the digital version of the paper process.
Few technology providers have stopped
to ask “why,” and mortgage companies
themselves have fallen short in their
willingness to reevaluate traditional processes in light of new technology.
Are you taking advantage of available technology tools and placing bets
on new, innovative ways to originate a
mortgage? Are your technology partners questioning your process and delivering model-changing solutions for your
The combined effects of the cloud,
neural networks, artificial intelligence,
data visualization and analytics will
continue to accelerate exponentially.
The winners will be those who adopt
and leverage these tools effectively.
Clayton Christensen, one of the world’s
foremost authorities on disruption, believes that, more often, incumbents are
the ones that lead innovation at scale in
an industry, not new entrants.
So traditional mortgage execu-
tives must strike the balance between
long-term revenue leadership. One
approach is to become a student of the
competition to track the trail of tech-
Large banks, even at their plodding
Increase the value
pace, were among the first to adopt
digital point-of-sale technology, for
example. Likewise, track the startups
across the globe that are fundamental-
ly reimagining the business. While their
business models could be wrong, their
innovation could have implications for
even traditional mortgage lenders.
In its next chapter, the digitization of
the mortgage process must deliver on
the promise of value creation, and not
merely promote a “better experience.”
Originating institutions will be under
increasing pressure to broaden their
product offerings while also personalizing the experience for the borrower. This diminishes the ability to drive
down costs from labor reduction.
Instead, efficiency becomes critical,
and that involves automating more aspects of origination, gaining end-to-end
production visibility and extending data
analysis to each part of the mortgage.
Mortgage companies should demand
technology partners who openly participate with each other through modern
integrations. Open ecosystems will dramatically enhance the ability to create
value, rather than slowing it down.
Value also increasingly will be created
by deepening the ties between stages
of the value chain. Mortgage companies
can differentiate their offerings through
value-added services that streamline
the process. And, by bringing real
estate agents, loan officers and other
third parties closer together through
transparent, collaborative technology,
mortgage companies can make their
partners better at what they do and
promote loyalty in a network that only
grows more interdependent over time.
n n n
In the first chapter of the digital mortgage, we witnessed a step-change
function in the experience. We’ve also
learned that the mortgage industry has
tremendous value at stake as it continues to evolve.
Complacency is dangerous. Those
mortgage executives who recognize
the source of strength is in people
powered by technology, who challenge
the traditional production process,
and who intentionally focus on value
creation, are the leaders who will
captain companies that have every
chance of beating the market. n
<< Personal continued from Page 74 “The digitization of the mortgage
process must deliver on the promise
of value creation, and not merely
promote a ‘better experience.’”
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