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Digital mortgage operations: Transforming the mortgage industry

About 80% of potential borrowers want the loan application process to be entirely online. That number says a lot about the kind of expectations customers have from lenders in the mortgage industry today. Modern borrowers have come to expect a seamless and hassle-free experience in their interactions with their lenders, including aspects such as:

  • An exceptional end-to-end customer experience
  • Maximum flexibility in the services or products they avail
  • Personalised products and services for their mortgage needs

For lending businesses, all these expectations point towards moving from legacy systems and processes to a rapid, agile, and error-free mortgage lending process.

Why legacy mortgage processes are no longer effective?

Every industry is trying to switch to smarter processes aided by new technology. The same applies to the mortgage industry as well. With borrowers expecting a digitally-enabled mortgage experience to become the norm, it is critical that lenders work towards digital mortgage transformation to avoid or overcome the following principal challenges:  

  1. Operational inefficiencies
  2. Disparate legacy systems, a massive amount of manual work, lengthy processing times, and incredibly high operating costs combine to make transactions slower and everyday operations unproductive.

  3. Huge volumes of paperwork
  4. The incredible amount of paperwork and cross-verification, in addition to the constant pressure of streamlining the mortgage process, brings the existing procedures and workflows under duress with no positive outcomes.

  5. Lack of visibility into the process
  6. Because of the involvement of multiple stakeholders (lenders, realtors, attorneys, regulatory authorities, etc.), one of the biggest challenges that lenders struggle with is the lack of transparency and process visibility — two things that are essential in order to stay on top of things.

How digital mortgage operations are transforming the industry?

Like other business processes, the key to transforming mortgage operations lies in automation and digitisation. It isn’t surprising that organisations in this niche are striving for complete mortgage business transformation through a mix of man, machine, and methodology.*

Successful digital mortgage transformation calls for a holistic approach. Simply upgrading legacy infrastructures or deploying re-platforming initiatives won’t be enough going forward. Your digital strategy must encompass the following elements to enhance your mortgage processes and deliver a satisfactory customer experience:

  1. Digital transformation through mortgage process optimisation
  2. Minimising the gap between the application and the final closing time — in terms of time taken — is critical to process improvement. Using a process engineering–oriented approach to process optimisation makes it possible to work towards mature workflows. In addition, using specialised apps for specific tasks can help improve user engagement and customer satisfaction.

  3. Digital transformation through mortgage process automation and standardisation
  4. There is heavy reliance on manually-intensive processes and legacy systems in the incumbent mortgage lifecycle, which increases the effort required and time taken and reduces the focus on process improvement. To address this challenge, forward-looking enterprises are already investing in smart technologies and solutions powered by artificial intelligence (AI), machine learning (ML), and robotic process automation (RPA). By automating a large part of the process - the repetitive tasks, in particular — a lot of operational pressure on activities such as origination, underwriting, servicing, and marketing can be relieved.

  5. Digital transformation through mortgage analytics
  6. The increasing reliance on analytical tools is a good sign for the mortgage industry because they allow businesses to dive deep into their workflows and processes. Advanced analytics can help identify key gaps, understand why they exist, analyse customer needs and demands, and provide invaluable insights for better decision-making.

The perfect mix of these three approaches or elements can drive significant process improvement and help you deliver a better and more personalised customer experience.

How can Infosys BPM help with digital mortgage solutions?

Infosys BPM has proven expertise in assisting lenders in their digital mortgage transformation journeys with innovative and agile digital mortgage solutions that combine people, process, and technology. Our Mortgage Centre of Excellence (CoE) leverages experience from 50+ global mortgage clients to help you with cutting-edge best practices. Learn more about our digital mortgage operations solutions.

*For organisations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed on organisational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like a living organism, will be imperative for business excellence going forward. A comprehensive, yet modular suite of services is doing exactly that. Equipping organisations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper- productivity, Live Enterprise is building connected organisations that are innovating collaboratively for the future.