When I think about a modern-day checkout experience, I picture someone looking at the products on offer, choosing one, and then getting it. Until recently, the data and computing infrastructure needed to power that kind of simple, streamlined process in our industry didn’t exist. That’s changing. Blend’s new one-tap technology is our answer to the modern checkout experience for consumer banking products.
Financial institutions often either don’t know enough about their customers or the data they do have is locked in silos, lying inert when it could be put to better use. To fully leverage all available data, we’re working closely with lenders and partners to build a complete financial view of their customers. Our first offering based on this work is One-tap Pre-approval for Mortgage.
Automatic access to verified buying power
In order to understand their buying power, consumers often start by getting pre-qualified. More often than not, they receive something that’s more of an estimate of their buying power, usually based on limited information. The process doesn’t include verifying employment, credit score, assets, liabilities and income, and everything else needed to make a confident offer on a home.
Getting that complete picture is harder and often very slow. The consumer has to track down a mountain of documents and monotonously input their data. For the lender, it often takes days to package all of that information before manually completing verifications and calculations.
Blend can now automatically help lenders verify a consumer’s data using existing account information and third-party sources. The result is a dramatically shorter, simpler mortgage approval process.
There’s no tedious application. No emailing documents. Just a verified pre-approval letter a seller can completely trust.
The consumer gets an immediate understanding of their buying power, the freedom to easily adjust their bid price, and the ability to quickly download their pre-approval on the spot. With One-tap Pre-approval for Mortgage, lenders can now provide consumers with the best and easiest way to find out if they can afford a house at 10 p.m. on a Saturday so that they can shop confidently on Sunday.
The new industry standard
Empowering financial institutions to instantly verify assets, income, employment, and liabilities at the beginning of the origination process will significantly reduce the amount of paperwork to review and save time for the lender.
That opens up room in the process for loan teams to focus on what matters. LOs, for example, can and need to be so much more than master paper processors. Consumers will see them as trusted advisors who guide them through the biggest purchasing decision of their life. By removing friction and providing transparency, lenders can build trust and increase the likelihood of closing a loan.
Using this verified data also sets the stage for automating even more of the process, which we’re working on right now.
For more than mortgage
Our one-tap technology will eventually decrease decision time for lenders and increase customer satisfaction across all consumer banking products. Whether it’s applying for a credit card or refinancing an auto loan, a one-tap pre-approval can make the process far more frictionless.
Financial institutions deserve tools that empower them to act proactively, stepping in to suggest products that help their customers move their goals forward. Blend is designed to help lenders deepen their relationships with their customers and enable proactive, goals-based lending experiences that create customers for life.
Building our one-tap technology wasn’t a decision we made last year or the year before. It’s taken thoughtful, methodical planning over a long time horizon. It’s meant building an organizational structure that plugs into the complexity of the mortgage industry, designing for compliance by default, and preparing for growing complexity in our product. Most importantly, it’s required us to partner closely with our customers to align around a common vision for the future of lending. We’re grateful every day for their support.