How Emerging Technologies are Disrupting the Mortgage Industry

The world’s mortgage industry is being disrupted. Not by volatile markets or financial concerns, but rather by emerging technologies and the potential they hold. Old ways of doing things are being pushed aside as tech such as AI, blockchain and increased Internet adoption is moving in. The influence of technology has changed the way customers acquire information, decide on deals, and purchase products. Here’s how.

Artificial Intelligence

Artificial Intelligence, or AI, has infiltrated many aspects of day-to-day life. But the mortgage industry is one where it is set to make some serious wave. AI is taking over a number of previously manual processes such as onboarding customers, conducting due diligence and KYC, and assessing suitability. It also has the ability to process applications in a quicker, more accurate, and more efficient way – cutting costs for the provider, and speeding things up for the customer. This technology is also valuable for providing ongoing customer service, answering FAQs and even sending out reminders and notifications.

The Internet

This might sound obvious, but increased adoption of the Internet and mobile devices has turned the mortgage industry on its head. Customers are now able to apply for a mortgage or remortgage online with the swipe of a thumb. Services such as Trussle have increased access to deals and offers, giving individuals can access mortgage advisors with a 15-minute sign-up process. Sites of this kind this provide valuable information and comparison services, all in one place, saving time, energy and stress levels.

The industry has become 24/7 and prospective homeowners or those wishing to remortgage no longer have to call or visit in person to find out more. Applications can be completed and submitted online, questions can be asked via webchat or chatbots, and the entire process is quicker and easier than before.

Blockchain and Smart Contracts

The use of blockchain-based systems in the mortgage lending system can significantly help to reduce operational costs, fees, and fraud. Blockchain is a distributed ledger that is completely immutable and once an entry is made, it cannot be removed or changed. All steps of the mortgage or remortgage application can be logged on the blockchain, as can payments and communications.

Smart contracts operate on the blockchain and are self-executing. They are able to facilitate, authorise and verify a number of actions, triggering the next action once the previous one is complete. This can be incredibly useful in the application and approval process, saving a lot of time and manual work. When each action has been completed, they are recorded and stored on the blockchain and cannot be reversed.

Big Data

Big data has the power to make sense of huge amounts of data and information, crunching it into easily digestible and actionable pieces. In the mortgage industry, it has the ability to mine information from social media, news, and customer records. It can use this information to predict market trends and to provide valuable insights into variables that can impact interest rates, demand and more.

It can also be used to provide detailed background on potential customers – harvesting data that was previously unreachable. The technology can also be used in risk and regulatory reporting, the identification of cross-selling opportunities, and the prevention of fraud.

These are some of the most disruptive bits of technology. If you’re looking for a mortgage or to remortgage in the near future, it’s likely you’ll bump into some of these along the way.