Whether it’s the independent local bookstore against the big-box corporate chain that just moved in down the block or a community bank competing with a global financial institution, it’s easy to assume the smaller entity is at a disadvantage. And while that may be true in some cases, the solution is easier than it seems. Tapping into technology in a strategic and focused way can help smaller financial institutions (FIs) compete within the mortgage business against larger national lenders and global fintechs to level the playing field.
From modern point-of-sale (POS) systems that streamline online applications to automation that accelerates the processes of origination and closing, technology can position smaller FIs to compete and thrive in the digital age. What follows are five factors for decision makers at small and mid-sized financial institutions to consider as part of their digital transformation efforts.
Customer-Centric Applications
In light of consumers’ growing demand for self-service options, online mortgage applications are more crucial than ever. But application interfaces that are slow, or that do not make it easy for customers to quickly find the information they need, can create friction and frustration. This may drive customers toward digital-focused lenders that offer a better user experience.
FIs should invest in a sophisticated POS interface that caters to customers with a wide variety of needs and preferences. Mortgage lending solutions that allow customers to explore rates, fees and products, complete an application in minutes, and secure approval instantly can help give smaller FIs the edge they need to compete against lending giants.
End-to-End Automation
Customers aren’t just looking for a quick and easy application process. In order to compete against larger FIs and online lenders, smaller institutions need to deliver rapid pre-approvals and faster closings. The key to accelerating the origination sequence is end-to-end automation, which
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