In the current mortgage tech race, some lenders have rapidly accelerated, viewing the opportunities presented by new technologies as a green light to streamline operations, enhance client experiences, and drive business growth in an increasingly competitive market.
Others have hesitated, cruising through on amber but without sufficiently shifting gears to challenge the leaders of the pack. Meanwhile, some have stalled and are now stuck at red. For those still idling, this signals a critical warning: without embracing technological innovation, they risk falling irreversibly behind. After all, technology adoption is no longer optional, it is essential for survival.
Many lenders continue to be hindered by outdated systems that fail to meet the speed and efficiency demands of modern consumers. These legacy platforms create bottlenecks, slowing down processes from application to approval, placing them at a significant competitive disadvantage. For those lagging behind, this red light should serve as a wake-up call to embrace change before it’s too late.
When developing a mortgage originations system that meets the demands of today’s borrowers, I understand there are often legacy issues to address, and the mortgage industry’s complexity cannot be ignored. But is some of this complexity a result of its own historic tech failings? Perhaps that’s a longer discussion for another time.
While not every lender can lead a technological revolution, many are showing a strong desire to be ‘fast followers’—quickly adopting innovations and enhancements to stay competitive. This shift is becoming increasingly evident as the need for more efficient, faster, and consistent processing and servicing gains widespread recognition.
As Elon Musk once said, “Take risks now and do something bold. You won’t regret it.” The pace of technological change, particularly with advancements in AI, is accelerating, and those who fail to adapt risk more than just slower growth.
From an intermediary perspective, for those who primarily rely on a handful of major lenders, the future could be uncertain. Big lenders may shift towards direct dealings with customers for product transfers and remortgages, simplifying processes, reducing staff, and cutting out intermediaries. This not only trims acquisition costs but could result in lenders passing those savings to borrowers or keeping wider margins.
This means that all intermediary firms must be adaptable in their tech approach and work with systems which open the doors to all avenues across the mortgage market, including niche products and specialist lenders, where they can really add value. This is where working with platforms with an array of lender integrations such as OMS can really pay dividend.
For example, we can provide access to a wide range of APIs that connect advisers to the best offerings in the market. With everything available under one roof, this allows brokers to remain agile, efficient, and competitive in this rapidly evolving landscape.
Technology has the potential to do much more to streamline processes. When you consider how other industries have embraced technology and disrupted traditional practices, the mortgage industry has been slower to adapt. However, the opportunities for lenders and intermediaries to catch up and hit more green lights than red ones are growing every day.
And the Great Mortgage Tech Race is well and truly on.
