Technology Trends causing Mortgage Industry Disruption

Author - inflooens
Date: 10/8/2020

 

 

Till a few years ago, it would’ve been far-fetched to think about AI/ML, Blockchain, Big Data being associated with money lending. With advances in technology and wide-spread acceptance, there have been innovations that have caused disruptions in the mortgage industry. Thanks to emerging technologies, processes are becoming faster, more accessible, customer-centric. This trend is not limited to new-startups and Fintech companies, but is also finding its way into top lending firms.

In this blog we look at some of the most important tech trends that have changed the face of the industry.

1. APIs (Application Programming Interfaces)

APIs are the backbone of all interactions taking place on an application product. API retrieves and processes data and presents it to the user in a readable format. It also provides an added layer of security for application users as it shares only the information that is necessary. API is viewed as the top technology for streamlining business processes. According to borrowers, adoptions of APIs provide ease of integration and competitive advantage. They can not only be connected to lender’s Loan Origination System to be used for verifying borrower qualification and appraisals, but also for automating work-flows and facilitating compliance. APIs play a key role in ensuring consistency in data and information sharing.

api mortgage lending

Image source - https://capmrkt.fanniemae.com/resources/file/research/mlss/pdf/apis-mortgage-lending-q12019.pdf

 

2. Unified Customer Experience

Customers these days demand technology and have a significant online footprint. Customers are also more likely to opt in for your services if they get all information and facilities on one consolidated platform, in the palm of their hands. In such a scenario, it becomes imperative for lenders to capture customer attention through online and digital service offerings, right from providing online mortgage calculators to loan processing and post-close experience. For this reason, Mortgage CRMs have become increasingly popular as they help lenders in lead management, mortgage LOS, Mortgage pricing, and a lot more. Smart Mortgage CRMs also provide real-time industry intelligence and salesforce management. inflooens is a CRM that is also the smartest Mortgage CRM in the market today that combines all these functionalities.

3. Artificial Intelligence and Machine Learning

Mortgage industry has slowly started to realize the potential of AI/ML in increasing the efficiency of labor intensive and time-consuming tasks involving piles of paperwork. AI/ML can also enhance the evaluation process and make it much more accessible for a wider range of demographic. AI also has a big part to play in data analytics and is widely being used to provide useful insights based on customer and salesforce data that can be leveraged for making informed business decisions. As of 2018, only 27% of lenders were taking advantage of AI. This number is expected to rise to 58% in the coming years.

ai usage in mortgage industry

Image source - https://capmrkt.fanniemae.com/resources/file/research/mlss/pdf/mlss-artificial-intelligence-100418.pdf

 

4. Robotic Process Automation (RPA)

Large and mid-sized institutions are leaning towards the use of RPA for boosting business productivity by automating repetitive tasks. Automation also helps in reducing errors, faster issue resolutions, and thus, higher customer satisfaction. Automation is also being applied for automated data collection that can reduce paperwork, even make it paperless in some cases. This helps in faster turn-around times and reducing costs. Automated follow-up for leads, real-time tracking, scheduling and tracking, chatbots for 24x7 customer interactions, and much more is also being accomplished through RPA.This greatly reduces the burden on human resources and frees their time to undertake more valuable, strategic tasks that help in creating business value.

5. Blockchain

Digital transactions are on the rise and slowly becoming the preferred mode of handling money matters. With this comes large volumes of data and the need for transparency and authenticity. Here, Mortgage Blockchain technology has a huge potential to bring about innovation in financial services. The way it works is through decentralization of the transaction process that is verified, protected, and stored securely. It can help in speeding up the process of approval and make it more affordable for borrowers by reducing intermediaries.

Even though huge advances have been made by the Mortgage Industry to accept and adopt technology on many fronts, it still has a long way to go. This is especially compared to other industries such as retail and travel. Change is inevitable and lenders will have to evolve with changing customer demands that are beckoning to go digital. Technology can work in favor of the mortgage process as it involves multiple stakeholders that require real-time information sharing, both on the side of the borrower as well as the lender. There is a need for having information at your fingertips to set you apart from your competition. This can most easily be done through an easy-to-use Mortgage CRM platform that provides an up-to-date and integrated experience. inflooens is causing a disruption in the mortgage industry by providing the best mortgage CRM platform that has transformed the lending process.

inflooens is the world’s first “Loan Team Optimization Platform”. This next-generation, cloud-based, integrated mortgage platform aims to transform the entire Mortgage Process and enhance customer experience. Learn more about the platform on www.inflooens.com