Fiserv unveils new digital mortgage product, giving credit unions a leg up
- As mortgages move online, Fiserv has developed a digital solution.
- Credit unions stand to gain, lending more to their current customer base.
Fiserv has announced its own digital mortgage lending solution for financial institutions.
Fiserv unveiled Mortgage Momentum, a new digital product to help lenders streamline the mortgage lending process. This service will be coupled with the company’s existing mortgage lending products: Mortgage Director, a loan origination system, and Originate Mortgage, a mobile point-of-sale application.
Credit unions get a boost: Fiserv has deep inroads into credit unions. According to the company, one-third of U.S. credit unions depend on Fiserv for their core account processing technology, the backbone for daily banking operations. This comes as credit union leaders increasingly recognize the need for technological improvement, as budget increases in digital solutions are taking effect across the industry.
CU mortgage growth: Credit unions are also ramping their mortgage businesses. Callahan & Associates, a credit union research and consulting firm, noted that loans by credit unions in Q3 2018 reached an all-time high, with first mortgages accounting for 40.9 percent of the lending total, equating to $424.6 billion in balances.
A report from Radon Research found that those who utilize a credit union as their primary financial institution plan to use that same credit union for their mortgage 83 percent of the time. With a strong backbone of potential customers, Fiserv’s Mortgage Momentum stands to capitalize on digitizing the application and lending processes, improving customer experience and reducing lending times.
Additionally, credit unions can compete with retail banks in acquiring new customers (who appear to be increasingly fed up with their current financial institution) that expect such digital solutions as the new normal.