The most recent trends in mortgage technology for 2024.

In order to accomplish more with less, today’s mortgage enterprises need primarily rely on technology. Mortgage market participants must quickly adapt technology to stay competitive in light of the US Federal Reserve raising interest rates and borrowing costs, banks withdrawing from mortgage servicing, and 49% of homebuyers preferring self-service portals, according to ICE Mortgage Technology. Ninety percent of respondents to the Borrower and Lender Insights poll said that digital mortgage technology is essential for a satisfying customer experience, and seventy percent said that utilizing mortgage lending technologies significantly shortens the loan closing process. Since the majority of consumers prefer to apply for loans online, lending organizations must use mortgage technologies that enable them to meet this client desire and outperform their rivals.

Since Django Stars has a lot of expertise developing custom software for digital mortgages, we can attest to this firsthand. We provide a range of software solutions for fintech organizations, from mortgage calculators and KYC verification features to developing B2B interfaces and property evaluation tools. In our fintech portfolio, we have case studies from Molo, Sindeo, MoneyPark, and Lendage, among others.

For this reason, we would like to discuss our predictions for the key trends in the mortgage business in 2024. Mortgage firms can make well-informed decisions regarding their fintech product updates by having a thorough understanding of each of their impacts and values.

Forecasts and Size of the Digital Mortgage Software Market

The UK’s Financial Conduct Authority reports that by the end of 2023, the value of all residential mortgages amounted to £1,654.3 billion, with new mortgage commitments of £51.5 billion, the industry in the UK is growing at the fastest pace since 2007. Despite the war-induced energy crisis and other factors (like the Bank of England increasing the interest rates), people still need places to live, and property ownership can become one of the drivers of post-COVID recovery. The global market for digital lending platforms reached a value of $5.84 billion in 2021. And it’s expected to grow by 25.9% annually until 2030. This growth is underpinned by various mortgage tech trends as digital technology provides multiple benefits: from streamlined loan origination and informed decision-making to greater compliance and enhanced operational efficiency. Specifically, mortgage industry trends like open banking and blockchain are creating new opportunities that further expand the market for digital lending.

Some trends in mortgage technologies have been around for quite some time — like blockchain, cloud computing, and big data analytics. Other trends, like open APIs or NFTs, are just picking up the pace. However, being informed about them is essential to forecast the future of the mortgage industry and know the right time to integrate technological advancements into mortgage workflows.

Trends in Mortgage Technology to Monitor

Digital mortgage technology is revitalizing a sector that was previously mostly dependent on antiquated infrastructure. Data exchange used to be problematic since mortgage lending operators built internal procedures into isolated infrastructure islands. But in order to deliver a consistent and satisfying user experience, current technologies require seamless data transport.

These are the top mortgage sector trends that are reshaping the tech landscape.

IDAs and Conversational Chatbots

One of the biggest developments in the mortgage sector for 2024 is conversational chatbots. This technology understands and responds to inquiries like a human using natural language processing, or NLP. Chatbots played a major role in helping businesses save money on customer service in 2023. Chatbots have reduced customer support expenses for firms by up to 30% across a range of industries. With a projected revenue of about $137.6 million, the chatbot industry will yield significant financial gains in 2023 when it comes to human resources efficiency.

In order to engage potential borrowers, these bots mimic human interactions, provide thoughtful answers to questions, and route inquiries to the appropriate agents. But not every chatbot can handle today’s demands. Because these machines were built on a basic rule-based basis, people can always tell when a machine is just selecting options that have already been setup. Rather, they anticipate having a deep conversation with an intelligent digital assistant (IDA). At that point, sophisticated AI models like ChatGPT are useful. AI-based IDAs may genuinely build and maintain relationships with clients because of their conversational nature, which advises users rather than just fixing specific problems. Following conversational AI trends is crucial to realizing AI’s full potential in improving consumer experience and engagement.

Elle, a website chatbot that can assist clients around-the-clock, was recently introduced by Chicago-based real estate company Berkshire Hathaway HomeServices. It is designed to learn what customers want and keep track of discussions so they can pick up where they left off. This invention reaffirms BHHS Chicago’s dedication to improving the client experience in the mortgage sector through technology. We provide AI-based chatbot and virtual assistant development services in support of this trend for our clients’ fintech solutions.

Automated Robotic Process (RPA)

Robots are delegated tasks to carry out rule-based processes by means of RPA technology. This technology remains in the enterprise-wide repetitive workflows because it is perfect for automating time-consuming and repetitive operations including uploading files, entering application data into the system, and auditing loan paperwork.

Underwriters now have more time and bandwidth to offer value-adding services since RPA takes care of time-consuming duties. According to a Deloitte report, RPA implementation takes less than a year to break even. Additional advantages consist of:

  • 92% increased adherence
  • 90% increase in accuracy and quality
  • 86% increase in output
  • 59% cost savings

Grand View Research estimates that the worldwide RPA market for banking and finance will reach approximately $860.75 million by 2023. Large banks have embraced the technology, like Axis Bank and Deutsche Bank, and the largest banks in Japan are using RPA solutions to save personnel and operating expenses.

Cloud-Based Software

The Pay As You Go paradigm of cloud computing ensures scalability, security, and the best possible resource allocation. Major cloud platforms also particularly customize their offerings to fit the needs of the finance industry. Microsoft Cloud for Financial Services offers to assist in risk management, employee empowerment, and profitability acceleration.

Major lending companies like the Virgin Money UK and Navy Federal Credit Union have been quick to give Microsoft’s newly released industry-focused cloud platform a try, and the fintech industry is sure to follow suit. The fintech cloud market is expected to reach over $196 billion globally by 2031, according to PR Newswire research. This data is supported by Django Stars’ experience, as cloud and DevOps are among our most popular services.

Large-scale data and analyticsa

Lenders utilize data analytics to build comprehensive customer profiles that encompass their customers’ payment histories, activities, and backgrounds. Financial institutions are able to make customer-focused decisions and offer individualized services because to these profiles. For instance, TrustEngine uses big data and AI to automate client profile checks for mortgages whenever there is an equity, credit score update, mortgage inquiry, etc.

ICICI Bank, a leading Indian private lender, relies on its digital infrastructure to future-proof the business. Real-time data analytics is an important ingredient of their IT architecture, which is shifting its focus from products to customers.

NFTs and Blockchain

By tokenizing the mortgage loan, Brightvine is one example of a company using blockchain to revolutionize the mortgage loan processing industry. By tokenizing the mortgage loan, they’re increasing the asset’s liquidity and lowering the costs for borrowers. Another benefit of NFT-based digital mortgages is that lenders and borrowers can store lien information and borrower data on the blockchain. Additionally, because NFTs are non-fungible, buyers can own digital assets that cannot be replicated, giving them added protection against fraudulent transactions.

Document Management Software

Document-intensive processes are involved in loan approval and verification checks. Document management software gives mortgage companies a safe place to store their files, edit documents, organize them, and utilise imaging solutions. Companies can digitise documents through imaging conversion, file them in organised folders using indexing, and retrieve specific data instantly using metadata. The recent data breach at KeyBank, a regional bank in Ohio, emphasised the importance of using reliable document management software that has data encryption, audit trails, and access control. As a provider of digital mortgage technology development, we wholeheartedly support this focus on security aspects of document management features.

Enhancements to Self-Service

Knowledge bases and customer support sections rank among Django Stars’ most visited website sections, according to data collected from their clientele. According to studies, 73% of consumers would like to solve problems on their own rather than wait for an agent. When PNC Bank, a well-known US financial institution, partnered with Blend, a provider of cloud banking software, to implement an online mortgage application process from start to finish, it demonstrated that it was ahead of its time. Fully digital mortgages are crucial to the future of the mortgage sector, according to Django Stars, since 43% of mortgage borrowers don’t mind completing loan applications through self-service portals.

Adoption of APIs

Software solutions with API support let lending organizations add different features to their mortgage site. Integrating formerly isolated systems improves customer experience and increases operational efficiency. These enhancements aid in raising revenue, freeing up resources for the business, and facilitating the entry of new mortgage markets. The mortgage sector frequently uses application processing, digital identity, open banking (sharing data between banks), and loan pre-qualification APIs.

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