While most borrowers obtain their mortgage from a bank or other financial institution, a new survey showed consumers would be open to getting a loan from alternative locations.
According to Carlisle & Gallagher Consulting Group, 80 percent of consumers would be open to obtaining a mortgage from a non-bank. A third said they would consider getting a mortgage from Walmart, while nearly 50 percent said they would get a loan from PayPal.
The reason for this is frustrations with banks over slow execution, communication problems and untrustworthy advice, among other things.
"Consumer attitude is driven by three things, price, service and trust," said Doug Hautop, senior manager and lending practice lead for CG. "Institutions looking to gain market share must target customer values instead of traditional asset segmentation."
The trend toward alternative lending locations may come as a surprise to some, but Costco Wholesale Group has been offering home loans online since late 2011, according to Reuters.
Jay Smith, Costco's director of financial services, told the news source that the service has been successful because they have tried to give their customers "significant value on rates and fees."