Almost every business is taking the digital-first route and increasing productivity, integrating their systems and managing workflow by using different technology.
With this drastic technological shift, the Indian mortgage industry has also begun treading on the digital path to make mortgage finance future ready.
As the industry is still on the tip of the iceberg in adoption of technology, there are many concerns and roadblocks that the mortgage sector is facing.
To discuss the pitfalls and solutions, the India Mortgage Guarantee Corporation (IMGC) and CNBCTV 18 hosted India Mortgage Leadership Conclave (IMLC), in which the second panel discussion deliberated about ‘Risk Transformation: Role of Analytics & Technology’ and gave insightful learnings to the gathering.
The panellists Anil Mehta, CEO&MD, India Shelter Finance Corporation Ltd.; Monu Ratra, CEO, India Infoline Housing Finance, Rajinder Singh, Chief Risk Officer, Global Mortgage Insurance, Genworth; Vishal Goyal, Country Manager (South Asia) FICO; and Pranay Mehrotra, Partner and Director, Boston Consulting Group discussed on importance of digital technologies, how to service customers online, the role of data and how to acquire talent. The session was moderated by Prashant Nair, national news editor, CNBC TV18.
“There is increasing use of technology. However, there are many ecosystem gaps in our industry. First is the talent that is hardly available, second is the digitisation of the outside world, and third is the regulatory overhang,” said Mehta.
The experts said there is fluid environment, patchy systems and data is not being used across the companies.
“There is immense room to create digital systems. Presently, there is nothing available off the shelf to use. Digitisation is about reimagining the entire work flow, invest lot of effort and serve the customers to the optimum. Digitisation also gives you the ability to scale up,” said Ratra.
Technology can streamline various areas in the mortgage sector and there is a need to have an integrated management, right decision making and hygiene reason for survival. The digital mindset has to be shared from top to the bottom of any organisation.
“It is important to have a decision framework or a platform where you can take decisions at all point of time and not just origination. Any changes, for instance in economy, can impact your portfolio. Hence, it is important to make portfolio management easy. In a nutshell, if you make connected decisions across your portfolio, people should be in good shape, which can happen by taking the digital route,” said Goyal.
Moreover, the mortgage sector can use new technology and analytics in writing home loans, reducing costs, managing portfolio, repayments, etc.
“The availability of tech is no longer a constraint. Technology is as good as the user, so how do you make tech ready at each point of functioning is important,” said Mehrotra.
The runway for growth is tremendous in mortgage sector and tech can further enhance it. Data has huge learning for Indian markets.
“What we need right now are data scientists who can come up with data insights and actionable points that can help us in enhancing productivity, quality, assessment, and reduce inefficiency,” said Singh.
There’s always an answer in the data to most of the business problems and the mortgage sector is open to experiments and risks.
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