Pricing exceptions are widespread in mortgage — and so are the regulatory risks

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As far as tech innovation goes, hereÕ where the industryÕ headed

Short-term and long-term

Innovation is the new buzzword for the mortgage industry, replacing TRID, which instigated a less enthusiastic response.  

At the Mortgage Bankers Association’s annual convention and expo in Boston late last month, the industry showed it moved beyond the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosure rule to its new focus, innovation.

For where this tech innovation is headed, Kelly Adkisson, managing director for Accenture's Credit Consulting Practice in North America, said in a follow-up interview that she sees two categories of innovation unfolding in parallel: efficiency and customer experience, both of which tie to customer acquisition and retention. 

“The relationship between efficiency and customer experience is synergetic, each driving investment dollars to move the other forward,” she said.

To start, Adkisson said, “Lenders’ short-term priority needs to be developing innovative customer acquisition strategies to maintain and grow market share, as well as improve efficiency to combat a sustained low interest rate environment.  Longer term, tactics will include full integration of both customer acquisition and retention technologies, marrying automation with best-in-class digital solutions, including customer capture and origination platforms.”

Accenture’s 2016 North America Consumer Digital Banking Survey found that while the digital transformation in mortgage is well underway, the push to develop personalized customer experiences still dominates the consumer wish list.

For example, Adkisson cited that more than 40% of consumers surveyed said they would stay loyal to their primary bank if it offered discounts on purchases of interest, help in the car and home buying process and provide more personalized service.

With Millennials entering the home-buying market and workforce at an increasing rate, lenders must invest in technology on two fronts, she noted.  

First, lenders need to deliver experiences to Millennial customers that are convenient, relevant and seamless.

Second, as the industry’s workforce ages, lenders must create stimulating work environments to entice Millennials who are seeking employment.

“Lenders who succeed in creating seamless omni-channel experiences will reap the benefits, and those who don’t risk being left behind,” said Adkisson.

While TRID is no longer at the forefront of the conversation, it doesn’t mean it’s gone. The industry simply has a better handle on regulation.

“Accenture recognizes that although regulatory compliance will continue to be a challenge, lenders need to refocus on becoming more digital and customer centered,” said Adkisson. “We believe lenders will need to seek out solutions that ensure long-term sustainability and efficiency so they can work on defining their digital roadmap."

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