The technological era has, indeed, changed the way the world works. Food, grocery, services — almost everything — can be accessed at the tip of your fingers. Aside from convenience, technology has allowed industries and businesses to innovate, keep up, and grow at a far different pace than before.
Mortgage Technology has been in the works for the past decade. Virtual loan officers have connected with borrowers through video conferencing and messaging apps. Virtual open house tours are also accessible. Those who are digitally proficient can pay their loans through online means.
Like all things technology, the mortgage industry can still take it further — like taking out a mortgage loan without ever interacting < with a human being. For Joe Camerieri, EVP of Mortgage Cadence, there are two essential aspects to this conversation: big data and smarter automation.
What is Big Data?
Big data comprise diverse sets of information that grow quickly and consistently. There are three Vs of big data: volume, velocity, and variety. The volume or the amount of data that accumulates at a high velocity, and there are a huge variety of types of data available.
In the technological age, data is everything, and it affects people’s daily lives on the internet more than they notice. Businesses, then, can utilize big data to improve their services and to garner more customers via product development, predictive maintenance, customer experience, etc.
Through big data, information about customer behavior has never been more accessible. Because of this, businesses can gauge their potential customers and customize their offers or experience. It’s also a massive tool for predictions of demand and supply as well as new products.
What is Intelligent Automation?
Digital Transformation pertains to various technologies that lead to the incorporation of more digital processes or assistant in the company. This is where Intelligent Automation comes in.
Intelligent Automation means automating a company’s processes with the help of the data provided by artificial intelligence. It uses process management through Business Processing Management (BPM) to organize tasks, users, and systems. Certain processes and procedures of the company are also entrusted to robots or Robotic Process Automation (RPA), and this adjusts to the business’ current needs. Decisions may also be entrusted to Artificial Intelligence (AI) and analytics.
This kind of automation has been proven to increase employee satisfaction while boosting productivity in the company. As a result of technology taking care of small and tedious tasks, employees who used to be assigned to these areas can take on more analytical and critical tasks. It also ushers in huge possibilities of growth, resulting in more jobs.
How Does the Mortgage Industry Shape Itself for Technology?
Taking out loans through digitized platforms may sound like such a breeze, but there is a reason this has not yet prospered. The issue is trust. Borrowers may be less likely to trust a computer to handle valuable and sensitive information. Additionally, the process of taking out a loan involves a lot of papers, and this could be a challenge to translate digitally.
During the COVID-19 pandemic, the industry realized that moving to digital platforms and maximizing technology is possible. With lenders adopting a work-from-home setup amid the pandemic, the industry took advantage of web-based LOS platforms. Borrowers began trusting the “Apply Now” button. On top of this, there was a 30-40% increase in the productivity of lenders.
This proves the shift in how people have perceived technology over the years. What used to be suspicious then has become the norm in the time when the majority of homebuyers grew up as digital natives. It’s safe to say that mortgage technology can only go forward from here.