October 2016 - Changing of the Guard

TheMReport — News and strategies for the evolving mortgage marketplace.

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Page 27 of 67

26 | TH E M R EP O RT FEATURE into multiple database assets. For example, origination data has typi- cally been stored in one database, servicing data in another database or many databases, and external data (such as procured public records data) stored in yet another database, and so on. Mortgage organizations have long tried to merge external data records with internal information in an effort to better serve their custom - ers and, when possible, to predict customer behavior (such as the likelihood of mortgage loan prepay- ment or default). However, while these efforts may have produced useful information, it has been an unwieldy and time-consuming process—especially for institutions working with 20 or 30 databases. In the absence of a Big Data platform, the responsibility of look- ing for golden nuggets of real intel- ligence has typically fallen on the shoulders of analysts. Often using manual processes, analysts would select and pull datasets from various sources, move them into a spreadsheet tool like Excel, and then analyze the data in the hope of finding meaningful insights and actionable information. However, this approach is something like trying to mine gold with a spoon. It is difficult at best, and the results may only be of marginal benefit to the organization. Instead, the industry needs the ability to seamlessly leverage all the data—both internal and exter- nal—that's needed not only to help solve targeted business problems but also to enable tangible business results. In an industry comprised of a vast and complex network of connections, variables, and pos - sibilities, anything less is failing the mortgage enterprise. The Power and Promise of the Big Data Platform T echnology has evolved to the point where one com- prehensive Big Data platform is not only possible, but it is equipped with the computing power needed to support the mortgage industry's demanding environment. Today, institutions can tap into the many advan - tages of a Big Data platform, including easy access to both client and public information data, far more quickly than previously possible. Certainly, the ability to access all needed data records from one platform is beneficial in its own right, but the sophisticated analytical tools that are also acces - sible through a Big Data platform offer the ability to combine and analyze data elements that may never have been looked at before. For example, today's business intelligence tools can provide financial institutions with the ability to look across their opera - tions to identify individuals and branch operations that are exceed- ing expectations and understand how they are accomplishing those outcomes, as well as identify areas of the organization that are not meeting performance standards and the key factors that are as- sociated with those results. And this information is available in near real-time, anytime. Beyond the operational improvement opportunities are the insights that enable financial institutions to better understand and react to the needs and circumstances of their customers. By leveraging a Big Data platform, institutions can link customer mortgage data from various sources, such as an origination system and a servicing system, and then link in data from exter - nal sources of information such as public records, social networking, and mobile data to see a more complete picture of their custom- ers. This allows the institution to proactively deliver well-timed and well-targeted offers to their cus- tomers and in the process, retain and grow revenue while helping to strengthen customer loyalty. This access to a fuller picture of each customer has many benefits that add up to create a great customer experience. Not only does this intelligence allow customer service representatives to really consult with their custom- ers about products and services that may be beneficial to them, but also it allows each customer to be seen as a unique individual and provided with the kind of proactive service that makes them feel that way. Actionable Insights T he power of Big Data is not just about generating informa- tion, but it is also about the ability to utilize actionable insights to actually trigger appropriate events. For example, in today's typical operation, information about a delinquent customer may show up in a report, which is then handed off to someone to initiate the appropriate actions within their technology system. A Big Data platform can automatically push that delinquency information into the appropriate user's system so that the needed actions can be seen within the system and allow - ing those actions to be handled much more quickly and efficiently. Imagine the power of these capabilities as they operate across the entire mortgage lifecycle. With the ability to link relevant data together, such as a customer's servicing records with public records data that shows that his or her home has been listed for sale, an alert can be sent directly to a loan officer's desk or mobile device for action. The loan officer can then make an outbound call to that customer, perhaps with an offer to pre-qualify him or her for a certain loan amount that will be useful as the customer shops for a new home. Since it is generally known that the first mortgage company to talk with a customer usually gets the loan, this can represent a tremendous advantage for lenders. This is just one benefit in a vast pool of possibilities. Driving Data Quality Improvements I mproving the quality of data by utilizing Big Data capa- bilities to compare information across internal and external In the absence of a Big Data platform, the responsibility of looking for golden nuggets of real intelligence has typically fallen on the shoulders of analysts.

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