The US mortgage and services market is a multi-trillion-dollar sector that, until recently, was a forgotten arena for large-scale innovation. Mortgage innovation has lagged other sectors because of high regulatory burdens and a highly consolidated market of the historically poorest innovators: banks. Add to that the inertia that comes from decades of consumers forced through a complex web of providers and high, often opaque, costs.
So, what could change large-scale inertia and big incumbent players with high walls of defense? In a word, tech. I worked with a systems engineer who once said, “Technology is like a leaking pen in a white shirt pocket. It will bleed through and change everything.”