28 MAY

Why is it required?

According to a report from Mareesa Nicosia for Mansion Global “The group of individuals born between 1981 and 1997 “are reaching key life milestones” in 2020—4.8 million of them are turning 30, a time when many people purchase their first homes. The eldest of the millennial generation will turn 39- often a point when people look to move from the city to the suburbs for family-friendly amenities.”

It’s obvious, that millennials are going to be the next force multipliers for the Mortgage and Lending industry. The process of hiring a service e.g. Mortgage goes through the following stages:

  • Research: Search for viable mortgage service providers.

  • Review: Review their lending conditions.

  • Calculate: Calculate affordability.

  • Purchase: Hire the service.

There are two good reasons which will decide how these stages will be implemented by a mortgage service provider:

Incoming Tech-savvy generation: The millennial generation grew up with the internet and mobile devices. They are well conversant about how to use the internet and its advantages by the time they reached their adolescence. This generation expects faster, accurate and online solutions to be made available on their mobile devices.

COVID -19: The Covid-19 pandemic introduced the new norms like social distancing, work from home, touchless transactions etc. Going digital was the best and the only option available.

Mortgage business needs to be customer-centric i.e. it needs to evolve with the changing customer expectations. But it's not enough to claim ‘We are on the cloud’. It is important to understand what it means to be on the cloud from a lenders point of view.

What is ‘Cloud-based’?

Cloud can be simply defined as “A term that refers to applications, services or resources made available to users on-demand via the Internet from a cloud computing provider’s server”.

The important points to be considered here are on-demand, via the internet and from providers servers.

The term ‘Cloud-based’ entered the IT world in the year 2006. Then it was considered to be something fancy, something which only a few would be able to make use of. But, 14 years now, this fancy term has become a mainstay and has proved its viability multiple times over.

Will it help?

Some advantages of cloud-based solutions are quite obvious:

  • Lesser IT costs

  • Scalability

  • Business continuity

  • Effective Collaboration

  • Mobility

  • Greater Insights

  • Access to updates

Till a certain point in time, robust processing power was available only on-premise, with Cloud-based solutions this power was made available to every concerned individual 24x7.

Cloud-Based, SaaS were the game-changers for all industries. Considering the attributes and expectations of the next generation of home buyers, there is no doubt that cloud-based solutions are the best way forward.

So, are any Mortgage bankers using cloud

Sierra Pacific Mortgage, one of the largest independent mortgage bankers in the United States, uses a cloud-based business analytics service. The solution has helped in informed decision making.

Across the world, Athena, a big player in home loans, is considered to be one of Australia's first pure digital mortgage providers. Its cloud lending platform has allowed it to optimize its backend processes, allowing it to pass on the advantages to its customers.

Continental Bank, headquartered in Salt Lake City, Utah, has invested in digitizing its core banking processes. They have installed TCS BaNCS Cloud for optimizing their processes.

Recently, Hoyne Savings Bank has implemented digital lending services to expand its customer base. The bank services communities across Illinois.

A slow but sure shift was being observed in the industry towards cloud-based solutions. But with the pandemic and changing customer expectations, the shift has gained pace.

Generally, it is assumed that cloud-based solutions are for the established few, but that is a misconception, rather cloud-based approach has the potential to make an organisation.

Does company size matter?

No! Regardless of the size of the organisation, Avanze can be a trusted partner in the journey of digital transformation.

Avanze understands the challenges and scepticism faced by mortgage lenders regarding cloud solutions. Leveraging on a collective experience of almost two decades, products are developed with a laser-sharp focus to deliver value to Mortgage lenders.

Avanze has productized solution for Loan Origination:

docEaze: Automate Indexing, Loan set up, Processing and Quality check for Pre-Funding and Post Closing, thereby reducing the overall loan production timelines.

DocTrac: Origination workflow management platform enabling status tracking of a loan application across different stages from Application to Closing. With its analytical and capabilities, it helps define and tracking of SLA’s at every milestone covering Production, Quality and TAT.

Avanze is an emerging leader in providing SaaS-based technology solutions for Title, Post-Closing, Settlement, Origination, Valuation & Servicing industries. A SOC 2 Type II, ISO 27001 & ISO 9001 certified organisation, Avanze is led by a team of stalwarts with almost two decades of collective experience working in the Mortgage and Settlement sector. If you are looking for a solution, probably Avanze already has developed it.

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