Fiserv’s consumer trends survey, Expectations & Experiences, shows that the majority of loans over the past two years were done online, the company said on Monday (Oct. 21) in a press release.
Almost two-thirds – 65 percent – of loan applicants since 2017 completed their applications partially or fully online, up from 56 percent in 2018. A significant portion of this growth is due to the increase of smartphone and tablet use, the survey said.
“Today’s borrower seeks a differentiated experience via any channel they choose, and they are increasingly comfortable completing loan applications through mobile devices, including their phones,” said Byron Vielehr, executive vice president and senior group president of Fiserv. “Consumers have come to expect easy mobile experiences, and providing holistic, integrated digital lending capabilities helps lenders meet borrowers’ changing preferences.”
Further, the survey showed that 19 percent of consumers read loan documents on a mobile device, up from 10 percent in 2018, and 21percent received their loan application decision via their mobile device, up from 11 percent in 2018.
Most people surveyed – 71 percent – said they were “somewhat or very comfortable” with conducting loan applications online, up from 67 percent in 2018.
The use of mobile wallets for loan payments has grown to 24 percent compared to 13 percent in 2018.
The Expectations & Experiences survey was conducted online from May 9-29, 2019, including a total of 3,050 interviews of U.S. adults ages 18 and older who met specific requirements for banking habits.
With real-time payments spreading throughout the world, pull payments are likely to play only a marginal role. Real-time payments have been a source of significant investment and regulatory attention, as financial institutions and other players strive to meet consumer demand for faster money movement.