DEC 3, 2012

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Competing Against Walmart and PayPal

DEC 3, 2012 4:55pm ET
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Fannie Mae is the latest entity which came out with a survey saying most mortgage customers don’t shop enough for the best deal. Well, in what could be described as distressing follow-up news, one in three consumers said they would be open to getting a mortgage at a place they do their food and clothes shopping at, Walmart. (Author’s note: My wife and I own stock in Walmart.)

And almost half of the respondents to a Carlisle & Gallagher Consulting Group survey said they would consider a mortgage from PayPal. The survey also found 80% would consider getting a mortgage from “a non-bank.”

Among the problems the survey found with consumers and the loan origination process−56% said slow execution is one of the most painful aspects of getting a loan; 32% said their originator was difficult to communicate with; 31% were unhappy they were unable to track the status of their application; and 26% said they received untrustworthy advice.

“Consumer attitude is driven by three things: price, service and trust. Institutions looking to gain market share must target customer values instead of traditional asset segmentation,” said Doug Hautop, senior manager and lending practice lead for Carlisle & Gallagher.

Comments (7)
If customer service is the deciding factor then we brokers have nothing to fear. The phrase "customer service" is not in the corporate vocabulary of either Walmart or PayPal, as anyone who has ever needed any from either entity will tell you...
Posted by Chris | Tuesday, December 04 2012 at 1:16PM ET
Have you ever stood in line at the "customer service" desk at Wal-Mart? That is the very definition of "slow-execution"
Posted by Derek | Tuesday, December 04 2012 at 1:21PM ET
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