With technology constantly evolving, borrowers have also evolved embracing technology in every walks of their life. But the lenders have not kept pace with their customers and technology still remains to be an overlooked space in Mortgage Industry especially when other Fintech industries have already made good use of it.
Here are some of the innovative technologies which Mortgage industry can look upon to reduce cost, increase transparency and be more efficient.
Mortgage industry is a data intensive space with multiple participants keeping copies of the redundant documents taking up time and data storage space.
The cryptographic approach of Blockchain offers a perfect solution with the concept of a decentralized ledger which can be full, limited or private.
The transactions made inside the ledger which are basically information statements about a customer can be made tamper proof with the best encryption standards.
Source of information can be verified by the proof of concept.
Mortgage use cases for Blockchain adoption includes
- mortgage portfolio transfers,
- loan processing
- loan closing
- payment processing
Artificial Intelligence & Machine Learning
The next disruptive technology of Artificial Intelligence can revolutionize the lead acquisition mechanism currently followed in Mortgage industry.
The conventional system has a low conversion rate with repeated calls and follow-up mails to prospective customers.
AI combined with predictive modelling algorithm can acquire a customer even before he or she has filled the lead generation form with the help of targeted marketing.
Machine Learning can sense retention patterns and risk of default and can alert the concerned department about the same.
In the age of self driven cabs, mortgage industry is still lagging behind without fully self driven mortgages. Millennials being the next big target audience, enhanced user experience implies completing the loan process with minimal human interference.
Natural Language Processing (NLP) can enable machines to read and scan through the documents uploaded by the users during the loan review process and report any inconsistency or fraud.
Neural networks can be employed to review the credit scores regularly and alert the loan officers about a potential customer or default risk.
A centralized standard system can automatically pull out user account information for verification instead of repeatedly asking customers to provide their income statement, W2 information etc.
Front End Mortgage Platforms
Front end Mortgage platforms are the gateway for rendering a truly end to end mortgage experience for the customers.
Mobile-first POS platforms are created by Mortgage technology companies like Roostify, Promontech.
These platforms provide users with real time accessed information and helps in streamlining the entire mortgage process.
The enhanced user experience starts with user friendly graphic design where the users can navigate easily and complete the mortgage process with as few clicks as possible.
Compliance regulation still remains to be a major hurdle in making Mortgage truly digital. But with more sophisticated technologies like Deep Learning, time is not far away where Mortgage companies can completely quench the demands of a tech savvy generation.