How the “Quest” to Innovate the Financial Services Industry Does Not Always Work
The mortgage industry has been slow to change over the past decade. Besides adapting to new regulations, financial institutions have not had to change the fundamental way in which they operate for many years. However, in 2015 Rocket Mortgage was launched. Quicken Loans, who developed Rocket Mortgage, touts it as “The first completely online mortgage experience…” It allows prospective home buyers to complete mortgage applications online in 5 minutes or less. The company was created to cut down processing time and streamline the application process and was hailed as a big success. Today there is a diverse marketplace of online lenders such as loanDepot, LendingHome and SoFi, who are jumping on the bandwagon to make it easier and faster to apply for loans.
However, it’s not always that easy. Seven days ago, a mortgage tech firm called Sindeo announced that it would be closing its doors. This was a surprise to many in the mortgage industry. Sindeo had some very experienced members on their team such as Fannie Mae executive Deepak Kumar and former Consumer Financial Protection Bureau attorney advisor Joe Danganam. In a quote from the Sindeo website, CEO Nick Stamos wrote “Startups are hard and simplifying the highly regulated, complex business of mortgages is even harder." Stamos couldn’t be more right. It’s no secret that the mortgage industry faces a lot of challenges that hinder innovation. However, one thing to keep in mind is that in order to navigate through complex issues and processes, customers often need someone to talk to, an expert. Originally Sindeo had an online marketplace where people could choose from over 1,000 different loan programs. With all of those choices, it was very easy for borrowers to become overwhelmed. Applying for a mortgage is stressful no matter how abbreviated the process is and people wanted to be able to talk to live representative, who had lending experience. The call center model, does not work as well in such a specialized industry.
Today, most people still go to car dealerships to purchase their vehicles and in the same way that the auto industry has not adapted as quickly to new technology, the mortgage industry has remained stubbornly entrenched in its old ways. Though millennials are quick to praise the latest app, it has to offer all of the same benefits as the traditional experience, with less hassle. Enter QuestSoft. We’ve been creating easy to use, affordable mortgage compliance software solutions for over two decades now. We know the complex challenges the mortgage industry faces and we are the thought leaders.
At QuestSoft, we leverage technology with our vast industry expertise, to make things easier for lenders. Software such as Compliance RELIEF compiles all regulatory reports and submissions into one platform that catches errors automatically. Automated compliance software allows your staff to focus on what’s important; your customers. Disruption, like change is inevitable. Experienced industry leaders like QuestSoft have the history and knowledge to bridge the gap between the next killer app and true compliance relief!