The digitized marketplace highlights two striking trends for mortgage lenders viz. the growing customer expectations and the evolving regulatory landscape necessitating more robust measures for meeting compliance.
Digital-savvy borrowers expect faster loan processing, personalized interactions, and hassle-free services. They have multiple options, including traditional banks, specialized lenders, and Fintech offerings, competing on service offerings, experience, and cost. So, mortgage lenders also need to operate cost-effectively to offer competitively priced services to borrowers.
Serving delightful and cost-effective mortgage services boils down to the effective adoption of digital solutions and an agile mindset. Also, while undergoing this systemic change – across tools/infrastructure, processes and policies, and workforce capabilities – lenders need to be mindful of their compliance obligations in the digitized ecosystem.
For example, a lending institution that wants to digitize documents like customers’ financial records and process blueprints must ensure that the records are well-maintained, protected, and updated. Additionally, these digital records should be accurate, accessible, and auditable to meet regulatory guidelines.
Digital Knowledge Operations (DKO™): A Real-World Approach for Transforming Financial Services Operations
Digital Knowledge Operations™ is a customizable solution framework from Anaptyss, which is widely adopted for driving “realistic” digital transformation across the banking and financial services industry. The framework has distinct application areas and use cases in verticals such as mortgage, financial crime, commercial lending, insurance, cards and deposits, wealth and asset management, and others.
It is also known for enabling transformation in critical functional areas such as customer experience, capability development, finance and accounting, and financial technology.
The DKO-based solution approach emphasizes pragmatism and personalized care/attention as standout aspects to enable quantifiable outcomes based on specific business needs. Here are the key components of Digital Knowledge Operations™:
1. Domain-Led Consulting
This element involves a thoughtful and domain-centric consulting approach to identify particular areas such as organizational policy, tools, technology, practices, processes, people, etc., that require digital intervention or operational expertise.
2. Digital solution implementation:
This aspect looks into implementing digital solutions to enhance operational areas like tools, systems, policies, processes, people, etc., to support the transformation goals.
3. Talent capital & managed services:
The DKO framework also provides a scalable talent pool and managed services to support global delivery on the client’s preferred shores through the right-shoring model.
How Does DKO Help Transform Mortgage Operations?
The proprietary framework offers a highly customized and targeted approach for augmenting or transforming specific areas such as manual processes, physical recordkeeping, execution gaps due to lack of capacity or skills, etc. Here’s an outline of some of these specific solutions:
1. Robotic Process Automation (RPA):
DKO facilitates the implementation of intelligent automation tools to streamline the processes for documentation, application evaluation, approval, form fill-ups, etc. RPA tools help reduce manual efforts, costs, and closing time, and can increase the overall efficiency.
2. Document Extraction:
It allows automating processes like document extraction and indexing, KYC, etc., using intelligent document extraction tools that use Optical Character Recognition (OCR) technology.
3. Predictive Analytics
DKO helps lenders reap the benefits of data by enabling the extraction of actionable insights from unstructured data using advanced data analytics tools. Further, mortgage companies can use data-driven insights to predict demand and optimize pricing and promotions to increase origination, retention, revenue, and profits.
4. Digital Learning
With the Digital Knowledge Operations framework, lenders can access fast and industry-recognized digital learning solutions that enable large-scale workforce training and capability development.
5. Quality Control:
The DKO-led digital transformation approach establishes integrated quality control measures to ensure that the services meet customer expectations. End-to-end quality control also mitigates legal risks by helping lenders adhere to the regulatory guidelines.
Read this case study which illustrates the application of DKO to reengineer the business processes of a US-based mortgage lender. The lending institution faced efficiency and productivity issues due to manual processes, paper-based documentation, manual tracking and reporting, and inadequate quality control. Digital Knowledge Operations™ helped transform these areas, resulting in a 15% improvement in the closing cycle, a 20% increment in efficiency, and other business outcomes.
Anaptyss is a digital solutions specialist on a mission to simplify and democratize digital transformation for regional/super-regional banks, mortgages and commercial lenders, wealth and asset management firms, and other institutions. Its Digital Knowledge Operations™ framework integrates domain expertise, digital solutions, and operational excellence to drive the change.