What’s Google have to do with mortgages?
How a recent study of digital expectations relates to lending
As we button up Week 50 until the TILA-RESPA go-live date of Aug. 1, 2015 — the first week of starting project research and budget approval from the Lender Implementation Timeline — let’s take a break and talk about the future beyond TILA-RESPA (which, by the way, is not as far off as you would think).
But why think that far ahead when we’ve got our hands full trying to comply with the immediate regulations?
Well, timing, for one.
Right now, you’re beginning to look at business processes and operations during this research and budget phase of implementation and compliance with TILA-RESPA.
As you draw up that gap analysis of your current state, versus what your business should look like and how it should perform come August 2015, you shouldn’t be focusing purely on a strategy that will only get you to that date. If you do only that, you’re treating technology solutions like an expense, and not an investment that you expect to get a return on.
With that in mind, let’s sift through some info that is out there on the good ol’ net that all of us can consume, ponder, and potentially put into action in some form or fashion.
First, let’s look at how the tech giants have not only had an impact on how we accumulate and interact with data in general, but could potentially throw their weight into the financial industry. An interesting article at RealtyTrac titled “Would you bank with Google or Amazon?” discusses just this very topic.
In that article, they cite a study by Accenture (a global management consulting firm) titled “The Digital Disruption in Banking” which summarizes statistics from their 2014 North America Consumer Digital Banking Survey. Here’s the four key findings that the study points out from their survey of 4,000 North American retail banking customers:
- 27% would consider a branchless digital bank
- 71% percent consider their banking relationship to be transactional rather than relationship driven
- 51% want their bank to proactively recommend products and services for their financial needs
- 48% are interested in real-time and forward-looking spend analysis
So what’s that got to do with Google, Amazon and mortgages? As the RealtyTrac article points out — how about the attention that these, and other big brands such as Apple and Disney, give to the consumer experience? Mega tech-brands like Google and Amazon not only have the deep pockets and relationships to enter the space if they wish, but also have the hardware and software framework of the digital channels required to deliver a trustworthy consumer experience around something like a mortgage.
We specialize in Real Estate in the Pleasanton, Dublin and Livermore areas of the East Bay in California View all posts by kimhuntkw