What began as a description for back-end operations technology, Fintech now applies to a broad spectrum including online marketing, business intelligence and customer experience. Mortgage companies may have gotten their first introduction to the concept of Fintech during the wave of regulatory change that included formation of the Consumer Finance Protection Bureau; but they're now realizing that its application - and necessity - reaches far beyond compliance. Technology is no longer optional, and neither is keeping up with its constant mutations.
Regardless of benefits, change is historically difficult for people and organizations, and that's especially true when it comes to technology adoption. Current systems and technology are the biggest impediments to innovation according to 51% of senior and mid-level financial services managers surveyed on behalf of consulting firm Janeiro Digital. The respondents cited three major roadblocks to successful implementation of new technologies:
- Lack of technical skills - 29.5%
- Legacy technology/infrastructure - 31.6%
- Lack of support for change - 34%
Technology can be upgraded or replaced and people can be trained; however, lack of support for change is trickier to overcome. Some people don't consciously realize they're resistant to change - they just find it difficult. Others however are fully aware of their resistance - they just won't openly admit it.
In order for technology adoption - and the change that goes along with it - to be successful, leaders must fully commit to the systems they choose and the long haul of gaining acceptance throughout the organization. You'll find a great roadmap to create successful change from inception to implementation in the CLEAR Course, which helps circumvent, identify and eliminate resistance at all levels of an organization.
Attempts to commoditize the mortgage industry show no signs of slowing and non-bank lenders continue to increase market share. Companies must acknowledge that technology is the key to growth as consumer sophistication continues to evolve. Finding and deploying an enterprise-level solution that assists producers and eliminates friction for consumers is a start, but sustainability and success require ongoing leadership commitment, engagement and support.
Download a copy of Change Expectations: Mastering Organizational Change in the Mortgage Industry here.