Fight It Out


Many have been dismayed by the level of consolidation in the loan origination space. What will it mean that there are fewer LOS players? Will innovation slow? In my view, it just means that we’ll have larger, more professional companies battling it out even more fiercely.

This is actually not uncommon. A great article in CNN Money profiled a similar battle that we are now seeing between Microsoft and Apple. They put it this way:

“Three Microsoft commercials, which are meant to evoke Apple’s famous Mac vs. PC spots from a decade ago, compare Microsoft’s Surface Pro 3 tablet to the MacBook.

“In each of the ads, the MacBook owner is amazed at how the Surface is as powerful, fast and capable as the Mac, while having tablet-like features, including a touchscreen.

“This isn’t the first time Microsoft tried to give Apple a taste of its own medicine.

“Earlier this year, Microsoft launched a similar commercial poking fun at Siri. The ad showed a person asking Microsoft’s “personal assistant” app Cortana to do tasks like set location-based reminders. Siri quipped, “Now, that is a smart phone.”

“After Windows 8 launched in 2012, Microsoft showed side-by-side comparisons of the iPad and a Windows 8 tablet. After seeing all the things the Windows tablet could do that the iPad couldn’t, an exasperated Siri wondered, “Should we just play Chopsticks?”

“When Windows 7 debuted in 2009, Microsoft ran commercials of people proudly saying, “I’m a PC.”

“Still, even if Microsoft is winning the clever commercial battle, its products haven’t made a dent in the MacBook, iPad and iPhone sales.”

So, why do I bring this up? I bring it up to get all of you reading this to understand that just because there has been a lot of consolidation, that doesn’t mean that competition and innovation are dead. Major companies can be challenged and taken down. Now is the time for all companies, regardless of their size or market share, to innovate and help lenders move forward and prosper. In the end, those companies that can help their lender clients achieve prosperity will be tomorrow’s mortgage technology leaders.

About The Author