Lenders and mortgage operators need to harness technology to improve efficiency, and as a result, boost productivity and profitability.
This is according to Roger Warner, lead consultant at Compass Management Consulting SA, who explains that the mortgage industry in SA is burdened with a lot of inefficient paper-based processes, which often lead to duplicated effort.
“Overseas, the trend has been to invest in technology to capture front office information electronically, which is then sent to the back office in this format; a far more efficient end-to-end
process,” explains Warner.
He points out that improved processes mean less duplication, so turnaround times can be greatly reduced; which in turn improves the cost effectiveness of lending operations.
“From a customer perspective, improved efficiency, in turn, improves customer satisfaction, as the lenders are more likely to ask the right information and get the process right the first time.”
Warner says mortgage operators need to conduct a detailed baseline analysis to identify opportunities and also to measure progress and performance over time. “A baseline will also help to identify root causes for cost efficiency failures,” he adds.
According to Warner, technology can help solve the problem of information captured inaccurately, as well as cutting down on paperwork and duplication.
“Having a front-end system with proper validation in the form of mandatory fields that must be completed will ensure quality control and reduce the number of applications that cannot be processed.”
Warner adds that imaging software can cut down on the amount of paper-based processes, application tracking systems, and enable customers to access information faster.
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