A frictionless mobile mortgage experience doesn’t require an app

In the race to create a convenient, modern borrowing experience, many lenders have seized on native mobile apps as the next big thing in mortgage origination. At first glance, the appeal is obvious: an app can live right on a borrower’s phone, promise to save their progress, and provide a sleek, branded interface. Yet, in practice, lenders tell us that only about 20 percent of borrowers take that route when given the choice. The other 80 percent head straight for the mobile-friendly website instead. Outside of mortgage, an estimated 99.5% of consumer apps and 87% of business apps fail.

These trends tell us something important: consumers may crave a frictionless experience on their phones, but they often don’t see a compelling reason to download an app—especially for a process they only go through every few years.

Part of the disconnect is sheer practicality. By the time a borrower is ready to apply for a mortgage, they’ve already gathered personal documentation, checked their credit, and possibly begun shopping for homes. Asking them to sift through app store listings, question whether they’ve found the official app or a sponsored link, and grant permissions can feel like just one more hassle in an already complex undertaking.

There’s also the fact that a mortgage-specific app usually doesn’t serve a function borrowers need on a daily or weekly basis. When there isn’t a sustained or multi-purpose use case, it’s hard to justify the download. The unique value of a native app isn’t always clear, and usage rates can fall far below expectations.  A well-designed, mobile-first web portal can deliver virtually the same advantages: borrowers can save progress, switch devices anytime, and stay in a contained, secure environment, all without jumping through extra hoops.

Enhancements and patches are applied automatically in the background, so borrowers never have to wait for the “latest version” to download or agree to new permissions.

That convenience also matters from an enterprise perspective. Apps require developers with specialized skill sets, not to mention ongoing maintenance, security patches, and updates that have to go through review processes for each device type.

The initial investment can reach a million dollars, and there’s ongoing overhead. Because a mobile app’s code base is separate from a website’s, lenders could find themselves building and updating the same features twice. Every customization a lender might need—whether it’s new disclosures, branding tweaks, or additional integrations—means more development and new rounds of app store submissions.

This workflow drives up both the time and the cost. The “shiny object” factor of having a dedicated mortgage app can blind lenders to the real price tag: they end up footing the bill for repeated development sprints and user support, all for a tool that a large majority of borrowers won’t even bother installing.

None of this is to say that apps are universally bad. Some financial institutions offer a single app that brings multiple services under one roof—from checking accounts to car loans to investment portfolios—and that can be a compelling way to maintain brand loyalty. If a borrower is managing their finances daily through that same app, then tapping on a mortgage tab feels natural. But for a standalone mortgage application experience, the cost-benefit analysis often tips the other way. There’s no real need for a distinct, short-lived mortgage app that gets used a handful of times and then languishes on a borrower’s phone until it’s uninstalled.

With the right technology partner, a web-based solution can be enhanced quickly and pushed live to all borrowers at once, avoiding the pitfalls of multiple app store environments. Lenders can move at the speed of consumer demand without piling on more overhead for themselves or more hassles for the people who simply want an easier path to homeownership. In the end, a mortgage is one of the biggest financial steps most people will ever take.

Offering a frictionless, mobile-friendly path is essential, but it doesn’t have to involve propping up an expensive app that so few borrowers actually want. The best experiences are those that feel natural, welcoming, and free from unnecessary hurdles—and sometimes that’s as simple as letting users skip the download.

Maria Moskver is the CEO of Cloudvirga.

This column does not necessarily reflect the opinion of HousingWire’s editorial department and its owners.

To contact the editor responsible for this piece: zeb@hwmedia.com.