Our task was to create a comprehensive digital mortgage system, engineered to automate and streamline various facets of the lending lifecycle with minimum to no human interaction. The primary aim was to expedite the loan-approving process, enable better collaboration between stakeholders and borrowers, and deliver a user experience that would redefine industry benchmarks.
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Developed a Digital Mortgage Platform for a FinTech Company
Industry
FinTech
Client Location
UK
Team Composition
5 Dedicated Experts
Key Technologies
React.js, Node.js, AWS, Blockchain
Project Duration
10 months
Project Recap
The Call for a Change
There has been rapid growth in the UK FinTech market and firms are having a hard time keeping up with it. Our client, one of the English mortgage lenders, saw this disruption as an opportunity to boost market share and market leadership.
Their vision entailed using technological advancements to reconfigure the mortgage loan process with a focus on elevating user experience, shortening processing timelines, and reducing underwriting touches per application all the while ensuring compliance.
Mission Overview
As a leading FinTech software development company, our expertise was sought by the client to offer better mortgage terms and solutions than traditional banks. There were two main goals; first, to build a software system that automates the lending procedure and reduces the manual effort traditionally associated with loan origination, documentation, and underwriting.
Secondly, we needed to drastically cut down the time required for loan application, approval, and disbursement to improve customer experience. So, the focus was multifaceted – developing an intuitive user interface with React.js, building a robust backend infrastructure with Node.js, integrating MongoDB for a scalable database, implementing AWS services to enhance security and reliability, and utilizing blockchain for data immutability.
Challenges Encountered
The lending and mortgage services industry is grappling with several critical challenges rooted in outdated systems and legacy infrastructure. The key hurdles we needed to overcome were:
- Users struggled with fragmented processes and a lack of integration between different systems, leading to errors and delays in application processing.
- The average time from application initiation to approval was significantly high, around 45-60 days. This lengthy timeline led to frustration among lenders and borrowers alike.
- There was an overwhelming amount of paperwork and documentation which resulted in confusion and rework during the application process.
- Approximately 55% of borrowers have reported that they are not happy with the lack of transparency and accessibility of the process, especially about the application status.
Project Strategy
Our FinTech developers structured the project into five distinct phases. We strategized and executed each phase to address specific milestones with precision and dedication.
Phase 1 (Discovery and Planning)
The project started with our experts conducting an in-depth assessment of existing mortgage processes, gathering stakeholder requirements, and developing a comprehensive project roadmap, including KPIs, timelines, resource allocation, and dependencies.
Phase 2 (Design and Prototyping)
In the second phase, we created wireframes and UI/UX mockups for user validation and testing. We also outlined the technical architecture of the mortgage system, selected key technologies, and designed data flow and system components.
Phase 3 (Development)
The development phase consisted of three parts – frontend implementation using React for a responsive, visually appealing interface, backend infrastructure using Node.js and integrating APIs, and database management using MongoDB.
Phase 4 (Testing and Quality Assurance)
Our testing and QA experts performed rigorous unit and integration testing on individual system components. We also worked with stakeholders and end-users to validate the platform’s usability, functionality, and overall satisfaction.
Phase 5 (Deployment and Launch)
We deployed the system on the AWS cloud server and provided training sessions and comprehensive documentation for users and administrators. After the launch, we also made some iterative improvements based on feedback.
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Core Features
We wanted to ensure that the online mortgage platform delivers a high-quality experience for both borrowers and lending service providers. So, we equipped the product with a suite of modern features powered by a blend of innovative technologies.
Mortgage Calculator
Our dedicated developers integrated a mortgage calculator that allows borrowers to perform complex financial calculations, estimated loan repayment schedules, interest rates, and loan terms based on personalized inputs.
Automatic Document Verification
We utilized OCR (Optical Character Recognition) technology to automate the lengthy document verification process to significantly reduce manual labor and speed up the verification process.
Real-Time Application Status
By establishing real-time communication between users and automated notification systems, we enabled the app to provide consistent and timely updates on loan status, document submissions, and approvals.
Record Keeping
The integration of blockchain technology into the mortgage system resulted in immutable and transparent transaction records. This ensures data integrity and enhances trust between lenders and borrowers.
Risk Assessment and Credit Scoring
With the help of machine learning algorithms and third-party APIs, the system can assess potential risks and credit scores to empower the lender to make informed decisions quickly and accurately.
Values Highlighted
The mortgage firm’s decision to leverage Radixweb’s software development solutions paid off. Its number of lending partners rose from 30 to 125 and the market share has nearly doubled. With its shift to digitalized solutions, the firm has stood out among lenders and customers.
Scalability and Performance
Leveraging AWS cloud services, we enabled the app for auto-scaling based on demand, leading to a 70% reduction in downtime incidents and ensuring a consistent high-performance platform.
Informed Decision-Making
By implementing robust analytics tools utilizing MongoDB's data capabilities and custom-built algorithms, the client saw a 45% increase in successful loan approvals.
Seamless Connectivity
Using APIs for third-party credit scoring systems and real-time credit evaluations, there was a drastic reduction in credit assessment processing time and a 30% decrease in loan default rates.
Compliance and Risk Mitigation
Implemented blockchain-based smart contracts to ensure up-to-date and accessible record-keeping, reduced fraudulent activities, and minimized the risk of disputes.
Cost Efficiency and Resource Optimization
With microservices architecture using Node.js, the system led to a 40% reduction in infrastructure costs and a 50% decrease in server response time. This optimized resource utilization and reduced expenses.
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