One of America’s largest mortgage servicers has been facing a significant challenge. The company, which was established in the early 1990s and operates across all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, offers a variety of mortgage solutions, including conventional loans, refinancing, and first-time homebuyer programs such as FHA loans.
Despite a tough lending environment in 2023, it had a successful fiscal year, aiding nearly 80,000 borrowers in financing their homes and raising over $1bn to support its expansion goals.
However, convincing customers to switch from traditional mailed statements to paperless ones proved difficult. Despite the cost benefits, with each mailed statement costing the firm $14—accounting for ink, printing, envelope stuffing, and postage—the response from customers was underwhelming. Most of the company’s efforts, through email campaigns urging customers to visit their online portal or contact centers, ended up being ignored.
In response, the firm partnered with Ushur, a leader in customer communication technology, to overhaul its approach. Ushur suggested a proactive strategy using mobile communications, tapping into the widespread use of mobile devices among the customer base. This enabled the mortgage servicer to send personalized, instant SMS messages that highlighted the benefits of going paperless, including significant cost savings and positive environmental impacts.
The switch to an SMS-based campaign saw a dramatic improvement in engagement. The Ushur initiative led to a 150% increase in conversion rates in just the first month. Customers appreciated the ease and personalization of the SMS messages, which directly linked them to a sign-up page for paperless statements. Moreover, the process included an email verification step to ensure data accuracy, further enhancing communication efficiency.
The success of the paperless campaign is one of many successful automation projects implemented by Ushur at the mortgage servicer. By automating various customer engagement processes, the company was able to handle inquiries more effectively, boosting response rates and operational efficiency. This proactive, multichannel engagement strategy not only saved costs but also improved customer relations, setting a standard for future communications in the financial services industry.
Read the story here.
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global
