Mortgage Software Solutions Blog

What Technology Is Changing In Banking For 2018

blog pic 4In the future, financial information and programming will be increasingly available on-the-go.

The old days of purely brick-and-mortar banks are over.

Mobile banking is the preferred platform as global smartphone use skyrockets and our preference for handheld interaction grows.

In 2011 only 10% of the world’s population used a smartphone. By 2018, that number has reached over 36% penetration.

From traditional commercial banks to finance technology or “fintech” startups, the banking industry is competing in an all-out sprint towards digital progress.

Here are 4 ways that technology is changing the banking industry in 2018.

  1. Open Banking

Open banking is a phenomenon being pushed by regulatory bodies around the world.

Lawmakers in the EU, UK, and the US have all passed legislation that takes personal financial data out of the hands of the banks and returns control to consumers.

The EU’s Payment Services Directives (PSD 2007 and PSD2 2015) will be fully implemented this year.

Together the PSDs regulate financial service providers by requiring transparency about consumer rights and the banks’ obligations to the public. They also require banks to free up customer data for third party access, limiting the power of the bank that gathered it.

The EU regulations coincide with the “Open Banking revolution” in the United Kingdom that intends to make banking more competitive for increased consumer protection. The UK also made it mandatory for all banks to provide third-party access to customer financial data using open API technology at the start of 2018.

In the wake of the Equifax data breach on the other side of the Atlantic, the United States made their move towards stricter regulations beginning in 2017 with the state of New York. US laws are focused on cybersecurity and consumer protection via speedy cyber attack reporting and increased government oversight of consumer data mishandling.

The proximity of these launch dates mean that traditional banks around the world face new technology-based limitations. Open banking and cyber security requirements leave the door open for tech-savvy challengers with a spotless reputation for safeguarding the public.

  1. RegTech

Another technology changing global banking in 2018 is regulation technology or “RegTech”.

RegTech is the umbrella term for software tools specifically designed to streamline regulatory compliance.

In the EU, RegTech has been using guidelines from the 2004 and 2011 Markets in Financial Instruments Directives (MiFID) as well as the General Data Protection Regulation (GDPR) of 2014.

Newly developed RegTech takes new 2018 regulations into account and eliminates duplication issues and insufficient data storage signposting.

Due to increased regulation, the adoption of these programs across the industry will determine which finance organizations move ahead and which ones get stuck hitting every legal bump in the road.

If implemented well, RegTech has the potential to significantly reduce risk, speed up compliance management, and control bank costs despite increased accountability.

  1. Robo Advice

“Robo advice” is the term for technology that does traditionally human jobs in investment banking.

In the past, investment managers evaluated a customer’s financial situation, communicated investment options, assessed risk appetite, handled portfolios according to client preferences, and relayed information about performance back to the investor.

Robo advice is the software and algorithms that provide these services digitally and accessibly on mobile devices like smartphones and tablets.

Millennials aged 22-37 prefer to work with apps and digital information over commercial banks. The demographic has a do-it-yourself attitude and shows an aversion to traditional banking institutions that have steered them into crushing student debt.

In fact, 75% of American millennials report trusting a financial product from a fintech company. Almost half of millennials in the US with investments report being aware of robo-advisors, while a full 11% currently use a robo-advisor exclusively.

With a frictionless user experience, robo advice may become the new norm.

  1. New Technology

In the UK, financial services newcomers are edging out traditional banks. Startup lenders like Iwoca in the UK are touted as the “future of small business lending” by using software algorithms to make credit decisions and having quick loan turnaround thanks to fintech.

By using all-digital or hybrid platforms combining human and algorithmic tools to reach customers, other digitally-native finance startups are slated to follow their lead.

Whether it’s anti-monopoly Open Banking APIs, intelligent RegTech software to handle compliance, or the growing preference for robo advice over human interaction, technology is making huge waves in the global banking industry this year.

As the digitally-native generations grow, traditional financial institutions scramble to expand their digital offerings while fintech startups flourish and join the market.

Join us at the cutting edge of technology with regulation-compliant cyber security, remote device access, and more. ABT equips mortgage lenders with the tools for success in a digital world.

Image: Visual Hunt

Topics: millennials cloud storage mortgage business mortgage regulations mobile technology mortgage industry Consumer Finance Protection Bureau Compliance Audit job opportunity cloud-based data Trump Administration Housing Market Mortgage Lending

Why Millennials Are More Productive with Less Effort: Cloud Technology

millennials-cloud-technology.jpgThe millennial generation is getting more done than any other generation, and it is because they have embraced the technology that is available to them. Many assume that because a millennial has their head down and is holding a tablet or smartphone, it means they're playing a game or browsing social media. But there's a very real possibility that they're getting work done—even while they're waiting for their coffee, their train, or the elevator. Imagine if you could use this same approach to better serve your mortgage customers.

Cloud Technology

One of the main reasons millennials are so good at being productive is that they know the benefits of cloud computing. The cloud makes it possible to access all sorts of information from anywhere, at any time.

The average millennial doesn't believe that they need to be in the office on a daily basis unless there is a meeting. Why is that? They have the versatility to do almost anything from a laptop or mobile device because they can get all the data they need from the cloud.

Likewise, loan officers don't need to be tied down to their desks any longer. They can be answering emails, reviewing applications, and contacting potential clients while out and on the go. Rather than using an internal server, your company can store all of its data securely in the cloud, giving everyone within your mortgage company access to what they need. You can also create restricted access for certain folders so that top-level data is not accessible to entry-level employees.

Millennials are hardworking and they are figuring out how to make the most of their time. They are always on the go, but they are also always connected—and this makes them more productive. So while they may be going down to get a coffee in the middle of the work day, they are still checking emails, compiling reports, and reviewing everything that is going on. They can do all of this as they wait for the barista. Compare this to sitting at a desk, completing one task at a time and getting sidetracked every time the phone rings. Using the cloud may allow you to service more customers and to provide a better level of service.

Productivity is Boosted

Millennials believe it's important to get work done. However, they follow a different train of thought when it comes to productivity: they want to first know what their role and responsibilities are, and then they will work on the to-do list. When it comes to work–life balance, they also bring a different perspective to the table: rather than striving to be the first one in or the last one out every day, they focus on getting their assignments done and then moving onto whatever's next. By utilizing the technological resources at their fingertips, they are able to multitask throughout the day, increasing their efficiency on every project.

This kind of mentality can greatly benefit mortgage companies. It’s about working smarter, not harder. Rather than being plugged into just one kind of technology and working on one assignment at a time, employees can make use of today’s developments to speed up their workflow and increase the number of clients they can be servicing at once

More efficient service will mean happier customers, and better work–life balance will mean happier employees.

The possibilities are endless if you have the information you need to do your work wherever you go. Cloud mortgage technology can bring you this freedom. ABT’s MortgageWorkSpace® is your mortgage office in the cloud.

To learn more about mortgage company technology solutions and how the cloud can work for you, contact Access Business Technologies today.

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Topics: Cloud Services Cloud Computing millennials