5 Ways Digital Innovation Has Reshaped the Mortgage Industry

The Digital Age has triggered a technological metamorphosis, drastically changing the face of almost every industry you can think of for both the business and the consumer. To no surprise, the mortgage industry is no exception.

Customers now expect the fastest possible results, plus a wide array of digital tools to make the process easier and more convenient for them.

In fact, 80% of potential borrowers would prefer to keep their dealings with mortgage lenders entirely online.

Given this seismic shift, the changing mortgage market has seen lots of new opportunities and shake-ups as the industry faces the ever-changing backdrop of the 21st century.

Spurred state-of-the-art mortgage automation software

Automation is an everyday part of our lives, but when you think of mortgage applications, do you think of an automatic process? More than likely, the words “mortgage applications” conjure images of paperwork and hair-pulling headaches. Fortunately, inconveniences, such as shoddy customer service and instances of fraud, are a thing of the past with automated mortgage applications.

With the high-tech help of mortgage automation software from LoanPro, forward-thinking lenders can guarantee quick turnaround times on the application process, help build more accurate annual revenue forecasts, and continually meet the market’s changing demands.

Innovative tools help foster a seamless experience

Modern technology allows mortgage lenders to work more efficiently and get the best rates for their customers. Calculator tools and online scenario analysis help banks to utilize customer information without all the clunky red tape. Points of contact are much easier to get a hold of, banishing many customer service woes for mortgage lenders.

Efficiently reduces high operating costs

Document management tools can ease the overhead by eliminating much of the old paperwork involved with mortgage applications. Mistakes and errors can be costly, and digital innovation helps to reduce these by quite a bit.

By trimming down operating costs, employees can shift their focus to borrowers and the banks rather than draining precious mental energy over towering stacks of paperwork, thus increasing pay efficiency. The less busywork the mortgage lenders and banks have to endure, the more time they can spend on customer satisfaction.

It simplifies a complicated process

Artificial intelligence and data analytics are just two of the many digital tools that mortgage lenders and others in the housing market can use to streamline the complicated lending process. The sheer amount of data available naturally makes gathering the needed information and applying it to the lending process much less convoluted.

It helps the underdog succeed

Access to the internet empowers the every-man lender. With this technology at their disposal,  no longer are the days of wealthy and successful mortgage lenders monopolizing the market. Today, even the Average Joe can compete and capture the attention of borrowers.

Up and coming lenders can offer their services to borrowers and network with banks with ease. In days past, the leaps and hurdles one needed to cross were quite steep. Now the entry threshold is reachable.

Living in the digital (mortgage) era

In the wake of the COVID-19 Pandemic, mortgage lenders were faced with many challenges.

During quarantine, the ability of digital technology to connect buyers with mortgage brokers changed the way many in the industry looked at the mortgage application process.

Even after life returns to normal, the effects of the pandemic are sure to be felt for years to come.

Currently, 91% of mortgage lenders offer traditional means of applying for mortgages alongside digital tools that ensure transparency, convenience, and speedy results.

Given all this information, it is easy to imagine a future where the old ways of mortgaging your home are long forgotten. With traditional strategies stepping aside, new future-forward methods proudly dominate the mortgage market.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.