EMAPTA, a leading Philippines outsourcing supplier, shares their insights on this topic.
The manner business is conducted among financial institutions like banks, and credit unions have changed in recent years. These financial establishments have been faced with various challenges whether it is adjusting to a new generation of customers or navigating through new banking rules.
For instance in the US, ever since the 2008 economic meltdown, small financial companies, mortgage firms, and community banks have been struggling.
Price wars and the risk involving borrowers only making 5 percent down payment for their housing purchase as compared to 20 percent ten years ago have made the life for banks and mortgage firms difficult.
In addition, the new rules of the Consumer Financial Protection Bureau or CFPB which brings additional penalty risk due to regulatory non-compliance further rubs salt to the financial institutions’ wounds.
With these trends, financial organizations have to think about how they can optimally serve their customers to keep themselves profitable.
The trend of financial institutions turning to outsourcing for help
Business success nowadays is reflected by how a firm efficiently manages its enterprise in a highly competitive marketplace. And this can made possible by hiring business process outsourcing companies to manage the everyday routine work.
Mortgage service outsourcing is an innovative strategy that offers myriads of benefits to the financial institutions. Through the assistance offered by mortgage process outsourcing service providers, their client firms can deliver optimum customer service and attract home buyers again.
Plus, client companies of these vendors can improve their productivity and to diminish their overhead costs. Let’s look at these advantages more closely:
1. Elimination of the cost of hiring full-time processors
Banks which resort to managing their loan processing team can find this strategy costly and time-consuming. These full-time loan processors not only require high salaries because of their expertise, but they also need other benefits for workers, related equipment, and so forth. All of these translate to more expenses for the bank or the client firm.
However, through mortgage process outsourcing, client firms can significantly decrease their outlay. They will benefit from the service of contract loan processors who are usually self-motivated and are focused on closing mortgage loans, all for the benefit of the bank or their client company.
2. Have trained processors with accumulative knowledge
Outsourcing loan processors involve skilled and experienced staff. Financial institutions are auspiciously given access to their accumulative expertise.
As client firms, they receive the support of highly qualified professionals. These outsourced personnel help them originate and fund more housing loans while at the same time facilitating security and stability for their enterprise.
3. Loans are closed faster and with increased efficiency
Outsourcing back-office loan processors are one of the strategies that an increasing number of mortgage firms and banking institutions have implemented in recent years. This measure has helped them in offsetting any harmful impact of market challenges to their profitability.
The streamlined operations of mortgage service outsourcing firms make their clients’ loan processing businesses more efficient and accurate. Thus, loans are closed quickly and on time. Prompt customer payments are achieved, earning the client a solid reputation and greater competitive advantage.
4. More time to focus on your core competency
Mortgage process outsourcing involves the highly skilled team of the service provider adeptly managing excess tasks. This gives relief to mortgage lenders like banks because they are delegating excessive work to another company.
Mortgage service outsourcing firms help maximize their client firm’s growth and profitability by effectively handling a high volume of time-consuming work. Among them are tax monitoring, origination-processing, mortgage servicing and sub-servicing, and loan processing.
Accounting, post-closing, underwriting, examination, and title ordering are no longer a concern for client firms, too. They can, therefore, have more time to set their priorities more clearly. For instance, they can concentrate more on giving customers better banking experiences, creating new product strategies, and managing compliance risk.
5. Leverage big data analytics and modeling
Mortgage service outsourcing enables companies to gain access to big data specialists. Outsourcing mortgage analysts facilitate the employment of the correct tools for their clients.
Big data pertains to vast sets of customer information used for computational analysis. They reveal human interactions and behavioral trends, patterns, and associations. Some of today’s biggest and most successful businesses in the world like Capital One, Starbucks, Walmart, and T-Mobile depend on big data analytics.
Outsourced mortgage specialists deliver the correct type of results based on their clients’ targets, expectations, and budget. Therefore, client firms can leverage big data analytics to their optimum benefit.
6. Accelerate customer satisfaction
Mortgage process outsourcing specialists have helped many banks, mortgage brokers, and lenders to adapt to the new generation of home buyers and their unique and diverse demands. They concentrate on making the client firms contented. They strive to keep an enduring relationship with them, too.
Financial institutions are, thus, able to receive excellent customer ratings and consequently increase customer leads or referrals.
Why outsource mortgage services to the Philippines
It is highly recommended that you avail mortgage process outsourcing services in the Philippines if you are a business owner operating a mortgage firm. Filipinos are highly adept professionals, capable of performing loan processing work cost-effectively.
Also, there are Philippine mortgage service outsourcing firms which have access to state-of-the-art technology in partnership with other dependable firms. Hence, you can convert fixed costs into variable costs to thrive in the volatile mortgage market.
If you are affiliated with the banking sector or is interested in starting a mortgage process outsourcing business, it is highly suggested to study the advantages of mortgage service outsourcing for banks. These benefits also include how bankers can address the challenges they face in a better way.
Mortgage service outsourcing can certainly help retain loyal clients and increase the loan demand for financial firms.
EMAPTA is a leading outsourcing supplier, specialising in medical transcription services as well as other verticals.