The Pros and Cons of Fintech

July 14, 2021
Makayla Santino

Technology is changing industries everywhere. For many companies, it may be difficult to determine areas to go digital. Fintech is the future of mortgage lending and will prove to be a gamechanger for customer and broker convenience. To fully understand the implications of going digital, it is important to understand the pros and cons of fintech in mortgage lending. 

A first benefit of fintech brokering is the ability to reach a wider audience. Due to the ability to offer remote services, companies that adopt fintech can service a large variety of customers coming from different regions. The service is more convenient for both borrowers and brokers because all information and documentation can be entered online or in an app so there is only a single point of contact. 

Another benefit from the digitization of these services is a quicker and more efficient application and approval process. Companies that have gone digital will typically allow electronic signatures, remote online notarization, and e-closings. Preapprovals, underwriting, and closing times occur at a much quicker pace than those run through more traditional routes. Fintech is also incorporating blockchain and smart contracts, which erase the need for third-party verification. This is one less step, making the process even quicker. Though some may find this risky, customers will be using a secure network that allows for greater transparency and trust. 

Fintech has many advantages, but traditional routes are not yet out of the running completely. Traditional bank routes can still potentially offer customers the best interest rates and contracts based on their needs. A major concern with fintech stems from information security concerns. 

Since there has been rapid innovation and acceleration of fintech in recent years, regulation has not caught up to the technology. To better determine the reliability of the fintech company, its compliance program and readiness to implement controls should be studied carefully.

Another disadvantage of fintech is their youth. Many fintech companies have only been established within the past 15 years. This does not give them a lot of time to truly create customer relationships of trustworthiness that a bank that has been around for 100 years does. 




Langford, Sandra. “Mortgage Lending: Pros and Cons of Fintech.” Wolters Kluwer, 30 November 2017,

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