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Wednesday, April 3, 2013

Mortgage Technology Predictions for 2013

It's easy to say that the mortgage industry has experienced a few tough years; the state of our economy and an increasingly stringent regulatory regime have seen to that.  Because of this, the focus in the industry has been about software solutions to keep lenders and brokers in business, not necessarily advancing in technology.  However, our economy is finally getting a break and it's only a matter of time before businesses come out of the recession and jump back on their feet.  The stability in the market will then bring the focus back to technology.

Mark Lofthouse, CEO of mortgage technology solutions provider, Mortgage Brain, offers his insight on mortgage technology by stating that, "over the past few months, more and more brokers and lenders are starting to look at technology in a whole new light." This gets businesses asking the question of "What technology must I have to stay compliant and also keep my business growing?" or "What can I adopt or create to make my business work better, more efficient, and more profitable?"

With that in mind, Lofthouse, offers his top five technology predictions for 2013.

1. The Rise of the iPad

By the end of the 2013 he predicts that between a quarter and half of tech savvy mortgage brokers will have purchased an iPad for business use and will be using it as part of their mortgage advice and sales process.

The use of an iPad for business has become increasingly popular among restaurants, convenient stores, and the healthcare industry.  It's not a surprise that the mortgage and financial industry want to take advantage of it's perks, too.

2. Why No Website?

Lofthouse suggests that while many brokers are forging ahead an astonishingly large number still seem to be living in the technological dark ages and haven't got a website or any online presence at all.

It's not doubt that with the change to new media styles, all business in all industries will be forced to have an online presence and adapt to changes in ecommerce.  Lofthouse also predicts that by the end of 2013 one in three brokers will still be without a website - unbelievable.

3. Going Mobile....

The seemingly inexorable rise of apps has led to increasing numbers of existing software systems becoming mobile and he expects to see a major shift towards online systems via the use of tablets and html solutions during 2013.

The advantages are obvious; brokers can respond quickly and efficiently whether they are in or out of the office, giving customers a much higher level of service.

4. Consumers In The Driving Seat

Traditionally, financial advice was a face to face process from beginning to end. And while a broker's expertise can and never will be replaced when it comes to working out the finer details, consumers are increasingly undertaking much of the initial research themselves.

Whether it's finding a broker or taking their first steps in the mortgage market, for consumers, today it's the internet and tomorrow it will be the internet, mobile devices and tablets.

This isn't a great surprise. Consumers have been driving technological advances in other areas of life for years and the mortgage industry is just catching up. If brokers don't evolve alongside customer requirements over the next 12 months, they'll soon get left behind.

5) Point-of-sale adoption for lenders

The introduction of the MMR will bring about a number of substantial changes in the way that lenders can discuss the mortgage needs of their customers. To remain compliant and transparent lenders now have to treat customers in a similar way to that offered by brokers for years and give advice and ensure that everything is logged and can be audited.

As such the mortgage market will see the results of lenders reviewing their point-of-sale and compliance systems during 2013 should they wish to give advice. Aldermore, for example, was recently announced as becoming the first lender to adopt our new Lender Retail point-of-sale solution, and more are due to be announced shortly.

So, will these predictions prove accurate? We'll find out as the year progresses.

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