2020 served as a real litmus test for mortgage technology and fintech. Between having to transition whole teams to work from home — in some cases over just a weekend — to dealing with crushing origination volume, companies could clearly see the advantages or disadvantages of the technology they had invested in.
For 2021, I talked with Scott Petronis, principal of Xcentric Consulting and one of the architects of HousingWire’s HousingStack ecosystem, about three areas of fintech he’s keeping an eye on in the new year.
End-to-end tech vs disparate tech solutions
The age-old dilemma of build versus buy has morphed a bit in the last few years, as even companies who do a prodigious amount of in-house development are seeing a need to integrate some outside solutions. Today the conversation is more about whether to choose an all-in-one solution or piece together separate best-in-class solutions.
Petronis said that there’s no right answer on this question, it’s just a matter of where a company wants to deploy its resources.
“My bias on this topic is to try to build a system out of individual best-in-breed solutions, as opposed to relying on a single vendor to run your business,” Petronis said. “But that advice has caveats. Integrating those best-in-breed solutions typically means you have to be able to do some level of integration yourself, so it’s typically more effort. You have to figure out what best means, identify the best vendors and have the capability to do those evaluations.
“Once you layer on the regulatory constraints, you really need an in-house team capable of doing that, or a trusted partner/consultant. It can be daunting if you don’t have the resources, time and skillset.