Recent years have seen the biggest challenge to the mortgage industry as the lockdown and isolation has caused a tremendous downgrade in terms of competition in prices as well as increase in loan applications.
On top of that, changes to regulations to The Council for Fair Business Practices mean more risks of penalty for not complying with their norms.
As a result more banks and mortgage companies have started outsourcing to BPO companies who can take care of all tedious work starting with accounting or processing of the loans or appraisal of the property or title examination and title insurance and title ordering to closing the deal too quickly.
This has helped the Banks and Mortgage lending companies to keep the cost of the loan at the lowest because hiring an expert in India to do all this costs a fraction of what it costs in the US.
In this way they can handle an increasing number of loan applications with ease keeping their customers happy at the same time.
Since the economy started going down during the lockdown due to Pandemic, it has become crucial to save the costs but the expertise of BPO companies outsourcing their work helps maintain the high standards at the same time which is equally important.
This outsourcing can benefit not just big banks but also smaller community banks and lending companies who can also cut their costs considerably by hiring an expert company in India to handle their ever increasing number of loan applications.
For example, the cost of maintaining an office and staff working on these loan processing is half as economical when compared to that of the US high rents and employee salaries etc.
Their overhead expenses like bills to pay electricity or WiFi is way lower than what they pay in the US.
Higher efficiency is always expected from employees in India when compared to US employees demanding higher facilities but not being as polite or accurate.
As a country of polite culture, Indians have earned a better name and fame internationally that they can handle customers more efficiently through their endless patience and perseverance as against arrogant customers who demand a quick and polite service.
The service is faster too thus allowing the managers of the big companies to relax with lower workload as they could not handle the increase in the number of loan applications after the economic crisis brought over by the Pandemic.
Now they can devote their extra time to customer satisfaction so they won’t lose dis-satisfied customers to their competitors.
The competition could not get any tougher than it’s now in the days of lockdown due to Pandemic.
It’s a pricewar out there for the survival of the fittest.
All their menial office work outsourced to experts who charge less than half of what is charged in the US, the Banks and Lending Institutions can now concentrate on other things like improving their services through AI or streamlining their efficiency.
There are less errors and no fear of CFPB fines.
Now they can have more time and less stress in their personal lives giving them enough time to concentrate on implementation of planning their overall future improvement instead of struggling with the highest increase in the number of loan applications in the history of the Banking industry.
Usually it is a headache for the senior employees to process the too many loan applications in the days of poverty induced by corona joblessness and homelessness.
It is not an easy task to decide the fate of a loan applicant and it can be very stressful because it’s not a simple yes or no.
Leaving it to be taken care of by BPO companies cuts down the cost of overall expenses and improves the image of the Banks and Lending companies by making them faster and more efficient with higher stability.
Top benefit in outsourcing mortgage processing to professional BPO companies is saving the overhead costs as follows:
1. Cut Extra Expenses(Salary, Infrastructure, Rentals)
- Saving on the salaries to senior employees who can handle mortgage processing efficiently.
- Saving on office rentals. Banks and lending companies can use smaller premises requiring just the key staff to receive loan applications.
- They can relax and focus on customer satisfaction so they won’t lose their customers to their competitors.
- Lesser infrastructure required. Fewer computers and desks are required.
- Bills are cut down, saving on electricity and heating expenses.
- Less coffee or tea.
- Less cleaning expenses.
- Transportation cost is cut down on a lesser number of employees using their vehicles on the road.
- Lesser pollution in the streets as less petrol will be used by lesser employees in the streets.
2. Handle More Applications in Less Time
Outsourcing mortgage processing can help the Banks and Lending Institutions to handle more loan applications in less time.
- Faster service can be assured as professional service is always at hand.
- They can also expect more polite customer service from countries like India who are more likely to increase their business by their efficiency in handling mortgage processing.
3. Handle More Loan Application at a Fraction of Cost
- More loan applications can be handled at a fraction of the cost in the US.
- Customers will be happier to pay a lower processing fee on their loan applications.
- Customers can chat with professional mortgage experts who are more polite and fast acting to get their loans than their US counterparts with less patience and perseverance that comes inherently by having grown up in a rich country like the US.
4. Save More Time
Managers and other senior staff at the Banks and Lending companies who are outsourcing their mortgage processing will have more time on their hands.
- They can devote their extra time to build up better customer relationships so they will have the benefit of not losing them to their competitors.
- They will be less stressed giving themselves more energy to deal with streamlining the overall functions of their respective organisations.
- Basic functionality of the Banks and lending institutions can benefit having more time on their hands to improve their overall functionality and efficiency.
5. Helps Small Scale Lending Businesses
Even smaller community Banks and Lending Institutions can benefit by outsourcing their mortgage processing services.
- This will help them to grow into bigger and better institutions by providing faster and more efficient service.
- Outsourcing will help them to cut their costs of loans to a bare minimum which will make their customers happy as well.
Having listed the top key benefits of outsourcing the mortgage processing services by smaller or larger Banks and Lending Institutions as above clearly shows that it’s beneficial to outsource the above services in terms of cost and efficiency.
It’s also timesaving for the Banks and Lending Institutions as well as their customers who will be happy to get their loans processed quickly which is crucial in the times of economic crisis created in the difficult times of Pandemic.
It’s the need of the hour to help the customers as quickly as possible which will grow the business of the Banks and Lending Institutions at the same time at lesser cost and higher efficiency.
A country can prosper with such better service cost cutting at the same time.
Best thing that can happen to all concerned!