Millennials fundamentally changing the housing market - Hyarchis
Image
blog

Millennials fundamentally changing the housing market

published 2021-03-02
byHyarchis

In recent years, Millennials have made their long-awaited entry into the housing market. As the first generation to grow up in the digital age, they approach house hunting very differently from previous generations. Millennials are wealthier, less rooted, more tech-savvy and more demanding than generations that came before. Their entry into the housing market will put many established practices to the test.

Millennials are the first generation to grow up in the Internet Age, meaning there is little distinction between the off- and online for them. For Millennials, these worlds are naturally woven into every facet of their lives. They maintain friendships via Facebook, find jobs via LinkedIn, share travel experiences on Instagram and find love via Tinder. With their entry into the housing market, Millennials project their app-driven reality onto the mortgage process, a development that Hyarchis outlines by means of the five trends identified in their new ‘Defining Mortgage Tech’ report.

Customer experience in the digital age

The report reveals that many financial services firms still use cumbersome lending processes that rely on outdated technology with little regard for the customer experience. The gap between the actual and desired customer experience of Millennials is a major driver for the rapid growth of neo-banks such as Revolut, Bunq and N26. Adriaan Hoogduijn, COO of Hyarchis, on the topic: “If you look critically at these online providers, their product range is by no means innovative. The only thing that really sets them apart is the fact that their products are strictly offered online. The popularity of neo-banks is therefore not due to their product offering, but mainly to their successful facilitation of the customer journey of the digital age”.

Competition for the customer of tomorrow

“While neo-banks were still a rarity five years ago, they are now among the strongest financial brands in the world. In the market, neo-banks are still seen as challengers, but for the current generation, the online customer experience is simply the norm. They have grown accustomed to arranging their lives online. They already do this with their bank account, insurance policy, loan- and share portfolio – soon, they’ll want to do the same with their mortgage,” says Adriaan Hoogduijn.

It will take a few more years before these new homebuying habits crystallize. However, the Defining Mortgage Tech” report shows that, in the battle for the customer of tomorrow, technological developments will follow each other at a rapid pace and with varying success. The winner in this battle is not the one who bets on the right initiative, but the one who can most easily adapt to evolving customer needs. With strong competition coming from the FinTech domain, traditional players will have to arm themselves early to maintain their market share. The report provides some tools for this in the form of the most important tech trends in the mortgage market.

Written by
Image
Hyarchis
One Step Ahead

More interesting posts

Image

Mortgages are characterized by their complexity. While consumers start the search for their dream home, mortgage lenders are more interested in fixed-interest instalments, annuity, and interest...

Read more
Image

The challenging housing market is leading to an unprecedented growth in buy-to-let investors. The price pressure resulting from the limited housing supply leads to quickly acquired capital...

Read more
Image

The coming years will be intriguing for the Dutch mortgage market. The first generation to grow up in the internet age is entering the housing market and they will quickly notice the analogous...

Read more

Stay in the know with our newsletter

Request a demo

Please enter your first name
Please enter your last name
Wrong E-mail address
Please enter company name
What are you interested in?
Please select atleast one interest
Regtech & Compliance
Operational Efficiency
Document Management
Please enter the message
In order to send message you have to accept our terms and conditions

By submitting this form, you confirm that you agree to the processing of your personal data by Hyarchis as described in the privacy policy.

Please verify that you are a human
Submit