Strategy: Case Study 3

Assess the future of the US mortgage industry and the best retail front-end in that future state.

Client

Large U.S. Mortgage Originator

Business Challenge

This company had a major investment in a brick and mortar front–end retail operation in a time that the Internet and 1-800 services were beginning to take significant market share in new mortgage origination.

• The strategic question posed by senior management was 'what would the retail business model of the future look like, and to what extent would their current front-end need to be redesigned to be successful?'

The Solution

Work with the senior–executive team to define hypotheses about the future of the consumer mortgage industry — specifically how important the realtor referral and local–store presence would be in 5 to 10 years.

• Conduct surveys of consumers and conduct realtor focus groups.
• Analyze competitors and their business and economic models.
• Assess any potential 'game changers' that could impact the overall industry.
• Build a fact-based analysis and set of recommendations.
• Facilitate client-strategy meetings to reach agreement on the future of retail in the industry and implications for them.
  

Business Benefits

• Unified strategy for the business.
• Focus on adding additional distribution channels without disassembling the current retail model.
• Focus on improving efficiency and reducing time and cost in loan processing.
• Business continues to be a top 3 in mortgage originations through its future acquisition.

« Back to Case Studies Index