The spectre of automation and technology hangs over a lot of industries in 2019 and the finance and mortgage sectors are not immune from innovation and evolution.
So what technology is being used across the lending value chain to make the loan process faster, smoother and more transparent?
Resolve Finance managing director Don Crellin has discussed five ways that technology has transformed the mortgage process with The Adviser.
He says that Millennials are now the largest demographic for lenders and they are used to operating pretty much entirely in the digital world, something progressive lenders are responding to.
“You can now obtain a rate quote, loan pre-qualification and mortgage via your computer or smart device from pretty much anywhere on the planet,” he told The Adviser.
“All you need is an internet connection.”
Lenders and brokers can now cut down on all the physical paperwork by performing checks, receiving documents and obtaining signatures electronically.
Verifying customer information
Lenders can now also cut down on paperwork and bring the credit decision process into real time by digitally verifying customers’ identity.
Quick decisions give referrers and customers confidence that finance will proceed to approval within the finance clause period.
“We have adapted technology that, once a customer has provided permission, allows our referral partners to submit financial details electronically on the day they meet the customer, with a letter of eligibility then being generated within two to four hours,” Mr Crellin told The Adviser.
“This technology allows us to complete a borrowing capacity check and credit report and provides our mortgage brokers with all relevant supporting information and the ability to issue the letter of eligibility anytime and anywhere.”
Automated valuation tools
New technology can allow valuers to assess what a property is truly worth to facilitate lending.
Valuers can now complete their task without having to actually physically attend the property.
“Sophisticated mathematical modelling can now figure out a property’s estimated value within seconds, whether you’re behind a desktop or curbside with an iPad,” said Mr Crellin.
Scanning and pre-population
Optical character recognition technology allows computers to read scanned documents and contextualise the content.
Saving for a deposit
For customers who fail to meet lending criteria, there’s now technology available that can assist them to meet those requirements in the future.
Customers can use helpful apps to help them control their finances and save for a deposit and can integrate software with bank accounts so they can view their cash flow and debt to get a clear handle on their financial position.