One of the important factors driving the mortgage sector is home buying. Due to the recent pandemic, home buying came to a virtual standstill. But as states and countries are reopening, the pent-up demand is getting reflected in sales recovery. According to the National Association of Realtors (NAR), the sale of homes increased by 5.9% in July 2020 as compared to June 2020. Lawrence Yun, Chief Economist, NAR says “We are witnessing a true V-shaped sales recovery as homebuyers continue their strong return to the housing market”
Additionally, there is positive news in the building inventory too. As per marketresearch.com “Construction of new housing is forecast to increase 1.6% annually through 2023, with expansions driven by increasing urban populations, stronger consumer finances and access to financing”.
If one has to loosely define FinTech or Financial Technology it is the technology and IT solutions which aims to replace the traditional methods of delivering financial services. FinTech is the buzz word in the financial world, and it is gaining wide importance with the incoming millennial generation and the ‘V’ shaped recovery described above. The main push of Financial technology is in the mortgage sector, as it delivers the following advantages:
Efficiencies:Almost 70% of the cost goes into human labour. With digitization, there is a possibility to optimize overheads and improve efficiencies.
Omni Channel Processing:One of the biggest challenges faced by the mortgage industry is processing huge amount of data. Ability to access loan-related information such as applicant financial history, relevant regulatory information from a single channel is a needed change.
Customer Experience:For the borrower Fintech allows a better choice of available services. Which in return helps the lenders by providing a steady stream of pre-qualified applicants into the system.
The need for speed, security and convenience have spurred the adoption of financial technology. The market was valued at $127.66 billion in 2018, expected to grow at an annual growth rate of 24.8%. The trends one should watch out for are:
Avanze Global delivers innovative solutions to emerging technologies and advanced delivery platforms, that are cost-effective, agile and scalable.
DocEaze is an OCR + AI-based document management platform for the loan origination and servicing industry. It automates Indexing/ Stacking of documents across multiple stages of loan production vis-a-vis Loan Intake, Post-Closing, Pre-purchase Review & Loan Boarding.
Direct2Title: A app-based property report generation platform enabling search and tracking documents, progress and property report generation using a cloud-based platform. Both these solutions can provide intelligent analytics for improved decision making and the ability to efficiently manage operations.
Avanze Global is the perfect partner to align with for your growth story.