Technology Innovation and Investment Considerations in the Canadian Mortgage Market
Key Findings from Celent's Canadian Mortgage Technology Adoption Survey
The mortgage market in Canada has been growing strongly over time, and is now facing a period of technology-enabled transformation. The landscape is becoming increasingly competitive, and this is driving many lenders to re-evaluate their products and the experiences they offer to both intermediaries and direct applicants.
Indeed, 80% of lenders believe that winning business today is more challenging than it was a year ago. As a result, it is not surprising to see that improving the customer experience and growing sales to new customers are the two most important strategic priorities for 2022.
To better understand the scale of the changes ahead in the Canadian mortgage market, Celent conducted a survey of lenders at the beginning of the year. This was aimed at identifying the current challenges facing the market, as well as the areas in which lenders were prioritising their technology investments in the coming year. Some of the key findings from this study include:
- 75% of lenders are growing their IT spend in 2022, and 60% expect to make major change to their loan origination system (LOS) within two years.
- Improving service to intermediaries, improving speed of approvals and decisions, and speeding up application processing are all core priorities.
- Within this, the biggest focus will be on digital signing and contracting, better leveraging existing data to enhance the experience, and digital document processing.