What comes to mind when you see the following statistics?
$14,989 billion – Outstanding US mortgage as of March 18.\
$3,822 billion – Outstanding US non-Mortgage retail loans as of March 18.
The mortgage market is almost 80% of the entire $18,811-billion retail loan book!
As the largest segment in retail lending, mortgages should be the focus of innovation and digital transformation, right? That doesn’t seem to be the case (or maybe it’s not effective).
After the global financial crisis, mortgages came under heavy scrutiny by new bodies like the CFPB. Banks were reluctant to lend (or perhaps couldn’t), so not much time or attention was devoted to mortgage innovation. Mortgages primarily need improvement in customer experience.