A lot has been said about building out a mortgage ecosystem and the value it can bring in terms of properly serving customer needs across their entire journey. This approach has recently been ‘de-risked’ somewhat through the advancement of API technology, which has allowed different systems to seamlessly integrate and create a best-in-class experience.

However, a one size fits all approach doesn’t work for all lenders, especially when they are serving different types of customers and product needs. To really achieve the customer experience and efficiency enhancements expected from an optimal home-buying journey, lenders need to integrate third-party functionality via vendors that specialise in specific parts of the value chain.

More importantly, the right technology partner and platform will design a user experience that not only allows for ease of integration but will also embed data within the customer, colleague and broker journey to create a seamless experience for all users.

Lenders need to be agile

The recent instability in the market makes this even more critical. Lenders need to be more nimble to react to changes in the market and adapt their lending criteria and product set to match demand or account for economic factors.

For example, with the current economic crisis, affordability assessments have become even more integral. This means integrations to credit decision and income verification solutions will be key to ensuring faster and more accurate decisions by using real-time customer data that feeds directly into an origination platform via Open Banking or the use of Credit Bureau data.

Legacy tech is holding some lenders back

This all sounds great in theory, but the reality that many lenders are facing is that they are currently interacting with multiple disconnected systems to originate one mortgage loan from application to close. Integrations into legacy technology take too long to build, are not flexible enough, and key value-adding elements outside of the initial minimum viable product are often de-scoped due to budget constraints. This all leads to disparate data and poor customer experience, slows down processing times and creates a lack of transparency for brokers, underwriters and mortgage advisers.

Why the user experience is key

For a transformed lending experience, the ecosystem must be optimised for customer centricity. While it’s ‘easy’ to select multiple vendors and piece together an ecosystem, an experienced partner will provide guidance on the holistic customer journey.

When working with a platform provider, their experience teams can design a journey that can visually present third party data making sure it’s woven seamlessly into the user experience. It’s more than just an integration and a data model — it’s a presentation and interpretation of data in a clear and understandable format through the entire journey.

An open API architecture helps undo siloed systems and ensures data can be transferred easily. As an application moves through the process to close, APIs can facilitate data transfer for affordability assessments, credit checks and valuations to generate offers in days, instead of weeks, connecting multiple third party systems together, reducing costs for lenders while better serving customer needs.

In future, this could extend further to create an ecosystem around the holistic homebuying experience and could factor in ancillary services alongside mortgage origination such as legal, construction or insurance services.

What to prioritise when building out your ecosystem

The ecosystem approach could feel like a more expensive or labour-intensive option than working with a single supplier for a holistic programme. However, when costs are factored against efficiency and experience gains, plus the benefit of working with experienced suppliers, then long-term benefits can be achieved.

By partnering with a robust platform and implementation partner that invests in an ecosystem, you can benefit from their roadmap and innovation for your own benefit and realise the value and return of your investment more quickly.

Learn more about the nCino platform solution and how we are transforming financial institutions through innovation, reputation, and speed.

Thomas Chaplin serves as a Head of Mortgage Product at nCino, EMEA. Thomas works with financial institutions across the EMEA region to understand their lending processes to help them accelerate their digital transformation projects. Prior to joining nCino, Thomas worked in various product management roles at Lloyds Banking Group and Accenture as a management consultant. He has over 19 years of experience in financial services and is a passionate advocate for digital transformation. Thomas holds a holds BA in Business Management from the Open University, London