It’s no longer a myth, or a scene from a sci-fi movie. Technology is taking over. And for professionals in the banking and lending industry, Fannie Mae has an important message, “step up your digital game.”
Digital mortgages are here to say, and big tech firms are catching on quick and looking to take over the market. Banks need to be ready.
In Fannie Mae’s Perspectives blog post, author Steve Deggendorf, Director of Market Insights Research, says banks need to “step up their digital game” and find a way to streamline financial tasks to enhance the customer experience before big tech beats them to it.
According to Deggendorf, Fannie Mae’s third quarter National Housing Survey of 2018 showed more consumers have expressed a willingness to trust their favorite tech firm with their financial needs, including obtaining a mortgage.
In a recent Velocity blog post, we talked about the possibility of Amazon offering mortgages to consumers. This is something that is still on the horizon, and backs Fannie Mae’s survey results.
What did Fannie Mae’s survey reveal?
- Just a minority of Americans say they are “very likely” to recommend their bank, but stay with them out of convenience and trust.
- Respondents said they are less comfortable performing complex financial tasks online, including applying for a mortgage. And, of those who make mobile payments, one-third use payment services offered by Big Tech.
- While a small share said they trust tech firms with their money, when naming their favorite tech company, respondents said they were likely to trust that particular company to handle their financial activities, including their mortgage.
When respondents were asked if they would trust their favorite tech company to handle their financial activities, here were the results:
As Google, Amazon, Facebook and Apple are looking to enter the financial services arena, the banking and mortgage industries need to take note.
According to Deggendorf, “These new entrants are looking to offer financial services and are often credited with offering dazzling consumer digital experiences significantly better than those of traditional banks. Given the digital and customer experience prowess and resources of Big Tech firms, they may be especially well-situated to compete against traditional financial institutions.”
Big Tech firms excel at the online digital experience in ways that most banks do not currently, and they are increasingly experimenting with fulfilling their consumers' financial needs, Deggendorf wrote. “Now is the time for banks to step up their digital game and, more specifically, to consider how to best digitize more complex financial tasks before Big Tech does.”
Step Up Your Digital Game in Real Estate:
Big tech is influencing more than just banking, it’s leaving a mark on the future of real estate as well. Velocity Title recently investigated how technology is influencing our industry. Artificial intelligence, blockchain, and virtual and augmented reality are all things realtors and lenders should be aware of right now. Now is the time to step up our digital games to stay ahead of competition and in the sights of our target audiences.
To learn more about how Velocity Title’s automated technology can impact and impress your clients—while making your job easier—click here or contact us at 301.805.2900.
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Velocity Title supports the real estate industry with a comprehensive line of title services including purchases, refinances, commercial, title insurance, attorney consulting, 1031 exchange, and short sales. With a focus on the best CUSTOMER EXPERIENCE, Velocity Title incorporates leading title TECHNOLOGY and EXPERTISE into every transaction—enabling the final step in the home buying process to be EASY, EFFICIENT and INFORMATIVE. To learn more, contact us today!