As anyone who has hailed a cab, booked an airline ticket or purchased goods online can attest, technology has the ability to transform established industries, seemingly overnight. Yet other industries appear immune to the impact of technology, with customer experiences that appear frozen in time.
Heading this dubious short list would be the healthcare and mortgage industries, which bear interesting similarities. Both represent a significant share of the economy, impact a majority of the population and feature a customer experience that is ripe for change. So why isn’t it happening more quickly?
Some would point to the complexity of each industry’s “delivery system.” In the case of healthcare, coordinating the activities of employers, government agencies, insurers, providers and life science companies, each with their own processes, is clearly challenging. In reality, it is likely the approach to change that is to blame for the slow pace of innovation. In each industry, early efforts to “reinvent the wheel” typically involved a single player seeking to develop and deliver a revised end-to-end process, with technology a key enabler. Unfortunately, these early efforts ultimately collapsed under their own weight, given the required cross-industry expertise and investment.
This end-to-end approach was quickly followed by the emergence of specialized point solutions, each aimed at a specific component of the industry value chain. In healthcare, this took the form of patient engagement apps and in mortgage, the borrower mortgage application experience. While promising on their own merits, addressing only one component of the issue does not solve the larger problem. It still takes an average 40+ days to close a mortgage.
Fortunately, a “third way” has emerged.
In healthcare, firms such as Change Healthcare are integrating their own best-in-class point solutions, such as secure transaction processing, with those of their partners to create a seamless, end-to-end process and a superior customer experience. Within the mortgage space, Capsilon is adopting a similar approach, investing to integrate best-in-class partner solutions, such as Optimal Blue’s pipeline and rate lock management APIs, with its own. Here the integration of Optimal Blue’s rich feature set with Capsilon’s loan officer portal enables loan officers to perform more of their day-to-day tasks within the intuitive and user-friendly Capsilon platform. The net effect? Loan officers are able to run real-time pricing and loan scenarios, and can instantly lock rates, making it possible to complete an application and issue a pre-approval in half the time, delighting borrowers and real estate agents alike.
The “moral of the story?”
Those who are willing to collaborate with and leverage the expertise of partners, while investing the time and effort necessary to create a seamless, integrated solution, will be successful. Like-minded technology leaders will ultimately provide tremendous value to the borrower and drive the mortgage industry forward.
In such a collaborative environment, we all win.
About The Author
With more than 17 years as Capsilon’s Founder and CEO, Sanjeev Malaney has proven himself as a visionary, a pioneer and a leader when it comes to the quest for bringing to market the true end-to-end digital mortgage. Capsilon has transformed the traditional mortgage process, enabling enterprise lenders to deliver a better borrower experience, help loan officers close loans up to five times faster and lower overall production costs by as much as 50%, by reducing massive staffing expenses that lenders ultimately have to pass on to the borrower.