The digital mortgage is one of the fastest-growing trends that is transforming the customer experience in banks by simplifying the complex mortgage processes.
FREMONT, CA: Evolving consumer behavior and expectations have largely transformed the mortgage industry. The emerging technologies are also contributing to the disruption in the mortgage practices. Further, the digital revolution has largely impacted the public as well as the private sectors. Digital mortgages are also transforming the experience for the customers with streamlined processes and reduced origination charges. Mortgage lenders can benefit from digital mortgage technology by automating several manual processes without compromising on the quality.
Conventionally, a time-consuming process that required filling complex application forms in banking riddled customer experience mortgage. Submission of several documents and a lack of transparency in the banking processes led to an even worse experience for the customers. Modern mortgage technology is a much faster and simpler alternative to its traditional counterparts. A digital mortgage system equipped with an online mortgage application might take just a few minutes for the customers to complete the process.
The major financial institutions such as JP Morgan Chase, Wells Fargo, and Bank of America (BOA) have realized the potential of a digital mortgage solution. The afore-mentioned firms have already released their digital mortgage lending platforms that are enabling them to enhance the customer experience. Moreover, digital mortgage solutions also enable firms to minimize their operational costs as well as the possibility of fraud.
With the entry of retail giants like Amazon in the mortgage landscape, digital-only mortgage banks are gaining grounds. Conventional lenders need to devise an integrated digital strategy to counter the new entrants into the mortgage space. The emergence of digital-only banks will also impact the entities with a large physical presence. Not only will the digital-only bank need reduced operational costs against their traditional contemporaries, but they also attract new customers with better interest saving accounts due to reduced overhead costs. For instance, digital banks are offering an interest of 2.25 percent, while the major banks are offering a fraction of it to the customers’ savings account.
Digital mortgage solution has changed customer’s expectation on how long the processes should take and how transparent the lending processes should be. Thus, the technology offers an opportunity for financial institutions to streamline their processes and strengthen the customer-lender relationship.
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