Senso, AI, and Creating a Proactive Home Buying Experience

I’m in the market for my next home, and while it’s exciting to browse homes on Zillow, I worry that the homes I am looking at are out of my budget.

After completing a few online mortgage calculators offered by big banks, I realized that I haven’t gotten any closer to understanding what type of home I can afford. My realtor referred me to a mortgage company to pre-qualify me, but it wasn’t my PFI and I couldn’t get a clear picture of my budget until I’d completed a bunch of paperwork.

Why wasn’t my credit union proactive? They have all my data, but they never reached out to tell me what they could approve me for. While they’re waiting for me to come to them, they’re losing money to the originator!

Let’s talk about transforming the homebuying experience from reactive to proactive.

 

The Data Is There, But…

The unique thing about my perspective as a homebuyer is that I’ve seen the backend of the industry in action. Having worked with credit unions and mortgage servicers, I know the data is there.

Not only should my credit union be able to tell when, where and how likely I am to buy my next home… but with the technology available today, they should be able to tell what kind of features and amenities I am looking for.

Once they have this information, all they need to do is proactively reach out to me at the right time with the right offer. That will save me lots of time in searching for someone to pre-qualify me and filling out paperwork. It would also give me confidence in my credit union and their ability to use the data I provided them with to my benefit.

They have all the information they need to be proactive and reach out to me. They also have insights to guide me through my home purchase.

But do they have the ability to do it? It appears that they don’t. But there are ways…

Read on to learn more!

 

High Acquisition Costs, Low Retention

There’s very little loyalty in the mortgage business. Often, people change lenders between each new home they buy. And on average, people buy new homes once every ~6 years!

It’s not because the last lender didn’t work out, either. Rather, realtors typically refer people to their preferred lenders to get qualified and approved. Statistically, for 80% of borrowers, the referred lender is different from their PFI!

The issue is that lenders are reactive, not proactive. What does that mean?

It means that most lenders respond only to reactive triggers, such as mortgage applications or preapprovals. However, if lenders reach out during that stage, the borrower has likely already gone through many vital steps in their homebuying journey. They may have already found their lender of choice.

Being proactive means knowing which members are in the early stages of their homebuying journey. It also means nurturing them through it–and making personalized offers at the right time.

 

Connecting Data, Buyers, and Lenders

I started dreaming of buying a home almost a year ago. Finding lenders, agents, houses, and more has been a learning experience… and a hassle.

Had I had access to a tool that calculated my affordability and provided proactive recommendations, I’d use it. If my credit union provided it, I wouldn’t be rate shopping with other lenders.

Basically, I’m saying that I wish I learned about Senso sooner. Also, I’m saying that your credit union should take a closer look at what they’re doing—and what they could do for your members.

Here’s the gist:

Imagine if you could see which homes people are shopping for… and then send them targeted offers based on their interests, budget, and likelihood to buy. Mortgage teams could use the insights to reach out to the right borrower segments, at the right times.

Senso brings the “Netflix effect” to the mortgage industry enabling banks to curate personalized content based on consumer preferences. By continuously interacting with Senso technology, borrowers build their dream property and area profiles over time, allowing them to receive highly personalized offers from the lender.

Powered by AI, Senso enables mortgage lenders to create better borrower experiences, based on their extensive knowledge of financial services and digital marketing. They help credit unions, banks, mortgage originators, and servicers increase income and LTV by proactively engaging borrowers leading up to their next home purchase or refinance.

Using Senso, these lenders can successfully identify qualified leads in-market up to six months in advance. They can then engage them digitally before their next refinance or home purchase.

The result?

Credit unions get improved application conversion rates, higher close rates, faster portfolio growth, and lower acquisition costs.

 

Additional Resources

Our Fintech Friday series highlights new and upcoming fintechs that we like. We love what Senso is doing in the world of home finance management, so we wanted to feature them here.

Join our Fintech Call Program to hear more about exciting new fintechs and technologies.