The current mortgage process is challenging for all involved. For customers, purchasing a home is likely the biggest purchase they will make in their lifetime. The knock-on effect is that pressure on mortgage providers to deliver a smooth and supportive service is intense, with customer emotions often understandably heightened. With tech integrated into so many areas of the public’s lives, customers no longer have the patience for outdated processes and clunky systems. 

It's believed that mortgages were first available in Britain as early as the 12th century. The initial concept was that your property would be used as collateral against your debts. Your property titles would then be returned to you once your debts had been fully repaid over time.  The question now is, how can mortgage lenders embrace 21st century technology to help solve problems rooted in the 12th century? Both customers’ and the providers’ lives can be made easier. The answer lies in digital transformation.

What Can Be Done to Save the Day?

Mortgage brokers looking to provide a better customer experience must utilize the vast array of digital tools available to support them in streamlining processes and procedures. Organizations need better systems for organizing, accessing, and managing their data. More accurately collecting and analyzing data enables financial institutions to make better informed decisions on what sort of mortgage is appropriate, speeding up the timeframe.

We’ll explore four key pillars that will support digital transformation in the mortgage sector.

Hyperautomation

Hyperautomation will be key to improving the total experience and will drive operational excellence within financial institutions. Many banks have already invested in some form of automation, but in most cases single-point solutions are dedicated to one specific task. This can lead to disjointed processes. For optimum operational efficiency, a more forward-thinking approach is required. End-to-end solutions that automate manual tasks, data entry and review/approval routing, plus integrate with other processes and core applications, will allow for more harmonious operations.

The hyperautomation of internal tasks will allow mortgage providers to focus more time on providing personalized customer service, which will vastly improve customer experience. 

Adopting a powerful process orchestration engine is key to hyperautomation efforts. These tools can fill the gaps between mortgage origination and other business applications, accelerating underwriting and mortgage review workflows. For example, by utilizing a robust process orchestration engine, an organization could provide a web interface for customers or brokers to submit mortgage applications with supporting documentation. 

Following the first round of interviews, the organization could then feed data directly to the core banking software and loan origination system for processing, eliminating both manual and duplicate data entries. Providing employees with access to real-time information, directly from core banking software, could be a huge help when referencing customers’ mortgage and personal information – all from a single interface.

Artificial Intelligence

Artificial intelligence (AI) is opening the gates to mortgage heaven. As financial institutions continue to integrate AI into their systems and processes, we can expect a more streamlined experience. AI chatbots are becoming more common in financial services, enabling customers 24/7 support with no wait times. Chatbots can also offer more guided experience when reviewing forms or searching through websites. Lengthy forms may also be a thing of the past as AI will assist with the automatic filling out and filing of documents. 

Leveraging AI will also allow financial organizations to reduce repetitive administrative back-office tasks — such as data capturing and migration — enabling employees to provide faster customer service. 

Cloud Adoption

Many financial institutions have historically resisted moving sensitive information to cloud computing services. However, as security practices have evolved and cloud providers have invested heavily in advanced threat detection tools, companies are increasingly looking towards cloud-based solutions. Moving to the cloud also offers more streamlined, cost-effective software maintenance and security updates.

This will result in better resiliency and better continuity for customers. It will also support scalability within the sector, with IT resources freed up to focus on high-impact solutions. 

System Integrations

The next phase of digital transformation for many financial institutions involves integrating core systems to further reduce manual tasks and data entry. The mortgage process is still laden with cumbersome activities such as income verification and document collection, many of which must be performed multiple times because of a lack of data integration. Connecting systems creates a frictionless experience for employees and customers; meanwhile, organizations can maintain a single source a truth and mitigate the risks that come with having data stored in multiple places. 

Integrating an organization's single source of truth with core banking software and loan origination systems, for example, can give mortgage specialists access to real-time information, no matter where it is stored, without having to switch applications. 

Ultimately, streamlining these processes can also lead to expedited underwriting, faster credit checks and more seamless reviews and approvals, crucial competitive differentiators in a fast-moving real estate market. 

A Brighter Future

You may not be surprised to hear that the term ‘Mortgage’ derives from the French words ‘Mort’ meaning death and ‘Gage’ meaning pledge. That's right – a death pledge. However, things were never as dark as the name suggests, and the opportunity for things to get brighter is exponential. With the days of faxing information back and forth long gone, mortgage brokers and banks can begin to offer a smoother mortgage journey to the potential homeowners of the future. 

By utilizing tools empowered by AI, customer service representatives can quickly retrieve a document or copy of a signature directly from a cloud-based system. As the mortgage sector continues to digitally transform operations, the benefits will be felt by all stakeholders, from employees to customers to shareholders. Innovative financial institutions are already enhancing the customer experience with the use of cloud-based process automation tools and integrations.

Whilst it’s not always possible to eliminate every bump in the road, the introduction of digital tools will help make the journey towards attaining a mortgage significantly smoother. And it’s not just customers that will benefit. When lenders are empowered with clear insights and tools that supercharge how they organize, access, and manage data, they are well-equipped to offer more efficient, intuitive services for years to come.

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