By Sean Dugan
The tech stack is the engine that powers credit unions’ mortgage business. Like any engine, it needs regular maintenance to keep firing on all cylinders. Aging and outdated technology puts credit unions at a competitive disadvantage by limiting their ability to make timely and informed decisions, respond to changes in demand, and recruit and retain talent.
Dark Matter Technologies held discovery sessions with 32 decision-makers from banks, credit unions and independent mortgage banks (IMBs) of various sizes. They agreed that addressing signs of wear in a mortgage origination tech stack is a cornerstone of their technology strategies. Here are some signs your tech stack needs a tune-up to keep running at full power:
- Slow performance
Software issues can feel like an everyday hazard when navigating the complexities of mortgage origination. Before you dismiss seemingly minor delays and annoyances, look at the big picture. Delays pile up like traffic. They might well hamstring your credit union’s ability to complete tasks, and they can leave your members feeling trapped on a never-ending road to get home. Many credit unions and other lenders we spoke with experienced this firsthand during the refi boom.
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Over-reliance on human effort
You probably didn’t hire your loan team because they excelled at spending hours doing “stare-and-compare” file reviews and manual data entry - that’s what a virtual assistant is for. You probably focused more on their ability to focus on high-value work requiring a human touch, such as guiding members through the loan process and sourcing new and repeat business. If hours of your team’s valuable time are going into manual tasks that artificial intelligence can handle with ease, it might be time for an upgrade.
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Costs that keep creeping up
In the long run, maintaining an old vehicle can be more costly than going in on a new one. Some credit unions worry that new technology will be more expensive than the old, but they should carefully review the internal time and resources devoted to administering, updating, testing and deploying technology at each stage of the loan process. These costs often climb as systems and their connections age.
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Redundancy
When credit unions expand their business, they may absorb teams that come with their own legacy systems. Some of these likely overlap with the organization’s preferred solutions–if they work together at all. Not only do these redundant systems place strain on tech infrastructure, but they also duplicate effort and make it difficult to share data across the organization.
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Too many silos
If you used four tires from different brands with different levels of wear on your car, driving would be an interesting endeavor. When credit unions rely on piecemeal systems that don’t integrate well, the experience for employees, members and management will start to suffer. Inefficiencies flood in as users wade through a sea of multiple logins, scattered program windows, and a multitude of apps that don’t connect. The only cure is to leverage systems that communicate fluently with one another, orchestrated by a powerful digital LOS that makes seamless integration a breeze.
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Security vulnerabilities
If someone breaks into your car, you should probably change the locks. Similarly, if a credit union is experiencing frequent security breaches, data leaks and unauthorized access to its systems, it’s time for a tune-up. All of these can indicate the need for upgrades to prevent exposing sensitive company intelligence and non-public customer information to bad actors.
Read the full article on Dark Matter’s website today.
Dark Matter Technologies’ chief revenue officer Sean Dugan is a seasoned professional with more than 25 years of experience in the mortgage industry. Leading by example, Sean’s team stresses proactive responsiveness, listening first and then proposing solutions that will resolve problems before they arise.