It is a new year and with it has come some very dramatic change in banking and our economy. I am writing this post to provide a market perspective from the point of view of a technology vendor, selling lending solutions to large enterprise banks. Things recently have been chaotic in our business, to say the least.
In 2008 the mortgage business more or less collapsed. The list of the top ten depository banks by mortgage originations from 2006 has since consolidated down to just six names. Much of this seemed to come out of the blue. We had a meeting last year with executives at one of these banks, at what appeared to be the end of a successful four month sales process. They emphasized over and over how positive their business outlook was. At the airport on the way home, CNN broke the news that the same bank we had just met with was in a forced sale to another large bank.
On a more positive note, all of the chaos in the market has also created an environment where banks are looking at offerings from technology companies like ours because of the efficiency and immediate ROI we can deliver. This year, we have already had several very promising meetings and February travel is almost totally booked. It is a little early to tell, but we hope the silver lining in all this turmoil will be greater adoption of technology and more data transparency in lending.
More about the market and our experiences in it to follow…