SaaS to Improve Processes and End-Customer Experience
BofA Securities has predicted $190 billion of gross residential mortgage-backed securities insurance this year, just under the $202 billion reported for 2021. A large part of the reasoning behind this number not falling substantially further is due to a predicted rise in non-QM lending. The non-QM and government lending market got off to a slower start than expected but expert opinion is beginning to again anticipate an influx throughout the rest of the year. As these outside-the-box origination types require an increased investment of time, staff, and expertise, their looming proliferation should encourage you to look for any operational efficiencies you can find to free up time and simplify workflows. This effort starts with analyzing your systems and processes and looking for bottlenecks, information silos that could be better integrated, repeated efforts, departmental misunderstandings of the greater organizational goals or other potential business-structure-related maladies but should also include consideration of the many digital lending tools currently available on the market.
Predictions of high rates and low volumes on the horizon have done nothing to slow the development of the SaaS Mortgage Software market which has been experiencing accelerating growth at a CAGR of almost 12%. A still very fragmented market structure will heavily incentivize further product development. The total SaaS software market is expected to exceed $305 Billion by 2026, so funding for further advancement will certainly be abundant in the near future. What this all means to you is that you should be keeping an eye out for any new or soon-to-be released software products that might be able to solve your mortgage operation’s pain points at a lower cost than previously possible. The Software as a Service (SaaS) model can be particularly advantageous to banks, whose legacy software often does not work inherently with other systems. With a successful Software as a Service partnership in place, a bank’s end-customer experience can be continually improved as new technological opportunities arise and consumer expectations evolve. These systems can also be much easier to integrate with the rest of your tech stack which will maximize your available data, opening up new opportunities for cross selling across your institution’s full array of products, and many more productive applications.
As always, Spillane Consulting Associates is available to help your organization streamline operations and identify and implement the best tools and software, or even outsource some pieces of your process. To schedule a free consultation, please contact Bill Dolan, Director, at (617) 694-2617.
