How Artificial Intelligence Used In People Based Marketing Is A Threat To Loan Officers & Their Jobs
People Based Marketing: Does AI Represent A Threat To Loan Officers & Their Jobs?
In recent years, the economy has witnessed substantial sea changes in the way consumers tend to think about how they buy. Greater ease and transparency are now more important than ever. Up to this point, the marketplace has not exactly been swift in keeping up with consumer demands in this respect. The outcome for businesses who lag behind can sometimes be an outright failure. Over the course of the last six decades, the life expectancy of a Fortune 500 firm has dropped sharply from 75 years to a paltry 15. Reasons for this include the growing expenses of technology development, a shifting regulatory landscape and the dizzying rate of product-level disruptions. The following paragraphs attempt to articulate a few key ways in which mortgage firms may be able to sidestep major industry disruptions and evolve into the type of lender most consumers desire.
AI Interferences With Human Interfaces
As technological and product disruptions have gained steam in recent years, many observers have come to the conclusion that artificial intelligence is poised to interfere the typical amount of human interfaces between home purchasers and loan officers, perhaps eliminating the latter from a typical mortgage transaction. Research does not predict that such a chance is on the immediate horizon, however, with the lion’s share of home buyers still preferring to have at least some personal contact with a lending expert while also utilizing digital tools. Rumors of the disappearance of loan officers from the scene have persisted for quite some time, but when consumers are asked directly about the prospect, their opinion of such a development is negative. Home purchasers really do place a premium on face-to-face consultations with loan officers.
It should be noted that AI does have the potential to cut the time investment a loan officer needs to make with regard to the process of originating a loan, freeing them up to do more actual advising. It is thought that instead of making the loan officer obsolete, AI’s digitizing effect on the loan process can put loan officers at the true center of any deal. Though it may be true that loan officers’ role in mortgage lending is safe for now, their role will undoubtedly change. With the advent of AI and other technological advances, loan officers have taken on the job of counseling or advising while moving away from nuts-and-bolts origination tasks. Savvy mortgage loan officers will learn how best to use technological tools in a way that allows them to provide consumers with the hybrid experience they want.
Modern loan seekers demand to receive communications in the format they like best. Such individuals often conduct their own due diligence and then begin to make connections with lenders through their preferred channels. This process is akin to the way home shoppers utilize Zillow as a means to gain immediate information on their own terms. A business that is able to leverage this trend will find true sustainability in the industry. Because the menu of loan options for buyers these days in virtually unlimited, it is important for loan officers to remain up-to-date and competitive in terms of fulfilling buyers’ expectations.
A group of mortgage professionals engaged in a collaborative brainstorming effort to develop a new definition of the loan officer’s role. A modern loan officer is ready and willing to engage with consumers via the tools and channels the latter selects. Too many experienced loan officers are reluctant to move away from antiquated methods and fail to adopt updated strategies for consumer engagement. Making the necessary changes, including those grounded in People Based Marketing, is critical to fostering the beneficial business transactions both parties expect.
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