Over the next several weeks, our financial services team will be sharing observations on the current state of the mortgage industry, as well as trends we see gaining traction in future months and years. We’re calling this series Mortgage Matters, and it will feature insight on technology road-mapping, reducing loan origination costs, improving customer satisfaction, navigating the fluctuating regulatory environment, and retaining top talent.
In 1960, Harvard Business School professor Theodore Levitt published “Marketing Myopia,” an analysis and critique of American industry that caused a stir in the business world. Levitt’s argument stated that growth industries do not exist. Instead, he argued, there are only companies organized and operated to exploit market opportunities.
The mortgage industry is at a critical inflection point which, similar to Levitt’s analysis of the business environment in 1960, presents an opportunity for businesses that are properly “organized and operated.”
The opportunity exists for mortgage companies that are well-focused and that can filter out market noise to reveal the signals being broadcast. Lenders that ignore those signals face a greater risk of losing market share in an already competitive environment.
The jury is still out on the buzziest of the buzzy emerging technologies: artificial intelligence, blockchain, and the like. That said, we are confident that data analysis and data management will be the differentiating strategies in the mortgage industry for the foreseeable future.
Rising above the rest
The most successful mortgage companies will be able to use data and technology to:
- Lower the cost of originating a loan
- Create a great user experience
- Master regulatory change management
- Solve the loan officer talent problem
The way you create a great data strategy is to align your business goals with your technology investments. In other words, don’t invest in tech solutions that don’t align with your business strategy.
So, how do you determine which tech options will align with your business goals? That’s a question to ask the team at Saxony Partners. We’re the only management and digital consulting firm that combines deep experience in the mortgage industry with similarly deep experience in data management technologies.
Saxony Partners’ financial services team works with mortgage companies and services large and small, advising them on how to navigate rising interest rates, decreasing loan volumes, evolving regulations, and the never-ending need to differentiate from competitors.
Our goal is to help our clients do more with their data by turning it into a competitive advantage. Nowhere is this need more acute than in the mortgage industry, where data utilization will be the most pivotal factor in determining a firm’s future viability.
- Loan Origination Costs
- Customer Experience in the Age of Amazon, Netflix
- The Regulatory Change Environment
- Talent acquisition and attrition