Beating the Fintech Mortgage Influencers: How FIs Can Prevail
- Date:March 21, 2024
- Report Details: 23 pages, 12 graphics
- Research Topic(s):
- Digital Lending
- PAID CONTENT
Overview
For most consumers, buying a home is a complex process that leads to the biggest financial commitment they will make in their lives. To navigate the journey, shoppers commonly seek guidance from non-bank influencers such as real estate agents, home search engines, lending marketplaces, and digital lenders. These non-banks have the potential to disintermediate banks and credit unions because they influence not only the homebuying journey but also where consumers shop and apply for mortgages.
Javelin Strategy & Research’s analysis of eight mortgage fintechs—such as Beeline, Loan Depot, Nerd Wallet, Rocket Mortgage, and Zillow—underscores a crucial lesson for digital banking strategists: Fintechs recognize that consumers are shopping for homes, not just mortgages. Throughout the six-stage homebuying process, they deftly engage with homebuyers during a process that can take months or even years before it culminates in applying for a mortgage.
Nonetheless, banks and credit unions can win by capitalizing on four defensible strengths that can serve as the foundation for highly engaging help-me-do-it and do-it-for-me homebuying experiences in authenticated digital banking.
Key questions discussed in this report:
- What are the key stages of the home shopping process at which fintechs and FIs can engage before homebuyers seek a mortgage?
- Which fintech influencers stand out in the homebuying process?
- What can banks and credit unions learn from leading mortgage fintechs?
- What are examples of advanced do-it-for-me digital experiences from mortgage fintechs?
Companies Mentioned:
Alkami, Ally Bank, Beeline, Better, Chase, Chimney, ComeHome/HouseCanary, Credit Karma, Direct FCU, Fourth Capital Bank, Lending Tree, LoanDepot, NerdWallet, Q2, Rocket Mortgage, Wells Fargo, Zillow
Learn More About This Report & Javelin
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