The market is changing with the entry of the millennial borrowers. Borrowers who are tech savvy, expecting speed, transparency, more service choices and prompt customer service.
On the other hand, the lenders, are constantly working on cost optimization, overhead reductions and focus on providing best of the class customer experience.
With the coming together of the borrowers and lenders, is will be necessary to invest in digitization and online communications tools to remain competitive in the market.
However, digitizing a fragmented and disjointed business-like Mortgage and lending can be a daunting task. Some of the concerns are:
Cost: Traditionally document stacking was referred to the order in which loan documents, submitted by the applicant, are stored in a legal-sized folder. Documents were stored in a specific sequence, making it easier for the loan processor to search for a document in case if he required to refer to a document. With the advent of computers, though digitization has taken place the sequence or ‘stacking’ remains the same.
Rework: Traditionally document stacking was referred to the order in which loan documents, submitted by the applicant, are stored in a legal-sized folder. Documents were stored in a specific sequence, making it easier for the loan processor to search for a document in case if he required to refer to a document. With the advent of computers, though digitization has taken place the sequence or ‘stacking’ remains the same.
Rework: Traditionally document stacking was referred to the order in which loan documents, submitted by the applicant, are stored in a legal-sized folder. Documents were stored in a specific sequence, making it easier for the loan processor to search for a document in case if he required to refer to a document. With the advent of computers, though digitization has taken place the sequence or ‘stacking’ remains the same.
Even in the face of multiple challenges, a fully digitised mortgage process can help resolve these them and add significant value across the complete mortgage lifecycle. The advantages are:
Regulators are constantly monitoring lenders. With digitization and automating processes, the need for manual interferences is reduced leading to reduced errors and faster compliance.
Creating great products and services is no longer the norm. How the services are delivered to the customer can be a game-changer. Best of the class customer experience adds to customer retention, improved brand value and trust leading to improved sales.
A fully digitized mortgage process allows for expanded automation of underwriting, processing, title processing, valuations, closing and quality assurance capabilities.
Leveraging analytics, lenders can target their customers with relevant services and products.
Gone are the days when the customer would say – a good job requires time. Today, faster processing is key to improved market standing.
Digitization is a positive disruptor. Therefore, Mortgage services providers are adapting to new technologies and business models for fulfilling customer needs.
Agreed, digitizing can be daunting. But taking into consideration the long-term advantages, digitization delivers immense value and makes your mortgage business future proof. Some tips for digitization are:
Understand how your current processes are functioning. Every processes needs an input and generates an output. Therefore alliginging the processes in sequential manners helps in understanding digitization needs.
Digitization is not an overnight process. However, with the map in hand, it will be easier to prioritise which processes need to be revamped first.
The primary business of lenders is to process loans, therefore it is not expected to drop everything and focus only on digitization. Instead creating a teamof experienced professinals to driev the transformation is always helpful.Therefore, creating a centre of excellence, a team of experienced employees and external partners who will deftly guide you through the process.
Even after implementing a new system, a major cocnern to be tested is usability. A system might be satisfying business expectations but if its difficult to use or sluggish in processing information then its practically useless. Therefore, exhaustive user acceptance tests should be conducted. The new system will be put through various real life ‘pressure’ situations, results analyised and will be fine tuned, till it achieves satisfactory performance standards.
Analyze the feedback and fine-tune the solution to help in achieving objectives and goals.
Digitization is a positive disruptor. Therefore, Mortgage services providers are adapting to new technologies and business models for fulfilling customer needs.
Every business faces challenges as part of its growth story. But its advised, to partner with experts with deep domain expertise, who know the challenges and have the experience in implementing solutions which would help an organisation achieve its growth targets
Avanze Global Avanze provides customised solutions for the complete Mortgage lifecycles starting from Originations to Title & Settlement, Valuations, Servicing and Default Servicing. We also have an exhaustive assortment of domain-specific products like Direct2Abstract, Direct2Title, Prospecc, @Sign, Prospess, DcoEaze and Doctrac supporting multiple stages of the lifecycle.
Leave a Comment