Reduce Mortgage App Friction by API’s Aka Open Banking

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Dharm Singh, CEO

Dhram Singh – CEO and Co-founder of Agile Soft Systems, a professional IT Services company based in Silicon Valley with offshore development centers in India.

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Reduce Mortgage App Friction by API's Aka Open Banking

Applying for a home loan is a daunting process across all income groups. Yes, that is true. One may think that well-heeled borrowers are given an easy pass….. Well think again.
The amount of paperwork and due diligence done by the underwriter is applicable to all.
The only loans with the least amount of paperwork are hard money loans. Go figure!

Fortunately, open banking API’s have come to the rescue to make the home loan process a bit friction-less.

Open Banking Enhances Access to Financial Data

Open banking is impacting how mortgage lenders operate, making the application process simpler and faster and reducing the number of processes required. Additionally, lowering the number of data points that must be manually collected and reviewed can boost profitability by lowering administrative costs for each individual loan application.
By giving access to more information to improve lending decisions, open banking automates matches between lenders and loan applicants for loan brokers.

In the US, more than 3 million customers and businesses today utilize products that support open banking, and the success of the mortgage industry in the future will depend on lenders’ capacity to adopt and apply open banking tools to boost productivity, customer service, and scalability.

APIs to Provide a Seamless Mortgage Experience

APIs are rapidly increasing across all industries but are particularly noticeable in financial services. For example, the annual RapidAPI Developer poll, performed at the end of 2020, found that 69% of respondents thought that using APIs in the financial services industry increased in 2020 compared to 2019 and that 77.3% expected that trend to continue in 2021-22.

APIs can be created to, among other things, query data, update databases, or add functionality to software applications. Their functionalities vary.

These days, mortgage firms use them to combine different solutions to get the functionality they require and build a technology ecosystem that facilitates automatic system communication. They can also assist mortgage lenders in utilising various platforms to benefit from functionality that best satisfies their requirements.
One of APIs’ greatest advantages is workflow automation, which helps save expenses, staffing requirements, and error rates while giving borrowers quicker access to updated loan and statement information. Additionally, mortgage lenders can offer the consumer a smooth experience across the full mortgage journey by selecting the appropriate platform that permits the integration of various systems or applications.

How Can AgileSoft Systems Inc. Help You?

In a period of digital transformation where mortgage lenders frequently struggle with a lack of time and resources, increasing productivity through open banking and API integration is crucial.

We at Agile Soft Systems know the importance of interconnectedness between different technological areas, how they operate, and how we can support your company in taking advantage of them. As a result, lenders boost productivity, cut expenses, raise customer satisfaction, and successfully manage future market shifts by implementing the most recent API technology.