The world is changing rapidly, and the mortgage industry is no exception. Today, customers expect convenience, speed, and mobile-first solutions. This is where Text to Pay for mortgage servicers enters the scene, offering a practical solution for servicers to engage modern borrowers. Its benefits go far beyond simply sending payment links.
Text to Pay for mortgage servicers acknowledges how people prefer to communicate and interact in the digital age. With smartphone use now surpassing desktop browsing, ignoring the potential of SMS is a missed opportunity for businesses. In fact, experts suggest mobile web traffic will account for almost three-quarters of all internet access by 2025.
But how does embracing a mobile-first approach benefit mortgage companies specifically? Let’s explore this in detail below.
How Lenders Benefit From Text to Pay for Mortgage Servicers
Text to Pay platforms integrate smoothly into your existing loan servicing software. They offer a secure communication channel with your borrowers.
Reduced Delinquent Payment Rates
Mortgage companies can greatly benefit from payment methods that are easy to use and preferred by borrowers. Although email remains a viable option, its open rates pale in comparison to text messaging. SMS boasts a staggering 98% open rate, significantly higher than the 15-20% of traditional email marketing campaigns.
This is likely because the average person prefers getting text messages. Did you know that people send around 94 texts per day. This high engagement is a key factor in why consumers find paying via text message much easier.
Mortgage servicers can take advantage of this reality to simplify the payment process, improving the chances of borrowers making their mortgage payment on time.
Servicing Mobile-First Customers
Consumers spend an average of 23 hours a week engaging with SMS. Text messaging already plays a huge role in our everyday communication. Why not use it for payments too? With almost everyone having a mobile device, Text to Pay features are a natural progression. This fits into borrowers’ existing habits.
Imagine this: your borrowers can manage and pay their mortgage from the same device they use for everything else. You will be able to reduce delinquent payment rates, and reduce delinquent payments with this simple change. By making the entire process intuitive and convenient, you increase the likelihood of them paying on time. This translates to lower delinquency rates and fewer headaches for you. It’s a win-win.
Improved Communication and Borrower Satisfaction
Adopting Text to Pay services opens a two-way communication channel where you can reach your borrowers. You can reach them where they are most comfortable. With text message reminders and alerts, your borrowers are more likely to see, and act upon, important information.
Better Interim Servicing Experience
Interim servicing can be hard for borrowers and mortgage servicers. When loans are moved from one servicer to another or from the lender to the servicer, this can be stressful. Borrowers need to make sure their payments go to the right place and many expect the ease of autopay from day 1.
But there’s a way to make this easier: Text to Pay.
Here’s how it helps borrowers:
- They get friendly payment reminders by text message.
- They can make a payment right from their phone.
- They don’t have to log into different websites.
- Lenders and automatically transition the Text to Pay to the servicer.
This way Text to Pay makes things easier during a time of transition.
Making A Convincing Case for Text to Pay
Many reasons exist for integrating Text to Pay solutions. As you’ve read so far, a compelling case exists for appealing to a consumer base that increasingly prefers interacting with their mobile devices. This section will offer even more reasons that you can bring to your next meeting to pitch incorporating this service into your business.
Increased Payment Rates
Text to Pay makes the payment process remarkably simple. Imagine getting a text message with a payment link. All you do is click it, review the details, and pay within seconds. You can do it all without leaving the app. Text to Pay for mortgage servicers removes the hassle of logging into online portals and reduces friction.
This increased ease-of-use translates into higher payment rates and fewer missed payments. One-click-to-pay text messages will encourage on-time payments.
Reduced Operational Costs
Manual tasks and paper-based processes often mean high operational costs for mortgage servicers. Switching to Text to Pay features provides cost-effective automation. It can streamline workflows and eliminate inefficiencies. Using Text to Pay can also free your staff’s valuable time. This allows them to focus on complex customer needs or projects that will generate new business.
Enhanced Borrower Experience
Today’s consumers favor speed and efficiency when managing their financial affairs. Nobody wants to waste their precious free time making phone calls. No one wants to struggle with cumbersome online interfaces either. Offering text-based solutions acknowledges the current landscape. It tailors your offerings to this reality, leaving a good impression on customers.
Seamless Interim Servicing
Servicing transfers can be stressful and confusing for borrowers. Offering Text to Pay as an immediate payment solution bridges this gap. It provides familiarity and ease-of-use, giving customers peace of mind during the transfer period.
FAQs about Text to Pay for Mortgage Servicers
Is Text to Pay safe?
Yes, Text to Pay is as secure as making payments through any digital channel. It utilizes features such as encryption and tokenization. Plus, reputable service providers comply with security protocols. This further ensures the safety of your information.
How do I text a client for payment?
After setting up a service through a Text to Pay provider you can create and send personalized messages. Typically this process involves selecting an existing payment reminder template. You can also craft a new message.
You will likely need to confirm the borrower’s details to attach to the link. After that, you send the message using the platform’s system. It is a streamlined and automated process.
How to pay by text message?
Once you receive a text message from a participating service provider, you click the provided payment link. You’ll see the amount due and be asked to confirm the payment method, if more than one is offered. Upon successful payment you usually get a confirmation via text, email or both.
Conclusion
The future of the mortgage industry hinges on adaptable technology and customer satisfaction. As more of our financial world is handled on mobile devices, meeting the evolving needs of today’s borrower will prove crucial for mortgage lenders. Text to Pay for mortgage servicers ticks both of these boxes. Implementing these services gives you a significant competitive edge. It sets you up for sustainable growth well into the future.
