A relatively new entrant to the technology-driven era, the banking industry, and particularly, the lending process remains largely inconsistent in terms of compliance and transparency. This is evident from the mundane tasks that are still in existence like filling forms, negotiating a commercial loan, performing a borrowers’ background check, or other routing activities. With the growing competition and regulatory reforms, it is crucial for banks to address these shortcomings by being open to digitalization opportunities offered by a multitude of fintech solution providers.
The popularity of cloud computing is on an upward slope for the past few years due to its efficacy in increased scalability, cost-effectiveness, and agility. With that addressed, several solution providers are offering to improve automation, cybersecurity, data analytics, and machine learning capabilities in a bid to ensure enhanced lending management for banks. As regulatory inconsistencies increase, using technology to help banks and financial institutions with organizational and compliance management has become essential in eliminating risks in lending. In addition, blockchain is another groundbreaking technology that aims to boost the lending space, with better risk control and transparency, thus restructuring lending operations. Compared to the traditional banking systems, modern-day fintechs are playing a significant role in the revolutionary changes of the global lending market. As the means to build digitalized and streamlined platforms that meet the ever-evolving expectations of customers, banks are forging partnerships with solution providers.
Mortgage brokers and lenders are both investing in consumer-facing technology to increase their brand value and create brand awareness. Irrespective of whether they are existing borrowers seeking a remortgage or first-time buyers, consumers today want an Amazon-like experience. Robotic process automation is helping to improve operational efficiencies across businesses by combining automated object recognition, optical character recognition (OCR), and direct application integration. In a recent study, it was revealed that 63 percent of current lenders are aware of technologies like AI and machine learning, while 27 percent of them have already experienced AI and ML-based tools first-hand within their company.
On the other hand, lending management solutions optimize end-to-end loan applications to expedite the process, and it is the most significant differentiator in auto loan financing. These solutions offer all-inclusive lending management functionality for various types of loans, alert management, configurable credit monitoring activity, omnichannel settlement of the account, bank-oriented rephasement, and rescheduling of the events. As lenders prepare for 2019, it will be imperative for businesses to quickly understand the impact of technologies, implement them for understanding borrower needs, and optimize customer experiences to be the frontrunners. While forward-looking lenders have already begun digitalizing their processes, there are several roadblocks to the adoption of new technologies.
To help companies navigate through the best-breed of mortgage technology services providers, Banking CIO Outlook has compiled this edition on the most promising services providers. A distinguished panel comprising CIOs, VCs, and industry analysts, along with Banking CIO Outlook’s editorial board, has evaluated and shortlisted the vendors that have significantly stood out as some of the most prominent players in the mortgage technology arena for the year 2019. The mortgage technology service providers featured in this issue have established their eminence in the banking sector through their business knowledge and industry prowess.
We present to you Banking CIO Outlook’s “Top 10 Mortgage Technology Service Providers 2019.”