A Year of Technological and Industry Convergence

The promise and early results of innovative advancements—data, technology, AI—is delivering a waterfall of capabilities.  However, these capabilities are often converging, requiring non-traditional integrations at a time with low loan profitability and personnel exiting the industry.  For success in the future, it will be the cross-functional teams who make or break the enterprise—not technology.

For the full article and its graphics, please see –> A Year of Technological and Industry Convergence: Mark Dangelo – MBA Newslink

The 2024 U.S. mortgage industry will continue to face many opaque market drivers in the months ahead—rates, supply, economic, political, insurability, and consumer—all driven by 2023 results that historically represents the least affordable homeownership environment.  However, while 2023 housing sales breaking 28-year low and industry participants struggling for survival, the seeds of industry reformulation are already sprouting across a convergence of skills and technologies—if we know where to focus.  But where Is the focus being concentrated?

For mortgage and financial leadership concentrating on additional efficiencies and revenue operations, suggestions of investment in something new that brings more change, more uncertainty, and more advancements is akin to speaking softly while facing into the destructive and uncontrollable winds of a hurricane.  Specifically, how will these AI/ML algorithmic solutions be created, staffed, designed, and upskilled against rapid-cycle improvements, embedded integrations, privacy-preserving digital assets, growing regulation, and cyber and information security challenges? 

Currently broad-spectrum business and technical strategies assume that AI will represent the kaleidoscope of options and capabilities, which will digitally transform processes and recast product pricing and time-to-completion.  Even with the rising tide of innovation and technology, are the leaders and their teams up for the transformations?

While the enthusiasm and promise of varied AI solutions—generative, general, ML (supervised, unsupervised, reinforcement), RPA, NLP, predictive—has captivated the imagination of CTO’s, the pace of advancements and capability has been nothing short of breathtaking.  For mortgage leaders, the conditions are quickly moving from survival to growth, and the decisions made now will set the conditions throughout the rest of 2024.  The critical strategies and designs of operations are changing underneath the hope for a robust, future mortgage ecosystem.

Creating context for AI, industry segmentation, and tech convergence

Whereas the progression and hype of AI will continue to dominate the headlines, early market solutions and applications will be challenged by scalability, data privacy, legal risks, and auditability.  Yet for all the promise and potential, there is a widespread convergence of technologies and industry requirements into ecosystems of data-driven solutions.  These integrations—embedding, cascading, and democratized—are remaking Fintech offerings and the enterprise software once utilized for end-to-end systems of record (SOR)….