Millennials are often thought of as tech-savvy and socially conscious. They’re also the largest generation group in the U.S., with an estimated population of 72.1 million in 2019. And while they may be associated with technology, millennials are just as likely to watch TV as they are to use digital platforms like smartphones and laptops.
As the largest generation group in the U.S., millennials present a unique opportunity for lenders looking to expand their customer base. However, reaching this tech-savvy demographic can be challenging due to their preference for online transactions and mobile banking. Here we explore some ways you can harness technology to connect with millennial clients:
The Benefits of Using Technology to Reach Millennials
Those in the lending industry have long been trying to find new and innovative ways to reach millennials. Technology seems to be one of the most promising avenues for lenders in recent years. By using technology, you can connect with millennials in a way that is convenient and relevant for them.
As more and more millennials enter the workforce and become homeowners, you must find ways to connect with this critical demographic. Homeownership is a significant financial milestone. By using technology to reach millennials, you can ensure that you provide the best possible service to this group.
Some of the benefits of using technology to reach millennials include:
- You can connect with them on their terms: Millennials are used to getting information and news from the internet and social media. Using technology to reach out to them, you can ensure that you meet them where they are.
- You can make the process more convenient for them: Millennials are used to doing everything online, from ordering food to buying clothes. By offering online services, you can make it easier for them to do business with you.
- You can provide a more personalized experience: Technology allows you to gather data about your customers and use it to create a more personalized experience. Understanding their needs and preferences can tailor your products and services to better meet their needs.
Using Tools and Apps to Streamline the Borrowing Process
Lending has come a long way in the past few years. Thanks to technological advances, the entire process is now more automated than ever. This speeds up the process and makes it more efficient and reliable for both you and your clients.
During the loan application process, what would’ve been paperwork can now be accomplished through an online application. This is followed by using a LOS to see if the client’s application lacks any necessary information. After this step, you can use automated underwriting to check their credit score and other data to process the application following your institution’s criteria. The results from underwriting will determine if there must be any changes the system will automatically make regarding the interest rate and the loan amount.
Once you clear the underwriting process, you can use push-to-card disbursements to fund loans quickly and directly to your client’s account. This is the most secure method as it doesn’t require paper checks that can easily be lost or stolen. Using these various tools and apps, you can streamline the borrowing process from start to finish without any delays or errors.
Loan Management Systems
Banks and lending institutions use an LMS to manage loans nowadays. The system typically includes a database for tracking loans, loan terms, and borrowers and software for processing and managing loans. It also produces various reports, such as a loan portfolio analysis.
It also automates many of the tasks associated with loans, such as calculating interest and fees, maintaining records, and producing documents. It can also help to streamline the process of applying for a loan and make it easier for borrowers to keep track of their loans.
For lenders, an LMS can help to reduce the amount of time and resources that are required to manage loans. It can also help you improve accuracy and efficiency in loan processing and provide greater transparency and visibility into the loan portfolio.
For borrowers, an LMS can provide a simpler and more efficient way to manage their loans. It can also help them stay organized and track their loan payments and terms. In addition, an LMS can offer borrowers greater transparency into the status of their loans and the associated costs.
As the largest generation in America, millennials have a lot of buying power. This means that lenders can’t afford to ignore them. Hence, many lenders have focused on tailoring their products and services to this demographic.