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‘Poor’ lender websites ‘holding back market’

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  • 03/10/2012
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‘Poor’ lender websites ‘holding back market’
UK mortgage providers are missing out on thousands of new customers because of poor online mortgage services, a report has found.

Global Reviews, a research firm which measures customer experiences conducted the study across major UK mortgage providers, and said the poor lender websites are potentially holding back the UK property market.

It said that a score of 100% means a lender is providing the ‘perfect online journey,’ one that is very easy and effective in getting people what they need, however its results found that 10 mortgage providers averaged a score of 49%.

According to the data Nationwide offers the best online customer experience with 56%, followed by HSBC and Barclays who both achieved a score of 54%. Meanwhile, Santander was seen as the poorest performer with 40%. (See chart below)

Mortgage providers performed worse than home and motor insurance companies, which averaged 58% and 51% respectively, while gas and electricity providers recorded a score of 50%.

The research found that only 12% of potential customers would recommend mortgage lender websites, whilst 57% would actively discourage others from visiting, giving the 10 lenders an overall negative web promoter score of -45%, said Global Reviews.

“The mortgage industry needs to address its online shortcomings to avoid an explosive combination of social media’s amplification powers fused with the majority of applicants willing to actively discourage others to visit,” said Rebecca Jennings, principal consultant at Global Reviews.

The report measured seven stages of a customers’ online journey, from the first encounter with the site, to researching mortgage products, completing the application form and ‘next steps’.

Although half (49%) of potential customers had problems with the application form, this is the stage where mortgage lenders scored highest at 57%. However, they fell considerably at the “next steps” stage, recording a score of 14%.

Jennings said: “Mortgage lenders are especially careless at the final stage, often failing to provide straightforward information such as how long a decision will take or how they’ll be in touch. This support is particularly vital for the biggest purchase a consumer will ever make in their lives. Its absence erodes confidence in the lender right from the official beginning of the relationship.”

Nationwide scored 67% at the crucial “evaluating products” stage, in which people find and compare relevant mortgage products, whilst Leeds Building Society scored worst with 36%.

Jennings added: “Not one lender provides the necessary positive experience throughout the entire journey. Many do badly in helping applicants find relevant products and related fees and charges; few make any attempt to convince customers why they should chose them, applications are hard and there’s a distinct lack of help and support. The good news is there’s huge room for improvement. Many lenders could dramatically increase their appeal and smooth the process through minor site amendments that improve conversion rates which, ultimately, could provide a welcome boost to the UK property market.”

global-reviews-chart

 

 

 

 

 

 

 

 

 

 

 

[Graph provided by Global Reviews]

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