Predict the Future of Mortgage Lending with Analytics

  • Share:
technology

technology, tech, home buying, financing, financeing, mortgage, fintech

While many still think of artificial intelligence and machine learning as something out of science fiction, this technology is quickly becoming a valued — and inescapable — tool for the financial services industry. Machine learning can already be seen in use to power chatbots, deal with fraud prevention, assist with data and risk management, improve workflows and, in short, help make banking easier for both financial institutions and their consumers.

The popular streaming entertainment service Netflix uses large-scale machine learning to provide personalized recommendations to viewers, as well as provide insights on technical issues such as video quality, mismatch among devices and other issues. Netflix even uses machine learning for predictive caching, which enables a video to load faster and at a higher resolution by predicting what media the viewer is likely to choose. According to Business Insider, Netflix says its machine learning program saves the company roughly a billion dollars every year, thanks to money saved on traditional analytics, avoiding user abandonment and the program’s value in guiding the creation of new, original content.

How can financial institutions utilize this in the field of mortgage lending?

Machine learning can generate valuable insights for credit unions trying to understand what home buyers want, and how to better serve those members. Specifically, insights like:

In turn, these insights will lead to greater ease in generating leads, increasing conversions and improving retention.

Generate leads

Generating leads the traditional way can be time-intensive and expensive. Organizations equipped with machine learning can expedite the process. According to leading experts at the managing consulting firm McKinsey & Company, sales teams working with AI are seeing an increase in leads and appointments over 50% compared to previously, as well as cost reductions of 40% to 60% and call time reductions of 60% to 70%. Sophisticated machine learning tools can help credit unions connect behavioral data to more meaningful leads.  

Increase mortgage conversions

Generating qualified leads is only the first step. After identifying a potential home buyer, machine learning can further aide credit unions with insights such as when a member is looking to purchase a home, the locations they are looking in, as well as other variables that could inform loan officers before a follow-up call.

Online application process statistics diagram

And ultimately, improve retention

Keeping in touch with members is the most important factor in retaining their business. Machine learning systems can automatically notify credit unions when a member is ready to refinance, buy or sell a home. In some cases, AI-driven technology can identify this before it occurs. Mortgage lending may be only a fraction of a credit union’s services, but it can be a large factor in member retention and satisfaction — if technology like AI and analytics are harnessed to anticipate member needs and avoid pain points in what has traditionally been a very arduous process.

  • Share:


« Return to "Trends"
TrendScan logo
<< Back to Articles

Latest Trends

  1. Identifying Marijuana-Related Businesses
  2. Cut Through the Noise and Deliver Value Members Want
  3. 3 Key Factors for Creating Good Content
  4. Preparing a Transparency Communication Plan
  5. A Content Management System Will Make Your Life Easier
  6. Enterprise Risk Management — Where to Start
  7. Why You Need ERM in Your Strategic Planning
  8. Credit Unions Could Replace Predatory Lenders
  9. Just How Distracted Are Consumers?
  10. Are You Properly Rewarding Your CEO?
  11. The Quickest Way to Understand Enterprise Risk Management (ERM)
  12. Opportunities and Risks of Banking for Marijuana-Related Businesses
  13. The Easiest Way to Deliver Content for Employee Development
  14. What Borrowers Wished Credit Unions Knew
  15. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  16. 5 Things Credit Unions Can Learn from Cyber Attacks
  17. Experience Company Growth and Discovery with Employee-Driven Communication
  18. Should You Still Be Concerned about ADA Website Compliance?
  19. Consumer Attitudes Toward Digital Advertising
  20. Are You Ready to Adopt a Continuous Performance Management System?
  21. The Member Service Experience
  22. Become a Tax Resource for Members
  23. Building a Website with the User in Mind
  24. Learning Management Systems: What Credit Unions Should Consider
  25. Don't Get Snagged on ADA Compliance Requirements
  26. How Useful Are Member Personas for Credit Union Marketing Teams?
  27. The Quest for a One-Stop Shop Financial App
  28. Is Your Credit Union Supported by the Four Pillars of Digital Banking?
  29. 2 Big FinTech Goals for Credit Unions
  30. Omnichannel Delivery: Banking Based On Members
  31. Preparing for Compensation Transparency
  32. Bankers associations’ opposition to mergers does a disservice to member banks and to consumers
  33. Popular DDoS Mitigation Methods in 2019
  34. The Planning Process - Improved
  35. Credit Unions Have an Opportunity to Help Their Members Through Tax Season
  36. Anticipating Change with a Succession Plan
  37. The Role of HR and Hiring Managers in the Candidate Experience
  38. Americans' Lack of Financial Literacy Is an Opportunity for Credit Unions
  39. Credit Union Compensation: Philosophy or Strategy?
  40. The Performance Management Conundrum: Structure vs. Creativity
  41. Volunteer and Young Board Members Need Development
  42. 7 Tax Changes Your Members Need to Know About
  43. What's Hot in Performance Management Technology
  44. 3 Website Design Trends for 2019
  45. The Quickest Way to Find the Right (and Safest) CMS
  46. Content Marketing: Well Worth the Effort
  47. Keep content relevant, short, iterative and engaging
  48. Americans Trust Their Financial Institutions for Tax Advice
  49. Continuous Performance Management is Disrupting HR
  50. Your Social Media Accounts Deserve Quality Content
  51. Is Your Executive Compensation Still Appealing?
  52. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  53. What Credit Unions Should Do with Ambiguous ADA Standards
  54. Why HR Should Take Advantage of Employee Self Service
  55. Consumer Appetites in Mobile Innovation
  56. Do You Know Why Payday Loans Are Used so Much?
  57. 3 Succession Plans Your Credit Union Needs
  58. Shifts and Trends to Know About in E-Learning
  59. The Importance of Creating Quality Content
  60. Why You Should Invest in an Applicant Tracking System
  61. Content, Tools, and Channels to Capture Consumer Attention
  62. Selling Payments and Wealth Management Services
  63. 6 Factors for Choosing the Right ESS System
  64. The Win-Win Results of Prize-Linked Savings for Credit Unions and Members
  65. 5 Guideposts to Measure Your Brand Promise Against
  66. Build Up Membership Through Supportive Savings Programs
  67. The Website Audit Your Credit Union Needs
  68. People Analytics: Bringing HR and Data Together
  69. The Best Compliance Training with New Topics You Will Need
  70. Optimizing Websites for Voice: What You Need to Know
  71. Prioritizing the Credit Union Employee Experience
  72. Wanted: Apps for Clarification and Simplification
  73. The Process of Crafting a Relatable, Moving Brand Story
  74. You Know You Need an LMS — Now What?
  75. A Simple Way to Unify Your Marketing Efforts
  76. How to Identify What You Want in an ESS
  77. Achieving the Golden “Narrative Transport” in Brand Storytelling
  78. Is Your CMS the Right Fit?
  79. 4 Steps to Increased Social Media ROI
  80. Serving the Underbanked and Millennials
  81. Making Sure You Have the Right Leaders in the Right Seats
  82. The Credit Union Advantage for the Digital Customer
  83. Remaining a Player in the New Home-Buying Experience
  84. The Dream Team for Successful Online Customer Interactions
  85. Keeping Up with Digital Lending Convenience
  86. Are You Missing Out on the Power of Video?
  87. Predict the Future of Mortgage Lending with Analytics
  88. Empowering Employees and HR with the Latest Technology
  89. Caution: Customers Don't Always Ask for What They Want
  90. Leverage the Resources of Trusted Experts for Tax Season 2019
  91. How Credit Unions Can Formalize the Branding Process
  92. Are Your Landing Pages up to Snuff?
  93. Conversational Commerce and the Rise of the Chatbot
  94. Don't Undervalue Your Brand Promise
  95. You Might Already Have the Solution to Your Current Talent Competency Gap
  96. Credit Unions Can Compete with Shadow Banks
  97. What the C-Suite Wants out of Social Media
  98. Three ways to up your social media game
  99. How to Generate Content with Fewer Resources
  100. 3 Factors Impacting Credit Union Compensation Plans
  101. Prepare for integration
  102. Common Mistakes in Compliance
  103. The Secret to Future-Proofing Your Organization
  104. Don't Underestimate the Power of Financial Education
  105. Identify how chatbots will help you
  106. Three Ways to Enhance Compensation Strategy for an Age-diverse Workforce
  107. If Your Site Isn't Mobile Optimized, You're Losing Out
  108. 3 Brand Promises Credit Unions Can Learn From
  109. Underestimate the Onboarding Process at Your Peril
  110. How Credit Unions Can Embrace Storytelling in Marketing
  111. Protect Your Credit Union with a Website Accessibility Response Plan
  112. Leveraging Social Media for Member Engagement
  113. Finding the Best Platform for HR Technology
  114. Do you need a new compensation strategy for multigenerational staff?
  115. What others are doing

Related Trends

  1. Conversational Commerce and the Rise of the Chatbot
  2. Identify how chatbots will help you
  3. Prepare for integration
  4. Remaining a Player in the New Home-Buying Experience
  5. Predict the Future of Mortgage Lending with Analytics
  6. Is Your Credit Union Supported by the Four Pillars of Digital Banking?
  7. Omnichannel Delivery: Banking Based On Members
  8. The Quickest Way to Find the Right (and Safest) CMS
  9. A Content Management System Will Make Your Life Easier
  10. Credit Unions Could Replace Predatory Lenders
  11. 5 Things Credit Unions Can Learn from Cyber Attacks
  12. Do You Know Why Payday Loans Are Used so Much?
  13. What Borrowers Wished Credit Unions Knew
  14. Serving the Underbanked and Millennials
  15. Should You Still Be Concerned about ADA Website Compliance?
  16. Don't Get Snagged on ADA Compliance Requirements
  17. Consumer Appetites in Mobile Innovation
  18. The Quest for a One-Stop Shop Financial App
  19. Wanted: Apps for Clarification and Simplification
  20. What Credit Unions Should Do with Ambiguous ADA Standards
  21. What Is a DDoS Attack and Why Should Credit Unions Be Concerned?
  22. Building a Website with the User in Mind
  23. 3 Ways Credit Unions Can Prepare for a Cyber Extortion
  24. 3 Website Design Trends for 2019
  25. The Credit Union Advantage for the Digital Customer
  26. Optimizing Websites for Voice: What You Need to Know
  27. Is Your CMS the Right Fit?
  28. 2 Big FinTech Goals for Credit Unions
  29. Caution: Customers Don't Always Ask for What They Want
  30. The Website Audit Your Credit Union Needs
  31. Keeping Up with Digital Lending Convenience
  32. Protect Your Credit Union with a Website Accessibility Response Plan
  33. Credit Unions Can Compete with Shadow Banks
  34. Popular DDoS Mitigation Methods in 2019

Industry insights
to your inbox!

Subscribe