De-Risking Your Mortgage Transformation
More recently, in response to interest rate uncertainty we’ve seen record amounts of mortgage products being removed from the market in the UK, more than during the pandemic. Digital transformation is no longer a ‘nice to have’, but a necessity to better respond to changes in demand and adapt to an evolving market. With many lenders now looking to, or having already started to, digitally transform their lending operations, it’s time to discuss the ways in which they can de-risk the re-platforming process.
“The current climate proves once again why lenders need to ensure they have built in agility across core technology stacks to facilitate rapid responses to market changes,” said Will Stevns, Partner, Customer Led Transformation in Banking, PwC.
As your financial institution embarks on a digital transformation journey, it’s critical to understand and address the challenges at hand.
3 Challenges Lenders Are Facing Today:
How to transition from a legacy technology estate
How to ensure that BAU is maintained during the transition process
How to take their people with them on this journey
Now for the good news—today’s technology is capable of transforming the entire business to combat these challenges, preparing lenders for obstacles they may face in the future, as the market undoubtably continues to evolve.
However, financial institutions shouldn’t focus solely on automating their current processes, but on transforming their entire business. They can leverage this as an opportunity to transform their policies and processes as well, versus simply rebuilding their platforms and automating existing inefficiencies.
“The transformation programs that have done really well and have really resonated is when that program has a really clear vision for the future that represents both business and technology sides of the house,” said Thomas Chaplin, Head of UK Mortgage Product, nCino. “They’re able to state where they want to get to and how technology plays a role in getting there in the journey.”
When re-platforming, it’s important to first establish strong governance programs to enable transparent and prompt decision making. Establishing key decision makers with authority on technology and across the business is also key.
“Implementation is one of the most important pieces of the change agenda .... Ultimately, a project isn’t going to meet its success metrics unless there are advocates of change...” said Chaplin.
New platforms tend to be a once in a generation program, so highly active ownership from current and future leaders will be extremely valuable in the platform’s long-term success. Today’s cloud native systems provide a flexible, configurable solution with speedy delivery, and they’re more successful when your governance and decision making can move just as quickly.
To learn more about how you can make the most of your digital transformation, download the on-demand webinar now.
As community banks and credit unions navigate a constantly evolving financial landscape, a few challenges become clear. From delivering modern member experiences to understanding the role of legacy systems in a digital world, it’s crucial that community banks and credit unions find solutions that best serve their borrowers.
To buy or to build? That’s the debate in today’s evolving landscape.
In today’s financial landscape, digital transformation has become an essential priority for financial institutions (FIs), and credit risk management is no exception. Despite economic challenges, many banks are making significant investments in advanced technologies to fast-track their digital transformation. While cost pressures are considerable, the potential of technology to enhance automation and efficiency continues to drive these investments forward.
Artificial intelligence (AI) and machine learning (ML) are transforming how financial institutions approach many traditional banking processes. When it comes to AI in the financial services industry, the concept of explainability—i.e., the ability to clearly communicate the process behind AI’s decision-making and understand the model’s inner workings—is of the utmost importance.
Being a leader in the financial services industry requires a seamless approach to innovation and efficiency. One of the crucial elements to success is the integration of automation and augmentation into credit portfolio management, as these tools have the ability to transform operations, manage risk, and improve both banker and client experiences.
