Bahaa Abdul Hussein has his views on how fintech has revolutionized the financial sector. Fintech is also being used in the mortgage industry offering many benefits. Over the last 10 years fintech has been growing exponentially in countries like Canada.

Fintech is helping mortgage professionals through the use of technology in processes like digital lending, process automation, artificial intelligence, and payment solutions.

The Role played by COVID

“While fintech has been on the upsurge over the past decade, the COVID-19 pandemic has actually helped the industry. During the pandemic, the lockdown and the social distancing norm led to businesses operating online. This actually spurred fintech implementation in the mortgage business.”, said Bahaa Abdul Hussein in one of his speeches.

Another significant development that led to the acceleration was that the volume of mortgages increased during this period. To cope up with this situation, mortgage companies started using technology. Digital solutions were offered to ensure online mortgage activities.

Why fintech mortgage companies are doing better?

As per Bahaa Abdul Hussein, Mortgage companies using fintech are doing better than traditional mortgage companies. The use of technology offers many benefits in the mortgage sector, which are summarized below:

  • The use of fintech allows mortgage companies to work faster as compared to traditional companies. As much as 14 days can be reduced from the closing process by using technology.
  • A major reason mortgage companies using fintech are doing well is that they offer affordable interest rates. The interest rate charged by traditional companies is more because of their increased operational costs. The use of technology helps to reduce such costs. As a result, they can offer lesser interest rates. This is the benefit of customers and consequently, the business of such companies would increase.
  • Fintech mortgage companies are offering flexible requirements than traditional companies.
  • Fintech mortgage companies are able to offer an enhanced customer experience. This has helped such companies to do well. The improvement in customer experience has helped to build trust with the customer. This has helped them enhance their business.
  • There is a fear about security risks in technology. Fintech mortgage companies are building systems that use technology securely. The improved security helps to enhance trust that has a direct correlation to improved business.

Companies using fintech in the mortgage sector are essentially disruptors. The disruptive innovation is opening up opportunities for them, which explains why they are doing well. The use of technology plays a major role in reducing instances of fraud. Open banking is an upcoming innovation which will further help the mortgage sector grow.

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