Over the last few years, major institutional lenders have become accustomed to relying on technology and conducting more digital-type deals. With major firms, this technology is easy to adopt and cost-effective. However, some smaller institutions have found that implementing such technology has been budget prohibitive when looking at development costs.
However, implementing technology that has traditionally been used only by major financial institutions is a less costly prospect than it once was. This is primarily because some technology providers have packaged solutions that even the smallest private lender can now afford to take advantage of and many of these tools are priced on a subscription or fee-per-purchase basis as opposed to having to potentially develop your own solution, working with programmers.
This is really leveling the playing field, making it easier for smaller lenders to be more versatile and competitive with the bigger players.
Automated solutions are hitting the marketplace that deal with everything from marketing solutions to the ability to validate property and homeowner related data.
Look at automated valuation models for example. Traditionally relied upon by the big banks and insurers to validate information like a property’s value, home ownership, registered mortgages and more, in recent years AVMs have become more widely available and used by smaller lenders. This enables them to access the same information the big players are looking at when doing everything from planning organizational strategy, to marketing, to underwriting individual deals.
This enables smaller lenders to process and administer approvals and even underwrite their deals much faster. It also means that B lenders that may look at higher risk deals can mitigate their risk by independently verifying more information. Not only does this help to mitigate risk, it also enables a smaller lender to identify upsell opportunities.
The beauty of being a smaller lender is that you are more adaptable – whether that means changing your strategy as an organization or your strategy as it relates to a particular deal. You are positioned to offer more flexibility and value to customers than larger institutions who can get bogged down with red tape and autocracy.
Your tools should reflect this flexibility and level of service, enabling you to do more for less.
At Purview For Lenders, we’ve got the tools without the prohibitive price tag.
Find out more today by visiting https://lenders.purview.ca/.