Thursday, June 9, 2011

Issues in Online distribution channel for home loans Part.III

A benchmark conducted by a team with 40 European banks shows a great diversity of practices in terms of distribution of mortgage lending by the web channel. Found mostly sites of contact and very few institutions offering the user advanced tools for construction financing plan with pre-approval online. France and US stands out however as the countries with an average of more advanced practices, with two banks offering their customers or prospective users the opportunity to mount their application for funding from home, but with photocopies of supporting documents, so submission e mandatory. So even if the actors historically oriented web services offer the most successful online, no one can apply for funding complete 100% electronically. The flexibility to expand its online offering is important and is still a good differentiators.

Developments in the web channel for home loans suggests, we ultimately opportunities for reconfiguration of the industry and a place for new players. Why not imagine a model of market-place, full service construction financing plan and dematerialization, allowing the user to file a single folder (90% of the data and documents necessary for the formation of a funding application is identical from one institution to another)? This market-place could be facilitated by an intermediary, broker or bank. For a subscription system, banks are accessing the virtual platform and choose the files according to their risk profile to ultimately send their best offer on the reverse auction model. Thinking with enough foresight will offer interesting prospects for banks, especially on aspects of pooling resources or site management for third parties.

Clearly, the outsourcing of customer relationship for housing loans, for what it has advantages for the bank and its customer focus the attention of sales management in the periods ahead, encouraged by the advent of canals Low cost. With this major issue related and related to the sale of real estate loans: Do not lose the client relationship, the product of conquest remains a unique tool for banking services in the retail catalog.


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