In the digital age, providing customers with a frictionless mortgage experience is critical to remaining competitive. However, delivering these experiences in an environment of increased regulatory scrutiny has become a fundamental challenge for all lenders.

The rapid pace of new technology, the introduction of neobanks and the availability of new data via open banking means lenders need to adapt faster than ever before. Here are five ways digital mortgages can help businesses in the mortgage industry stay relevant and embrace innovation in the years ahead.

1. Adapting to change

Digital mortgages are fully configurable and dynamic, allowing lenders to adapt to changing market forces, regulatory obligations and risk policies over time. As a preconfigured starter solution, they’re also easy to implement and can minimise the short-term pain of introducing new technology to the business. This allows you to meet the changing needs of your customers without changing your workflows or processes.

2. Improving operational efficiency

The sheer amount of paperwork involved in the mortgage application journey is at odds with the ever-growing amount of digital data inputs required to complete tasks such as verifying income and expenses. Digital mortgages provide an automated and streamlined process that can maximise operational efficiency while maintaining full compliance with your regulatory obligations.

3. Providing a positive experience

As customers become more comfortable with technology (particularly banking) they expect a fast, seamless and positive experience that will keep them engaged long after their application is approved. Supporting a frictionless experience for customers means making faster decisions (often in real time) and streamlining the mortgage process.  This needs to be balanced by an accurate credit assessment that draws on a range of data elements to support decision making.

Digital mortgages can reduce the time to approve, refer or decline a new customer from 1-2 weeks down to a couple of hours, while providing an interactive and personalised experience.

4. Maintaining responsible lending standards

The Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry has placed a greater focus on responsible lending, with the aim of avoiding situations where customers borrow beyond their means, saddling them with a debt they won’t be able to repay. With a digital mortgage solution, lenders can enjoy peace of mind knowing they have an auditable process that helps facilitate responsible lending decisions.

5. Driving sustainable growth

The introduction of open banking will provide lenders with easier access to more data and a better understanding of their customers, but it will also drive competition within the financial services sector and empower customers to choose financial products that are tailored to their needs.

Innovations like digital mortgage solutions will provide lenders with the technology they need to adapt quickly, drive growth and improve decision making in real time, particularly as more disruptors enter the market. This can help increase efficiencies, reduce costs and make lenders more competitive and relevant in the market.

The digitisation of the mortgage application journey has the potential to be a win-win for lenders and customers alike. We are excited to help lenders realise the power of digital mortgages and reap the benefits of innovation in the mortgage industry.

Find out more

Email us to find out how Equifax can help you create a faster application process for your customers.

Risk Solutions

Shift your perspective to drive more effective risk management and credit decisions through data-driven analytics.