There’s a lot of talk about reaching new borrowers. The industry is very aware of the fact that we are in a purchase market where interest rates are probably going to go up. So, what should a lender do? First, they have to reach new audiences. What does that mean? It means that mortgage lenders have to speak to young people in a meaningful way. Everybody knows this, but they don’t seem to know how to do this. I don’t get that. I don’t understand why the mortgage industry seems unable to change tactics.
Sadly though, the problem of being unable or unwilling to change is not a new one for the mortgage industry. For example, I was one of those people that hailed the coming of TRID. I thought this new regulation would prompt mortgage lenders to look hard at the whole mortgage process and change it for the better. Needless to say, that didn’t happen. TRID was viewed as a hassle and an inconvenience. The result of this attitude was that too many lenders viewed this as merely an issue of new forms, and not a way to really rethink and improve their own processes.
But I digress. If lenders truly want to know more about Millennials and how to market to them, they need to look at the research. Here’s a look at vital stats about this demographic—and info about how best to reach it.
Some 82% of Millennials (people age 18-29) interact with brands or retailers on social media, where 49% follow their favorite brands or retailers, according to the following USC Dornsife infographic.
To reach Millennials, marketers should consider optimizing mobile. “Mobile is the best way to reach Millennials,” states the infographic. “They have the highest rate of ownership of smartphones of all generations.” And I can tell you, this trend is not going away. My sons have smartphones that they use in ways that I never dreamed possible. To me it’s a phone, but not to them.
When I was their age I didn’t have a smartphone. There weren’t any smartphones. It was truly a different time. But that’s the point. It is a different time that requires lenders to do things a little differently.
Personalization also matters to this age group: “85% of Millennials are more likely to make a purchase if it is personalized to their interests, both in store and with digital displays,” according to the new research that I came across. It would be beneficial if mortgage lenders would view this new generation as a business opportunity. Here are some ways that they might reach them:
About The Author
Tony Garritano is chairman and founder at PROGRESS in Lending Association. As a speaker Tony has worked hard to inform executives about how technology should be a tool used to further business objectives. For over 10 years he has worked as a journalist, researcher and speaker in the mortgage technology space. Starting this association was the next step for someone like Tony, who has dedicated his career to providing mortgage executives with the information needed to make informed technology decisions. He can be reached via e-mail at firstname.lastname@example.org.