About Evolving Business Models in the Mortgage Industry
by Thomas Lin
We all have been talking about how the mortgage industry has evolved in the past few years. With the changes in the industry, technology and service providers have also brought in several changes to their business models.
PWC recently published a report named, “Financial services technology 2020 and beyond: Embracing disruption” which states that, ‘global Fintech investments have tripled since 2014, reaching more than $12 billion. In comparison, banks spent an estimated $215 billion on IT worldwide in 2014, including hardware, software, and internal and external services. This is a material number, and because it is so highly targeted, the FinTech spending will really make an impact.’
These numbers only suggest that technological changes are here to stay. Also, while the transformational impact of digital technology has been comparatively slower to reach the financial services industry, it seems to have arrived now and is here to stay. These changes are likely to become the new normal for the financial services industry, especially the mortgage industry.
Over the past few years, the mortgage industry has been slowly welcoming this technology change which is taking us to the future of how mortgages will be processed. We can see that all mortgage lenders big and small are investing their time in exploring and understanding how newer technologies can help their business.
Most of the industry leaders in mortgage seem open to embrace new technologies. Tech terms like Artificial Intelligence, Machine Learning, RPA, Data Analytics are gaining a spot in business plans. Mortgage lenders are now changing their business models, given the newer technologies, they plan to implement.
They are also more welcoming towards the service providers who are proactively investing in such technologies to support their lender clients. They can see how service providers are doing their best to adopt newer technologies and explore how they can be applied to the client’s business processes. Service providers as well are taking the extra step in incorporating high-end technologies as a part of their solution in order to provide improved efficiencies and better customer experience.
Visionet has also been actively investing in newer technologies for the mortgage industry. They offer a unique combination of best-in-class global BPM delivery, proprietary IT products, and digital technologies for the mortgage industry. We all have seen how digital transformation solutions are changing the face of the business, and one such solution is CogniXL (earlier called VisiLoanReview), Visionet’s AI/ML-powered document processing solution. Over 8000 business rules are pre-configured in this solution to ensure over 98% accuracy in OCR/ICR.
Lenders are significantly benefitting from this solution as it can reduce processing time by over 30%. CogniXL also has a fully functional integration with leading digital loan origination systems like Encompass from Ellie Mae and a few others. This seamless integration ensures savings in time and higher accuracy. We believe that the integration will truly drive quality and efficiency in the loan origination process. In days to come, Visionet is also planning to launch Loangility, a Salesforce native Point of Sale (POS) solution.
You can read more about Visionet’s technology initiatives in an interview with Alok Bansal, Visionet’s MD, featured on National Mortgage Professional.