May 19, 2014 | Written by: Eric Ray
Categorized: Business Process Outsourcing
Three reasons why you should consider social insights & analytics for loan servicing
My world has changed. I am no longer compelled to hold the physical paper while having my morning coffee; my trusted mobile device is among the first few things that I reach out for in the morning. I am user and creator of data on social media. It is not surprising that we find many reaching out to share their thoughts, success and frustrations on social media.
In the mortgage industry, borrowers may be abandoning traditional channels of customer engagement and resorting to social media to post their issues, frustrations and questions about their lender’s services. That data is immensely valuable to deepen the understanding of those customers with whom the lenders may have very little to no contact. Also, little information about their customers may be available within the enterprise to provide the help they are seeking in a timely manner. There are three reasons why you should consider social insights & analytics for loan servicing:
1) Power of Customer Insight – Look for insights beyond agent logs or call transcripts
There is much to be explored and gained from social data analysis integrated with enterprise data mining for servicing. According to a recent survey by the Carlisle & Gallagher Consulting Group, one in three customers would use social media to complain. Social posts go beyond complaints about mods, escrow analysis, etc. to containing the customer’s own narration/voice of life events leading up to their current situation. This rich, detailed information of one’s life events is not always found in agent logs nor obtained from transcriptions of call recordings within the servicing enterprise. But this social data is free, and timely.
2) Power of Systems of Engagement – Make efforts to integrate social data and enterprise data
Making sense of this external data and integrating it with enterprise data appropriately will take us one step further in the quest to deeply understand our customers as a ‘segment of one’
However, a caution: use of informal, highly dynamic, less reliable social media in business processes can increase risk – risk of harm to consumers, compliance, legal, operational and reputational risk. Technologies are emerging to integrate social media at appropriate risk levels with enterprise data for proper validation and use. Lenders need to develop localized policies for appropriately addressing these concerns and build a robust governance model for mitigating risk, thus ensuring they are not missing out on the potential of social media analytics.
3) Power of Social – Consider the benefits of social media analytics
IBM’s point of view is unique and differs from other companies. Our focus is on responsibly using the social content to provide better services to customers. At IBM, we are developing advanced analytics to know more about customers at an individual level, for example:
- We use analytics to deepen our understanding of accounts with which the servicer had no contact for an extended period
- Uncover reasons for the lack of engagement especially if the accounts are delinquent
- Analyze characteristics of delinquent customers who take up loan modifications but have never talked to the servicer, so that we can develop actions that would help customers proactively prevent re-defaulting
- Mine customer touch points including social media data to determine what events might have turned off customers who were engaged with the servicer before.
These three practices help customer-facing operations improve service delivery at the right time to the right customers by using deep analytics to drive intelligence into the service delivery operation and to understand your customers, better.
For more information on IBM mortgage services and social media analytics, please contact Chitra Dorai, Mortgage Chief Data Scientist, firstname.lastname@example.org and visit IBM Global Process Services Financial Services page.