Mortgage business intelligence. The term sounds daunting, but it doesn't have to be. For mortgage lending companies, the idea of using a business intelligence platform is growing.
Why? Because the world of lending is a complex one that's changing all the time.
The more key performance indicators (KPIs) a company can take a look at, and the more information it can collect, the better able it is to chart a course for success in the marketplace. Here's what you need to know about the value of business intelligence in the mortgage lending sector.
Breaking Down Mortgage Business Intelligence
The mortgage industry is unlike any other. Its health is an economic indicator thanks to its close ties to the housing market, and it's also an area where there's a lot of scrutiny, oversight, and regulation. Because it's so unique, lenders need a unique data analytics solution to optimize operational efficiency.
That's where business intelligence comes in. Most BI solutions are designed for businesses that don't operate in the same way as mortgage lenders. Mortgage business intelligence is based on the specifics of mortgage lending, as opposed to broader BI solutions that would work for several types of businesses. A generic solution won't be effective in an industry that's very specific, and mortgage companies need BI solutions that fit their needs.
For any mortgage lenders who are contemplating using a business intelligence platform, there's a lot to consider. Gaining a competitive advantage, for example, is easier with the right BI solutions. Being able to see performance metrics in real-time and can help any mortgage company develop a better understanding of what it’s doing well and what processes could be improved. Data is valuable, but only when it's analyzed and used in a way that helps the industry.
Benefits of Implementing Business Intelligence in the Mortgage Industry
Fortunately, there are a lot of big benefits to implementing a BI solution for mortgage lenders. Those who adopt a business intelligence platform they can trust and rely on are finding that their turn time is shorter and their business decisions are easier to make.
Real-time performance metrics allow mortgage lenders to respond proactively, not reactively, to shifts in the market as well as keep their mortgage companies viable and adaptable for the future. Consider the value of the largest benefits of BI for a mortgage lender:
Benefit 1: Making Data Digestible
To make quick, sound decisions, lenders need more than raw data — they need to be able to understand and interpret it. That’s why data visualization is one of the most important elements of any BI tool.
Identifying useful business insights in a raw dataset — whether that’s a spreadsheet, database file, or other formats — is like finding a needle in a haystack.
Data visualization makes information easier to parse, provides useful context, and makes it easier to see trends over time. Well-crafted graphs, diagrams, fever charts, heatmaps, and other infographics can make important data insights practically jump off the screen, eliminating the need to comb through thousands of individual data points and draw conclusions by hand. This makes it possible to make well-informed business decisions at lightning speed.
It’s worth noting, however, that not all data visualizations are created equal. They are only useful for making business decisions when they accurately portray the underlying data and are free of unintentional biases. That’s one of the reasons it’s so important to use a mortgage-specific BI solution It takes an industry insider to understand what mortgage operations data should be visualized (and what should be omitted), which datasets correlate with one another (and why), how the data should be scaled to prevent misleading analysis, and so on.
Benefit 2: Increased Efficiencies
Efficiency is one of the biggest benefits of a BI solution that's specifically designed for mortgage lenders. The ability to be efficient and effective is vital in a highly competitive industry that often works with large amounts of data and money. Inefficiency could also mean delays in the lending process, which could cause clients and potential clients to make the move to another mortgage lender. By shortening their turn times, lenders become more desirable to people looking for a mortgage, and that improves their bottom line.
Benefit 3: Improve Revenue & Profitability
The right solution for mortgage business intelligence helps mortgage companies bring in more revenue and makes them more profitable. These companies are all competing with one another for business, and the decision to choose one lender over another is based on more than just the interest rate. The fees the companies charge, how well they handle any bumps in the road, and their ability to get the loan completed with an appropriate timeline all matter in the marketplace. A strong BI solution is the key to that.
Benefit 4: Pipeline Management
At any given time, there may be hundreds or even thousands of mortgages in the pipeline for a large lender. If the lender has branches nationwide, that number could stretch into the tens of thousands.
Keeping all of those mortgages straight, understanding where each one of them is in the process, and ensuring that they are all moving forward is far more than a full-time job.
But with the right solution for business intelligence, it's much easier to see the status of each application, what the next step is, and any issues to solve.
Benefit 5: Measure Performance
Performance matters, whether it's the performance of the mortgage company as a whole or specific people in it.
Because of the fast-paced and complex nature of the mortgage industry, lenders can best evaluate performance by defining specific success metrics and performing data analytics. Having all of that in one place makes it much easier to determine how individuals are doing within the company and how the company is doing as part of the larger marketplace.
Benefit 6: Incentivize Success
People like to be rewarded, and mortgage lenders are no different. Success should be recognized because that kind of recognition often leads to increased performance and job satisfaction. But the only way to be clear on the level of success achieved by mortgage companies and specific professionals is through data analytics —specifically, performance metrics.
All of those pieces of information are collected, handled, and processed much more easily with the right software. Not only does that mean ease of use for acknowledging success, but also for getting to the bottom of any areas where success may be more elusive. Companies that can measure success and determine where they need to see more of it will be stronger in the mortgage industry.
Transform the Lender Experience with LimeGear
With the best software solution for their mortgage company, lenders can have more confidence in their data analytics and can make better-informed business decisions, faster. That's what LimeGear can offer. This cloud-based business intelligence platform for the mortgage industry takes the information it collects and provides metrics and knowledge in real-time.
It's fast and easy to get the information a mortgage lender needs to stay on track in the industry and remain competitive. Designed specifically for the mortgage industry, LimeGear is the BI solution mortgage lenders can count on.
For a complete tour of LimeGear, schedule a demo today.