New Realities of Mortgage Lending FinTech helps lenders

The emergence of Fintech lending solutions has provided customers with options that they never had before. Does this mean that mortgage lenders wouldn’t be as successful as they used to be?

Not if they ride the tide and adapt to new Fintech technology to move forward.

With the fast pace of evolution in technology, it’s crucial that mortgage lenders get on the bandwagon and start integrating their legacy systems with intelligent technological solutions.

Fintech can have a positive impact on mortgage lending and help lenders make their processes more efficient and improve the quality of services that they provide. To understand the need for Fintech in Mortgage lending, it’s important to understand what makes Fintech so alluring to the borrowers.

Why are customers steering towards fintech?

The reasons for customers turning to Fintech for their financial requirements are quite obvious. Customers are seeing value in these solutions because of three main factors:

Faster Process

Since a lot of the processes in Fintech is taken care of digitally, the amount of time consumed for the entire process is considerably reduced. This saves up a lot of their time and makes the entire process much more convenient.

Affordable interest rates

The interest rates that are offered by the Fintech lending companies are more affordable than the ones offered by the traditional mortgage lenders. This is due to the fact that Fintech reduces a lot of overhead costs making it easier for the lenders to charge less.

Easy refinancing

When a customer decides to replace their existing debts with another debt, they need to go through another lengthy and exhausting process. Thanks to Fintech, the time it takes to refinance an existing loan has reduced too. Refinancing is even faster than the initial lending process.

What Fintech brings to mortgage lending

When a lender integrates Fintech into mortgage lending, they are empowered with more than just faster processes and reduced costs. Fintech brings with itself a host of other opportunities for lenders to provide effective end-to-end solutions to their customers.

Here’s a look at everything that Fintech enables Mortgage lenders with:

Improved Customer Experience

In this age of hyper-connectivity, multi-channel communication, and heavy personalization, customer experience is the core of a business model. Building an effective customer experience involves understanding the requirements of the customers, their preferences of the customers, and what they like and dislike. This involves collecting and storing data from various sources continuously. This allows the lenders to tailor make offerings and services based on the inputs they gather from analysis of the data that is being captured.

Efficient Data Management

Fintech makes use of technologies to bring effective data management solutions into the equation. This enables the lenders with the ability to manage the overhaul of data that comes with onboarding customers and bringing in new data every day.

The whole process of data aggregation, insights gained from the data analysis is more streamlined and easy to manage in less time.

Automation

Automation reduces the time spent on repetitive processes and saves manpower that ultimately reduces the costs, helping lenders to deliver faster results at much lower costs and without maintaining a huge team of people. With technology now being able to capture customer data, form fills up becomes easier as it allows prompts that enhance the customer experiences and saves their time.

VolkSoft is a FinTech company that has developed intelligent loan management solutions for various microfinance institutions, private banks, and business correspondence. It has helped countless microlenders in bringing down the duration of a loan cycle using mobility solutions while allowing deeper penetration into wider markets by integrating regional languages and offline mode. Find out more about their solutions here.