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October 31, 2023

Innovation is a Team Sport

How do lenders assess whether their partners are capable of supporting them in their pursuit of technological innovation?

We have spoken about how important it is to choose the right technology partner when you start stepping into generative AI, or any AI-powered technology for that matter. This is true for more than just these edge cases.

Any innovation lenders hope to bring to their business, partners, or the customers they serve will only be achieved through a strong partnership with their technology provider.

We’ll talk about why that is true in this post and how lenders can determine whether the partner they have now can support them on their journey.

Why innovation is a partnership

Over the years of developing technology and successfully implementing it for the lenders we serve, we have found four approaches to the new technology initiative process. All of these approaches can be successful, but they require careful planning, constant communication and strong leadership.

Vendor-driven approach

Many vendors think they know the answer to innovation and take the lead. This often happens because the vendor has a limited offering and can’t afford the lender to drift beyond its capabilities. The result of this is that lenders often find themselves trapped in workflows they didn’t design and that don’t offer the value they require. Innovation never starts at the vendor. It starts with the lender.

Consultant-driven approach

While there are many skilled consultants in the market who are proficient in, the technology offerings available, consultants cannot fully know both the lender’s vision and the vendor’s capabilities well enough to drive innovation. They can be great at keeping projects on course, but that course is best set elsewhere.

Lender-driven approach

There are some technology providers in the market that won’t even consider this. They know how their software works and how they expect the lender to use it. We’ve already talked about why vendors should lead here. But they do have a point in that lenders won’t always understand the constraints required to operate a platform in a fully compliant manner. Nor will they always know everything a vendor could possibly do for them.

The lender-vendor partnership

While we would never suggest that the consultant be removed from the process, we have found that the best path forward for a lender is developed in close partnership with their chosen technology partner.

This makes successful technology innovation the product of a strong partnership.

How to know if you have the capacity to innovate

It’s not possible to walk into a laboratory and come out with an innovative new idea that any lender can put into play. You need a good technology partner to make it work. Here’s how you can tell if you have the right technology vendor on your team.

  • Does your partner have the capacity to take on new projects?
  • Does your partner understand the totality of compliance requirements?
  • Does your partner understand the latest technology, including AI?
  • Does your partner truly understand your needs and aspirations?

Ultimately, the only way to know for sure is to find out what kind of innovative lender ideas your partner has helped its lenders bring to life. If you want to learn more about our capabilities and find out how easy it would be to bring your vision to life through a partnership with Mortgage Cadence, reach out to us today.

By Jim Rosen, EVP, Services at Mortgage Cadence 

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Media Contacts

Mortgage Cadence: 
Alison Flaig 
VP, Marketing 
(919) 906-9738