APIs: Enabling game-changing results with today’s digital mortgage technology

In the race to provide the best possible consumer experience, lenders and other financial institutions are looking to advancements in digital mortgage technology to deliver differentiating products and services. It’s no secret that the industry is rapidly advancing toward digitization to meet the growing demands of today’s consumers. In a tight market, attracting and retaining customers is key to success. Research by Salesforce shows that 76 percent of customers say it’s easier than ever to take their business elsewhere in order to find an experience that matches their expectations. That means to retain them, companies have to provide added value beyond what consumers want and need.

Technological advancements are already driving up homebuyer satisfaction levels. A recent LendingTree study finds that since 2017, the average number of days it takes to close on a home in the U.S. has nearly been cut in half. Consumers are getting into their new homes quicker because the consumer digital experience now extends beyond application. Innovative fintechs are now enabling a digital experience that extends throughout the entire mortgage experience: from application through servicing. Cutting edge platforms that offer digital scheduling capabilities and other consumer-driven features are leading the way in terms of productivity, performance and satisfaction.

All of these advancements however wouldn’t be as revolutionary without three important words: Application Programming Interface (API). APIs are baked into nearly every application on our laptops, tablets and smartphones. As Forbes put it, “APIs have become the essential connective tissue that enable companies to securely and quickly exchange data and information with the outside world.” Since APIs allow one computer program or application to be used by others, they are quite literally the building blocks of technology. They offer incredible amounts of functionality which is why more companies than ever are using them to elevate their connectivity and consumer offerings.

A study by MuleSoft[1] finds that 72 percent of enterprises have API strategies. The company’s Connectivity Benchmark Report shows that revenue generation is one of the key benefits that APIs provide to businesses.

  • Generate revenue 30%
  • Enable affiliates 21%
  • Engage external developers 19%
  • Enable partners 18%
  • Agility 7%
  • Drive innovation 3%
  • Enable applications 1%

Besides bringing in new revenue streams, APIs are used to deploy apps quickly, leading to innovative opportunities. “Today’s companies need to be agile. With APIs, companies can quickly pivot to new verticals and adapt to changing customer expectations, market dynamics, and technology trends,” cited Forbes. “The results are game-changing. It’s no surprise that 34% of companies use APIs to improve speed-to-market and innovation.”

APIs also have the ability to further enhance the customer experience. In this world of growing expectations, a highly tailored service encounter can significantly drive up brand loyalty. In fact, studies show that 80% of consumers are more likely to do business with a company if it offers a personalized experience. By delivering a more interactive and intuitive user experience, APIs can boost satisfaction and retention rates.

Moving the Mortgage Industry Forward

These behind-the-scenes “game changers” have been around for years but continue to transform the mortgage origination process. APIs help lenders use multiple platforms to process home loans more quickly. The Scotsman Guide puts it this way, “APIs let mortgage professionals seamlessly order fulfillment services from various service providers or share data across platforms. This allows users to remain in one system to provide support to their customers.” The end result: increased efficiency and fewer errors. By providing real-time access to pertinent loan information, APIs deliver on what consumers want most during their home buying journey: transparency and convenience.

As the Scotsman Guide notes, “Most mortgage professionals will benefit from implementing APIs because they can help them more easily build on existing functionality and create custom solutions without the need to switch or upgrade platforms.”

EXOS utilizes APIs that seamlessly plug into our clients’ digital ecosystems. The result is that EXOS complements or extends their digital strategy in as little as 90 days. Moreover, it doesn’t replace the existing foundation for a digital mortgage solution: it enhances it, with minimal friction and maximum up time. Learn more at exostechnology.com.

 

Contributors: Sarah Kapis, Patrick Corwin

 

The material presented herein is of a general nature; opinions expressed herein are subject to change without notice. The information was obtained from sources deemed reliable. Such information is not guaranteed as to its accuracy.

[1] MuleSoft Connectivity Benchmark Report: Enterprise’s Connected Future: APIs on the Rise, July 2015