This article was originally published on Mortgage Solutions.
Innovation in mortgage technology and advancements in digitally enabled advice are creating waves across the industry but the terminology can be a challenge. Here's what you need to know to tackle those technology topics
User Experience (UX)
UX refers to the user experience, for instance, the experience a broker or borrower has with websites, systems and apps. The aim of UX design is to create easy to use, intuitive websites and applications, which are delightful to interact with.
UX is increasingly a key differentiator, and our recent Mortgage UX report showed that it is an area the industry lags behind in. Mortgage websites and systems with good UX reduce the speed of finding information for customers and brokers, as well as the speed of processing cases no matter what device is being used.
Responsive websites automatically adjust to the device (mobile, tablet or desktop) and screen size and deliver an experience tailored to that device. Many lenders and brokers don’t have fully responsive websites, despite mobile devices now dominating web traffic usage.
Short for Property Technology, PropTech refers to the new startups and technologies taking on the real estate market. Examples of well-known PropTech companies include Rightmove, Zillow and Zoopla.
CRM (short for customer relationship management) is the method or system that companies organise and handle interactions or relationships they’ve had with either current clients or potential prospects. For instance, many companies use a CRM software to track their conversations for sales and marketing purposes.
APIs (short for Application Programming Interface) enable systems, services and websites to talk to one another. Typical uses for APIs in the mortgage world include: plugging your website and CRM together so that website enquiries automatically appear as prospects (meaning no re-keying) and showing latest rates available from your sourcing system on your website.
Blockchain was initially created to power Bitcoin, offering a secure, transparent global ledger that is distributed to all that used the cryptocurrency. Think of it like a giant, interactive spreadsheet with control processes to ensure the integrity of the data.
For the mortgage sector, this has the potential to fundamentally transform how legal and financial transactions take place, from origination all the way through to secondary markets, reducing the risk of fraud and decreasing transaction times. In practical terms, tamper-proof, single shared copies of legal agreements and full electronic audit trail of changes could greatly speed up the conveyancing process. But this technology is in its infancy and will not likely affect the workflow of brokers for many years to come.