XDOC recently attended the MBA National Technology in Mortgage Banking Conference & Expo (more commonly known as MBATech) in Chicago. Here are three takeaways from this year’s event.
Rise of the Fintech
Before this year’s event we predicted that the impact of Fintech on the lending industry would be a hot topic, and we weren’t wrong. There are a number of forces driving disruption in the mortgage lending space, including:
- Lenders’ pursuit of a paperless environment;
- Consumers’ dwindling loyalty to big banks, and;
- Increasing demand for faster and more efficient processes all-round.
Each of these factors present unique opportunities for forward-thinking tech companies to capitalize on an industry which is currently in the midst of a digital transition, and consumers that seek convenience above all else.
The future is blockchain
Blockchain, the technology most commonly associated with Bitcoin, could significantly reduce friction in the mortgage lending process according to industry experts, as well as offering many other operational and financial benefits.
Last year PwC published a white paper entitled What might blockchain mean for the mortgage industry? Within this paper, the following explanation was given as to how blockchain technology has the potential to touch the lending cycle at every stage:
‘At origination, blockchain might help establish more accurate recordkeeping. At fulfillment, it could provide immutable proof that loan estimates were sent within three business days. Smart contracts would speed up settlement flows. In the mortgage servicing process, blockchain could track the movement of payments. And in the secondary markets, it might provide transparency about the ownership of underlying assets.’
Blockchain provides a way to eliminate paper-based record keeping and speed up transactions. With this, 2017 looks set to be the year when blockchain makes the transition from buzzword to business model.
Technology should be embraced
At an event centred around technology and innovation, it is little surprise that the general vibe towards the digitization of lending was more positive than not. However, increasing consumer demand for faster, more efficient processes has left lenders with little choice when it comes to embracing new technology; put simply, it’s evolve, or get left behind.
Most lenders have already made the transition to paperless lending, but for many, existing solutions still require a lot of printing and extra steps to loan completion. Companies are seeking solutions that can eliminate those extra steps, whilst ensuring that security, compliance, and accountability remain uncompromised.
Discussions around automated document recognition (ADR) were common at the XDOC stand this year, as lenders look for ways of auto-filing documents with better accuracy and speed. Data extraction was another topic that generated a lot of interest, with lenders seeking ways of pulling information from documents for reporting and compliance checks. The underlying feeling from this year’s event was that the industry is growing ever warmer to technology, and that innovation is something to be embraced, not feared.
Did you miss us at this year’s event? Book a demo with us online today to discover the all new XDOC.