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an imbalance between the real cost of funding and the price of lending. credit. This is partly the way things have developed in India, and the
So, this is generally not good; it's little bit same as having a rent control, competitive advantage of these firms is developing this smart technology
where you limit the price of a rental accommodation, in effect, capping for the underwriting.
the supply. It's much better to leave the market to function and work with
enough profitability for all players. Otherwise, they won't be active in this The second one is the use of Blockchain. There are many different
area. But direct assistance to the people who need assistant is necessary. applications, but particularly notable one is for land, which ensures you
Direct demand subsidy is a complex topic with no clear answer. It's not have the very latest title documents with all related information, which
a magical solution, but it's much more effective in mobilizing credit and you can authenticate and have full confidence in them.
private sector resources. Leveraging, like Simon said, can help people. I
would not compare the interest rates subsidies with secondary mortgage In many countries, the problem is that whatever document you're
market, as they are not exactly the same thing. In the end, you have given, you're never quite sure if it is a fake or fraudulent, if there have Session II
to mobilize resources and you have to have systems of subsidies, not been other amendments or changes. I think Blockchain eliminates all
restrictions, which are precisely an incentive to mobilize the resources. of these uncertainties and creates absolute certainty on who this land
belongs to. For mortgage lenders who assess the collateral, this is a
critical element of the lending process. These are two examples, but
» Moderator | Henny Sender I think every aspect of the housing and lending process is affected by
Thank you. One thing we didn't discuss at breakfast, while I have technology in some way.
no idea how all of you think of this issue, is technology and the role of
technology in everything from credit rating, either the individual buyer
and the affordability, his credit score to that of the developer, to how » Panelist | Jerry Fang
we think about city planning and smart cities, and how we think about Just a quick one. It's not about the mortgage origination, but about the
climate change, and where to build going forward. Who has any thoughts servicing. According to our US colleagues, who did a research after the
on how technology will increasingly change our dialogues going forward global financial crisis, the compliance cost associated with the mortgage
on all these metrics? Simon, do you want to take the first crack? loan servicing increases exponentially. So, another trend we all are aware
is that now the younger generation likes to self-service, likes to look up
the information from websites and apps. So with these two together,
our colleagues in the US see the trend that in the US, the mortgage
» Panelist | Simon Walley originators are gradually leveraging more and more AIs or robots to
I think technology covers everything, every aspect. There's two offer the service to those customers who prefer self-servicing, in order
specific aspects I'm excited about. One is the use of AI, particularly to reduce the cost and increase customer satisfaction experiences. That's
in underwriting and developing models that don't just rely on the what we see how the technology affects the mortgage servicing. Thanks.
traditional models, where you give us your last six months’ salary slips,
based on which we underwrite you. Rather, we've got a model where we
know, if you're a taxi driver in this metropolitan area, how much you will » Moderator | Henny Sender
earn and be owning. It is a much smarter approach to how underwriting Thank you. According to the timer, we have three minutes, according
works. This allows those working in the informal sector to access to my watch it's time to end. But I'm going to end on an editorial note
352 2019 6th AFIS & ASMMA Annual Meeting 353
