DS News spoke with Jennifer McGuinness, Co-Founder and Managing Partner of Strategic Venture Partners, during the Five Star Conference on the future of fintech and the challenges it faces moving forward.
“In the fintech scape, what you really want to focus on is the lifecycle of origination, asset management, and structured finance needs to be optimized,” McGuinness said. “The technology solutions that are going to bring the best benefit to the businesses are going to be those that manufacture things more efficiently, cut timelines, risk insolute process flows, to actually optimize outcomes, and at the end of the day, it’ll actually save the companies a vast array of money and compliance issues.”
She added that the more the industry digitizes the mortgage experience, the more fraud insulation there will be. She added that it will bring better underwriter outcomes and shorter timelines for lenders, which will bring more closed loans, more revenue—a benefit for both the borrower and investor.
“Some of our legacy technologies are less nimple, so they’re not necessarily open to solutioning. In addition, what you also see is that older technologies—for example, some of the banking institutions are still running Microsoft Word 97, or Excel 97. You try and take a newer technology and integrate that, it doesn’t work,” she said.
McGuinness added that she expects some of the more web-based technologies will be more optimizing for people, along with systems that don’t need to be integrated, will provide a “more blanketed approach” for users.
McGuinness served as the director of the Fintech Lab during the Five Star Conference and Expo. Subject-matter experts discussed the latest advances in financial technology, and how these innovations are being implemented to streamline processes, increase transparency, and reduce costs across the financial services sector.
Participating companies in the Fintech Lab were Flagstar Bank, Stream Loan, Altisource, and Auction.com.