Over the last decades, technology has had a huge impact on our lives. Many of the things we do every day would have been inconceivable a couple of decades ago. Video conferencing from our mobiles, managing our finances via an app, watching news programs online, trading, gambling, and even dating have all been enhanced by technological advancements.
But what about the home financing and mortgage sector? What are some of the key developments that have shaped its growth in the last few years?
Big data is the collection, processing, and use of large amounts of data. The information is then used to help businesses make better choices regarding their products and services. For example, in the mortgage industry, big data could analyze data from millions of policies including terms, value, personal data (including average age, sex, job, location), issues with late payments, and various other information.
The findings can then be processed and used by companies to offer better services and customized lending experiences. The use of such data can also be helpful in underwriting and assessing the risk of lending to certain demographics. With such a process being largely automated, costs borne by mortgage providers can decrease with the benefit going to the consumer.
Widespread internet access and accessibility via mobile devices have driven forward a demand for fintech solutions. Increasingly, consumers don’t want to waste time on the phone or visiting institutions in public. Instead, they want to take care of all financial matters via their phone, wherever they are, and at a time that suits them.
Everything from opening a bank account, making payments, trading, and investing can now be facilitated via a mobile device. Homebuyers can also compare mortgages via the Trussle online mortgage comparison site. By inputting their requirements and budget, they can look at all the deals from leading providers. This saves them having to call, visit, or email providers individually, increasing convenience and customer satisfaction. Even features such as mortgage calculators are offered to allow users to quickly determine what they can and cannot afford.
AI has significantly simplified a number of important processes in the finance world. From customer service to client onboarding, the use of artificial intelligence has lowered costs, made matters more accurate, and saved time. In the mortgage world, AI is being used to quantify the requirements of prospective mortgage havers and to process their applications.
The chatbot can request documents, store them, pass them to other departments and even scan them to make sure they contain the right information. AI can also act as 24/7 customer service, providing answers to various queries and directing clients to the right department. Additionally, AI collects and processes all the data it uses, meaning it can be utilized by big data. Technology continues to evolve and with it comes new and exciting ways of doing things. Blockchain, crypto, and even VR & AR are some of the other disruptive technologies that we can expect to see impacting the mortgage sector, and many other sectors in the future. Soon, the thought of having to go visit a mortgage broker and sign a piece of paper will be nothing but ancient history!