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|Lenders buck the trend on social media use, finds IRESS|
|Wednesday, 12 October 2016|
In contrast to other areas of financial services, lenders’ use of social media has fallen in the last two years, according to the latest edition of the Mortgage Efficiency Survey conducted by IRESS, the leading supplier of technology for wealth management, financial markets and the mortgage industry.
The survey provides insight across many aspects of the mortgage market and application processing. Now in its fifth year, the 2016 survey analysed the responses of 18 lenders, with a combined share of gross mortgage lending of 68% in 2015, equating to £152bn of loans. Of the lenders surveyed, 52% are currently either active on or considering using Twitter, compared to 90% in 2014. Similarly, 55% are active on or considering using Facebook, compared to 80% two years ago. LinkedIn follows the same pattern, with 36% considering or active, compared to 50% in 2014.
Henry Woodcock, Principal Mortgage Consultant, IRESS, commented: “At a time when social media usage is booming, it is surprising that many lenders are actually stepping back from Twitter, Facebook and LinkedIn as tools for engaging with intermediaries and customers. In other areas of financial services, for instance banking, social media is transforming customer relationships with the likes of American Express using social media to personalise its message and tailor its service to individual customers. Developments are also moving beyond customer service and marketing to new services such as Turkey’s Denizbank Facebook banking; reducing operational costs and creating new business models
“While we do not envisage customers applying for mortgages via social media in the near future, tools such as Twitter and Facebook can provide useful additional channels for customer service and information pre and post completion, particularly in reaching the under 45 age group. With several digital lenders set to launch in the coming months, we believe lenders across the market will need to better understand social media and develop plans on how to use it effectively.”
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