Posted by MeridianLink | April 8, 2022

Partner Post: The Surprising Reason Most Lenders Fail Their Digital Transformation Initiative

The following post is part of a series of blogs written by MeridianLink Partners who will be attending the MeridianLink LIVE! User Forum in May 2022. To learn more about the event, click here.

By: LenderHomePage

After the refinance boom that triggered lenders to expand their teams and rush to implement digital solutions, many were surprised that they still struggled with the workload. And now that many lenders are in a hiring freeze, they’re left wondering how they’ll be able to effectively service these loans with a limited team and keep up with their ever-demanding revenue-growth needs.

For those lenders – the ones that are still grappling with volume processing requirements despite having the software – there’s a simple yet critical reason why it’s not working: there are gaps in the workflow.

What It Means to Have Gaps and Why It’s Detrimental to Digital Transformation and the Workflow

The promise of digital transformation isn’t just about going from paper to digital but also automating it. However, many mistake seeing mortgage software as only a tool to help “handle the workload.”

Choosing software based on individual tasks rather than how it works as an ecosystem will ultimately lead to failure every time.

To better understand this concept of gaps in the workflow, you want to examine each step in your operations. From the initial contact with the consumer to funding the loan, consider:

  • What touchpoints do you have in place to reach your digital consumer?
  • What action do they take at that touchpoint, and where does it lead?
  • Once the originator has their information, where does it populate, and what is done with it?
  • What automated tactics are in place to help nurture the lead?
  • Are there any similarities between abandoned applications?
  • How much time is spent on each loan file?

From these initial questions, one can begin to drill down to uncover gaps or points of friction in digital processing. It’s important to note that no matter the size of the enterprise, from single brokers to multi-branch lenders, discovering the gaps and correcting them is the only way to transform successfully.

The Underlying Benefits of Closing Gaps in Digital Transformation

Remember that automation is more than handling the current workload. The originator also needs to maximize profit margins. While some argue that technology, by nature, will increase margins by eliminating human-led work, we’ve demonstrated that’s not always the case.

Disruptions to the Workflow Are Burdensome and Costly

These POS platforms may have helpful functionality within the product, but when it comes to working within the originator’s processing ecosystem, it’s utterly useless. For example, some mortgage point-of-sale platforms have incomplete or broken integrations with third-party systems. The integration can be fragmented to the point where data has to be entered manually from the POS to the CRM and back again.

On the other hand, a POS platform with deep integration and intuitive design is overwhelmingly valuable and boosts productivity, directly resulting in revenue.

Another often overlooked factor in digital transformation is how to leverage it to influence behavior to leverage profitability. For example, in our Loanzify POS platform, we’ve designed an exclusive in-app self-pay credit pull called Credit Connect.

Credit Connect is a self-pay feature where loan applicants can pay for their credit reports. While this feature has massive initial implications for increasing profit margins by wiping out thousands of dollars on credit pulls, it also serves as a sort of “filter” that underscores the prospect’s commitment to complete the application process.

Essentially, once they’ve put some “skin in the game,” the more likely they will see the application through to the end –minimizing the gap between time spent on prospects with high intentions versus ones with low intentions.

The Fastest Way To Eliminate Most Gaps In Digital Transformation

The initial challenges lenders face with digital transformation – the research, decision, and ultimate implementation are overwhelming even for the tech-savvy. And just when the lender believes they found the best software for them, they’re slapped with the next set of hurdles—the massive gaps that slowly bleed their productivity and profit margins.

The solution? Prioritize platforms with an all-in-one approach where each component has the most critical functions built into their structure and the ability to seamlessly work together, enabling the lender to build their digital solution quickly.

At LenderHomePage, we make it incredibly easy to achieve a gap-free digital transformation within minutes.

Beginning with our flagship Mortgage Websites, lenders can add a centralized loan hub with our Loanzify POS, plus stack on a Mobile Mortgage App with Digital 1003. Lenders ready to dominate with their digital presence can also take advantage of our Local SEO and Social Media Marketing plus level up with branding with our Creative On-Demand.

The mortgage industry is filled with many challenges and uncertainties. But with the suite of digital mortgage products from LenderHomePage, digital transformation doesn’t have to be one of them.

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