decisions. The more positive reviews you get, the more trust people will have in your company. This comes back to money: the more trust people have in you, the more money they'll give you.
The bottom line is lenders should incorporate texting. People want it, and businesses want it. Find the solution that works best for you and your borrowers, and dive in. You'll enjoy the results.