Banking Recovery And The Role Of Technology: It Did Happen
Over the years, the mortgage industry in the US has been one of the traditional powerhouses and generally been up there with the top contributors to the economy. This may have been on the easier side to achieve pre-financial crisis as compared to getting back on track post the crisis.
That is where technology played a huge role in helping an industry which was probably the hardest hit. There were so many companies that lost portions if not their entire business and shut shop altogether. For the ones that managed to survive, they realized that their modus operandi would need to change as it was essential for their survival.
What ensued in IT
Various advances in mortgage software seemed to be the one-stop solution for a majority of the problems. This led to several changes in methods in which companies were previously dealing with their clients over mortgage issues. While the big players continued with their traditional methods, several smaller players took advantage of the innovations in technology to add innovation to the ways in which they would be dealing with their mortgage offers from now on.
Smaller players started offering mortgages online and in the process managed to carve a niche for themselves and capture their own share of the market.
While people were looking at just the advantages of advances in technology, they quite undermined the importance of product. The fact that demographics was changing, not just in terms of just capability to handle new technology, but in terms of spending power, was overlooked. The millennials were the ones in the driver’s seat now. While the demographics may seem to be evenly split, the gap between Gen X (the immediate previous big spenders) and the millennials are significant enough to see a rise in the spending capacity in terms of mortgages.
The fact that the millennials grew up during the same time there were so many changes in technology, also helped them to associate themselves with these changes in real time. So now, instead of waiting in long queues to get to see an agent regarding a mortgage, people can do it all through a couple of flips on their smartphones and tablets.
There is access to aspects like rates, plans and details that people might need in an instant. Not only did this save a lot of time, it also saved a lot of money for all the stakeholders involved.
Some of the firms even went one step further when it came to using technologies. The firms realized that just how two people are never the same, the wants for their mortgages could never be the same.
Technology made them get a first-mover advantage, as they started offering personalized and customized loans to their customers. This was a concept that had never been seen before and was accepted rather wholeheartedly by most people. After all, who would not like to get a mortgage on terms that were completely their own.
As a by-product…
The chances of defaults shrunk. Now that people had chosen terms and conditions as per their own preferences, there would be no reason why they would not be able to repay their housing loans on time. This seemed to be a win-win situation for all parties involved.
It is not only the capabilities of the staff at the mortgage companies but also the capabilities of the technologies used at those companies that attract and keep customers. Being the pioneers in introducing new technology will always help expand a client base, as customers are always reaching for that something extra.