Results of a recent mortgage industry survey confirmed what most of us already know. That the digital transformation is well underway and this was further accelerated by the pandemic.
The survey, conducted by ICE showed that the pandemic resulted in consumers shifting towards a preference for digital finance and mortgage products. This was partly driven by an increase in sales activity due to low interest rates and various fiscal incentives created by governments to stimulate the sector. It was also driven by people being locked down at home, and looking for other ways to search for properties, view them, and get financial advice.
ICE’s findings show that this is not a temporary shift. Rather, it has satiated a demand that was there before and now there is no going back. Consumers have completely changed the way they utilize technology and now they want to use online tools to complete everything from managing the mortgage to closing the sale.
In fact, 90% of lenders have said they think that technology can improve the mortgage application process. They said that various online and digital tools will simplify the process, reduce the closing time, and lighten the burden of data entry
So how are the trailblazers doing it already?
More than half of consumers said they would be more likely to use and remain with a company that offers online and app-based services. For example, an online mortgage advice and comparison service like Trussle provides a range of digital services that meet the current needs of consumers. These include online comparison tools and ones that will give you various options based on your deposit, income, outgoings, and the term of the mortgage you like.
If a consumer can search for a property, compare mortgages, and even apply for one online, they will save significant amounts of time and effort. According to the survey, consumers preferred having fewer person-to-person interactions, even after the pandemic. A staggering 64% said that an online mortgage process makes buying a home a lot easier. It seems Trussle is on the right track!
Other technological advancements
But it’s not just at the mortgage stage that technology is being successfully integrated. We have had online property search websites for quite some time, which are slowly chipping away at the need for real estate agents. The advent of VR and AR technology has also brought changes to the sector. Shortly, we can expect to not only be able to walk around for-sale homes but also to decorate them and experiment with our furniture before we commit to buying.
In the coming years, even after the pandemic subsides, we will likely see a continuation of the current changes. The majority of the searching, viewing, and buying process will take place online. Transactions and deed transfers will take place on the blockchain, all viewings will take place in a digital dimension, and we will even have AI selecting properties we like, without us having to look in the first place.
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