Mortgage industry being an industry riding on data driven decision making is seeing a paradigm shift in which business decisions are generated different sources rather from a few decision makers. The advent of Big Data and making it available for the C-levels has made this unprecedented transformation possible in the Mortgage Industry.
Data in the digital universe has doubled every two years since 2013 and will reach 44 zettabytes of data by 2020.
What does this mean to Home Buyers?
Increased transparency: Data democratization allows end users to access and analyze information digitally which paves way for more transparency in the entire loan life cycle.
Speedy Process: With hierarchies and gateways getting bypassed in decision making, the homebuyers can expect their mortgages approved within a shorter time period.
Better comparison: With access to information about the loan products and rates available, home buyers can easily compare between different loan products and services.
Automated Mechanisms: Automated analytic technologies like Automated valuation models (AVMs) and home price index (HPI) are products of data democratization being used in the analytics field to make strategic decisions.
Personalized experience: The use of AI, machine learning and predictive algorithms on the available customer data has delivered tailor made loan products to the home buyers.
How does data democratization impacts lenders
Accurate decision making: Data democratization has changed the manner in which data is being used and accurate analytical tools provides clear insights which in helps in forming accurate decisions.
Holistic view: Increased transparency and accessibility of information to more levels gives the employees a holistic picture about the organisation which helps in taking better financial decisions.
Better risk management: The risk metrics calculated based on the loan portfolios helps lenders to make decisions on loan eligibility and loan pricing with minimum risk.
Dealing with huge influx of information: Complexity of collecting, analyzing and interpreting data is increasing at an exponential rate. The only way to deal with huge influx to derive actionable insights is to make this data available for more employees within the Mortgage banks.
Increased collaboration: Mortgage banks can collaborate with fin-tech enterprises and other banks to develop new technologies and utilities which is possible only if data is shared on a larger scale.
BI tools for Data Democratization
Top BI tools widely used to enact data democratization in Mortgage Industry includes
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Data Visualization Tools for Data Democratization
Top Data Visualization tools for data democratization in Mortgage Industry includes
Offline : Microsoft Power BI, Tableau
Online: Picktochart, Canva, Infogram
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