Digital collaboration solutions can help streamline many banking processes, from customer service to product development. The potential benefits of using these solutions increase with the frequency of communication, the complexity of information, and the number of process decision points. Using a digital collaboration platform can improve communication and coordination between departments. It can also reduce the need for face-to-face meetings and speed up decision-making.
In addition, digital collaboration solutions can help banks better understand customer needs. This understanding can help them develop more targeted products and services. By leveraging the power of digital collaboration, banks can gain a competitive edge and drive more efficient and effective operations.
Mortgage origination is a complex processes with many manual touch-points. As a result, there are many opportunities for processes to go awry. However, this is ripe for digital transformation. Technology transformation can unlock substantial gains in productivity and cost savings. For example, a digitized mortgage origination process could automate critical steps such as document collection and verification.
With current technologies and processes, the traditional US mortgage process takes roughly 46 days to complete with over 30 touch points and interactions. It costs the originating bank about $2,000 to $2,500 per loan. At a high level, mortgage origination comprises five steps: initial consideration, application, processing, underwriting, and closing. It typically involves loan officers, sales assistants, processors, underwriters, quality assurance and control, and closers.
Traditional methods involve old-school exchanges of information. They involve long wait times and frequent back-and-forth and corrections. Technology can eliminate these shortcomings and lower costs. By reducing delays and repeated contacts, it can substantially improve customer experience. A streamlined origination process can be a significant competitive advantage for any mortgage lender.
A digital mortgage process
The adoption of collaboration technologies by mortgage providers will likely lead to significant improvements. Borrowers can connect with their mortgage providers through an integrated portal. This portal can enable seamless communication and collaboration between customers and the bank.
It will also allow for a more efficient exchange of information and tasks. This exchange results in a faster and more efficient mortgage process. In addition, originators will be able to manage their workflow better and prioritize tasks, leading to improved productivity and performance. The portal will provide a centralized location for all mortgage team stakeholders to access information and interact with one another. This centralized access will streamline communications through multiple channels, such as phone calls, e-mails, posts, or in-person interactions.
The portal will also include features such as a dashboard that prompts action only on those loans that need it. It also includes a daily file prioritization focusing on the most critical loans. Additionally, it can generate notifications that flag missing or recently submitted information and highlight urgent actions. By providing this level of accessibility and transparency, the portal can improve the efficiency and quality of the mortgage process.
The customer experience is of utmost importance, and these new tools will enhance the borrower’s experience. Chatbots can answer common questions quickly and easily. Videos provide step-by-step instructions on how to complete their applications. Interactive calculators can estimate monthly payments and compare different loan options. Self-serve tools for uploading documents and confirming progress will save borrowers time and frustration. And finally, continuous updates and push notifications to ensure that borrowers are current on the status of their applications. All these enhancements lead to a more efficient and hassle-free application process for everyone involved.
As an application moves toward closing, the collaboration platform can help assist the closer through a set of standard action items. These actions include the standard creation of closing disclosures, an e-signature, a virtual closing room for borrowers, and a welcome process. A defined and standardized process built on one set of tactical steps will reduce variability in routines across the operations staff and accelerate the process. The platform will also provide real-time visibility into where an application is within the closing process at any given time. This visibility will help identify potential bottlenecks and areas of improvement. In addition, the platform can generate reports to measure operational performance and effectiveness. As a result, using a collaboration platform can ultimately streamline the closing process and improve operational efficiency.
Increased collaboration among internal stakeholders and borrowers is essential to improve the customer experience, operational efficiency, and transparency. A reimagined mortgage origination journey will enable cost and time savings, including reducing costs per loan by 10 percent, shortening loan processing time by 15 to 40 percent, and reducing the frequency of underwriting touches per application by 15 to 40 percent.
In addition, this approach will allow for more seamless communication and a better overall experience for all involved. As the mortgage industry continues to evolve, we must embrace new ways of doing things that will benefit everyone involved.