BeSmartee’s Tim Nguyen-Beyond the Mirage: Transforming Your Mortgage Business with a Modern Trifecta Approach
Tim Nguyen is the CEO & Co-Founder at BeSmartee, a fintech powering the digital transformation of mortgage and commercial lenders. As CEO Tim sets the direction of the company, defines its product vision, defines its culture, leads mergers & acquisition initiatives and stays close to the company’s most strategic clients and partners.
Tim comes from an entrepreneurial family background, having taught himself to code and launch multiple online businesses in high school, advising local companies ranging from $5-$100M in annual revenues and as an active investor in numerous startups.
In his personal life Tim enjoys family, writing, music, farming, no-limit poker, baseball, MMA and basketball.
Soon, many of us will be singing Elvis Presley’s “Viva Las Vegas” as we fly into Las Vegas for the ICE Experience at the beautiful Wynn Hotel. Ironically, I’ve been thinking about Steve Wynn a lot because of one of my favorite business interviews with the man from the Hoover Institute. So, let’s start with Steve’s strategic insight that led to the construction of the Mirage.
In 1989 the Mirage cost a whopping $630M, a paltry number by today’s standards, but back then Las Vegas was a $200M city. So, what led Steve to invest more than three times the largest Las Vegas development at the time? Steve’s research led him to believe that a trifecta was something consumers would flock to. In this particular case, he looked at the Hilton which was known for food, beverage and conventions. Then he looked at the MGM, which was known for tours, travel and shopping. Lastly, he looked at Caesars which was all about the casino and gaming. To quote his words, “If you combined the three, there was clearly a business plan that would produce a return on $600M.”
So, I ask you, what is your mortgage company’s trifecta? What combination of value-add can you bring together to transform your borrowers’ relationship with your business?
#1: Borrower Experience
To quote McKinsey & Company, “… consumer experience refers to everything an organization does to deliver superior experiences, value, and growth for customers. And it’s crucial in an age when how a business delivers for its customers is just as important as – if not more important than – the products and services it provides.”
In looking at your mortgage business, yes service matters. Yes, product mix matters. Yes, competitive rates matter. Reread what McKinsey & Company says and you may be thinking that service and experience are the same thing; but they are not.
Service: The Functional Aspect
Service in our mortgage industry refers to specific actions or processes that your company performs for your borrowers. This includes the tangible aspects of the borrower interaction, such as:
Speed of processing loan applications: How quickly you can process a loan application from submission to approval.
Accuracy and reliability of information provided: Ensuring that your borrowers receive correct and timely information regarding their loan options, rates, terms, and conditions.
Accessibility and responsiveness of customer support: How easily your borrowers can get in touch with your company and receive prompt, helpful responses to inquiries or issues.
Service quality is measured by the efficiency, reliability, and courtesy with which your services are provided. It’s transactional and focuses on the functional aspects of what your company does for your borrowers.
Experience: The Emotional Aspect
Experience, or consumer experience (CX), encompasses the broader journey your borrower has with your company, including how your borrower feels throughout the process. It’s the cumulative impact of all interactions your borrower has with your company, from the initial research phase to post-closing. In our mortgage industry, this could involve:
Emotional connection: How your company makes borrowers feel valued, understood, and cared for throughout the mortgage process.
Personalization: Tailoring the process to individual borrower needs, preferences, and financial situations, making the journey feel unique to each of your borrowers.
Ease and convenience: Simplifying your mortgage process through user-friendly platforms, clear guidance, and support, reducing stress and confusion for your borrower.
Trust and transparency: Building confidence through open communication, transparency about costs, requirements and process.
Consumer experience is about the emotional journey and the overall perception of your company formed by these interactions. It’s about making borrowers feel good about their choice of lender, not just because of the product or service (the mortgage) but because of how the process made them feel.
Service vs Experience In The Mortgage Industry
While service is about the “what” (the specific services offered), experience is about the “how” (the way services are delivered) and the “why” (the emotional response they elicit). Your mortgage company might offer excellent service in terms of speed and reliability but still fall short on the experience if the process feels impersonal, stressful, or confusing.
Given McKinsey’s emphasis on borrower experience, you should strive to excel in both service and experience, recognizing that in today’s competitive market, how you deliver for your borrowers can indeed be more important than the products and services themselves.
#2: Automation
Automation refers to the use of technology to perform processes or tasks with minimal human intervention. Automation significantly enhances both the efficiency and the quality of services provided by your mortgage company. Here’s how automation impacts various aspects of the mortgage process:
Accuracy and Compliance
Automated systems reduce the likelihood of human error in data entry and processing. They can be programmed to follow strict guidelines and regulations, ensuring that all procedures are compliant with industry standards and legal requirements. Automation helps in maintaining accurate records, calculating rates, and ensuring that all financial assessments are made accurately, which is crucial in our highly regulated mortgage industry.
Cost Reduction
By streamlining processes and reducing the need for manual intervention, automation can significantly lower operational costs for your mortgage company. These savings can then be passed on to your borrowers, or simply be reinvested into different areas of your business, such as your new borrower experience function.
Enhanced Borrower Experience
Automation contributes to a better borrower experience in several ways:
Convenience: Automated applications and processes are available 24/7, allowing borrowers to apply for mortgages or get information at their convenience without being restricted to business hours.
Personalization: Advanced analytics and AI can tailor your mortgage experience to individual borrower needs, offering personalized product recommendations and advice based on their financial situation and preferences.
Transparency: Automated tracking systems can provide your borrowers with real-time updates on their application status, loan approval, and next steps, keeping them informed and engaged throughout the process.
Challenges and Considerations
While automation offers numerous benefits, it’s important for your mortgage company to balance technology with human touch. Complex cases, or borrowers or referral partners who prefer personal interaction may require direct engagement with your staff. Carefully and strategically choose those processes that can benefit from automation and those that are better left for professionals to handle personally.
For example, most traditional retail originators prefer to speak to their borrowers about price and never leave it to automation. Or for example, it’s a good idea to use automation for updates, but never if the update is negative or very positive. In these cases a personal interaction by a professional is better suited for the task at hand. Ultimately, it’s your decision where to apply automation and where not to apply automation.
#3: Native Mobile App
The introduction of a native mobile app designed specifically for real estate agents to streamline referrals to your originators represents a significant value-add in our real estate and mortgage banking industries. Such an app leverages the convenience and power of mobile technology to enhance the efficiency, communication, and overall experience of the referral process. Here’s how a native mobile app impacts various facets of the referral process:
Enhanced Efficiency and Communication
Instant referrals: Real estate agents can quickly refer their clients to your originators directly from their mobile devices, significantly reducing the time it takes to initiate the loan process.
Real-time updates: Agents and originators can receive real-time notifications on the status of loan applications, approvals, and any required actions, enabling faster response times and keeping all parties informed throughout the loan process.
Document sharing and management: The app can provide secure document upload and sharing capabilities, making it easier for agents and loan officers to exchange necessary documents, and even empower the real estate agent to create (or modify) pre-qualification letters without the need for originators to intervene manually.
Enhanced Borrower Experience
Streamlined process for borrowers and referral partners: By making referrals and initial loan processes smoother, the app indirectly improves the experience for the end borrowers, contributing to their satisfaction with both the real estate and mortgage services.
Personalization: The app can offer personalized experiences based on the real estate agent’s preferences and history, including preferred loan officers, types of loans frequently dealt with, and customized notifications.
Market Differentiation and Value Addition
Branding opportunity: For your mortgage company, offering a native app for real estate agent referrals can differentiate your brand in a crowded market, showcasing your commitment to innovation and customer service, including “digital business cards”, i.e. an installed native app, vs traditional communication methods such as text and email that may get lost.
Value to real estate agents: By simplifying the referral process, the app adds significant value for your referral partners, making your mortgage company and originator more attractive for future referrals.
Conclusion
Your mortgage company’s trifecta is yours to define. In my humble opinion, your trifecta should focus on delivering an unparalleled borrower experience, leveraging automation for efficiency and accuracy, and implementing a native mobile app to streamline real estate agent referrals. It’s about more than just the services you provide; it’s about how you make your borrowers feel, offering them convenience, personalization, and transparency every step of the way.
Have fun at the ICE Experience conference coming March 18th. I hope to see you there.
(Views expressed in this article do not necessarily reflect policies of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes your submissions. Inquiries can be sent to Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)
