Satisfied Customers Less Likely to Considered Refinancing Their Mortgage
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Tokyo Star Bank and Sony Bank Rank Highest in Customer Satisfaction with Mortgage Servicers
TOKYO: 25 February 2014 — Customers with higher satisfaction with their mortgage servicer are less likely to consider refinancing their mortgage, and are more likely to use their mortgage bank as their primary bank and increase their use of its services, according to the J.D. Power Asia Pacific 2014 Japan Mortgage Satisfaction Study (Servicer)SM released today.
The inaugural study measures customer satisfaction with the mortgage servicing experience. Overall customer satisfaction with mortgage servicers is based on three factors (in order of importance): billing and payment process; contact; and facility.
When satisfaction increases, not only does the percentage of customers who consider refinancing decrease, customers also tend to use time deposits, investment trusts, credit card loans, and other non-mortgage services,” said Ryutaro Nakao, manager at J.D. Power Asia Pacific, Tokyo. “In the current period of low interest rates, financial institutions face a critical challenge of preventing customer defection through refinancing.”
The study finds that overall 34 percent of customers have considered refinancing their mortgage during the past year. Among customers who have had their mortgages for six years or longer, 40 percent have considered refinancing. Overall satisfaction scores for full-service and self-directed banks are based on a 1,000-point scale.
- When satisfaction increases, not only does the percentage of customers who definitely would use the lender as long as possible in the future, customers also tend to recommend the lender's services to others in fact.
- More than one-half (52%) of all mortgage customers received information from their lender about products, services, and campaigns after obtaining their mortgages. The percentage decreases as the number of years after origination of the mortgage increases.
- Overall mortgage servicer satisfaction with self-directed banks averages 674 while satisfaction with full-service banks averages 550.
- While satisfaction with nearly all full-service banks and self-directed banks decreases after customers obtain their mortgages, satisfaction with Sony Bank, SBI Sumishin Net Bank, and Shinsei Bank increases after origination.
Mortgage lenders are classified into one of two segments: full-service banks and self-directed banks.
Full-Service Bank Segment
Tokyo Star Bank ranks highest in the Full-Service Bank Segment with a score of 606. Tokyo Star Bank performs particularly well in the billing and payment process factor. Ogaki Kyoritsu Bank ranks second (597) and performs particularly well in the facility factor, while Bank of Tokyo-Mitsubishi UFJ ranks third (573) and performs particularly well in the contact factor.
Self-Directed Bank Segment
Sony Bank ranks highest in the Self-Directed Bank Segment with a score of 724. Sony Bank performs particularly well in the billing and payment process, and contact factors. SBI Sumishin Net Bank ranks second (700).
The J.D. Power Asia Pacific 2014 Japan Mortgage Satisfaction Study (Servicer) is based on responses from 10,189 men and women age 20 and older who have had their mortgages for at least one year. The Internet study was fielded in December 2013.
About J.D. Power Asia Pacific
J.D. Power Asia Pacific has offices in Tokyo, Singapore, Beijing, Shanghai and Bangkok that conduct customer satisfaction research and provide consulting services in the automotive, information technology and finance industries. Together, the five offices bring the language of customer satisfaction to consumers and businesses in China, India, Indonesia, Japan, Malaysia, Philippines, Taiwan and Thailand. Information regarding J.D. Power Asia Pacific and its products can be accessed through the Internet at japan.jdpower.com.