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MortgagePoint ยป Your Trusted Source for Mortgage Banking and Servicing News 44 August 2024 F E A T U R E S T O R Y As default servicers prepare for the anticipated spike in default, the imperative to modernize operations has never been greater. However, in the rush to adapt to changing circumstances, it is essential to remember that the best technology is not always the newest or most expensive. adding efficiency to their operations without the major investment that many modern technologies require. Where they are available, updating legacy systems with modern interfaces and integrations is another effective way to improve the impact of one's existing tech stack. The bottom line? Servicers should not start any effort to upgrade their operations by assuming they cannot get more out of the technologies they are already using. That said, there are other reasonably priced forms of technology out there that can help fill the "gaps" in one's tech architecture. Attacking the "Gaps" in Your Tech Stack R ather than overhauling their entire technology infrastructure for something that's simply newer, default servicers can achieve meaningful mod- ernization by strategically addressing the biggest weaknesses in their operational workflows. This targeted approach al- lows servicers to allocate resources where they will have the most impact, without incurring unnecessary expenses. Once they have identified their biggest weaknesses, servicers can then leverage "in between" technologies such as Robotic Process Automation (RPA) to fill gaps or address major chokepoints in their workflows. These intermediate solutions offer a pragmatic approach to modernization by targeting specific pain points without the need for a compre- hensive overhaul. Additionally, RPA solu- tions are often less expensive than larger operating platforms, and can be used to optimize existing technology. For example, RPA can automate repetitive tasks and routine processes, es- pecially where critical elements of a tech stack are not integrated, freeing up hu- man resources to focus on more complex and value-added activities. By deploying bots to handle data entry, document processing, or system reconciliations, servicers can increase throughput and reduce errors with minimal disruption to existing operations. Beyond RPA, servicers can also target limited core technology upgrades where they have the most impact on the operation. For example, upgrading the customer relationship management (CRM) platform alone can provide significant benefits in terms of scalability, automation, and data management. By focusing on these foundational elements, servicers can build a solid technological foundation that can adapt to changing needs and growing volumes. As default servicers prepare for the anticipated spike in default, the imper- ative to modernize operations has never been greater. However, in the rush to adapt to changing circumstances, it is essential to remember that the best technology is not always the newest or most expensive. By strategically evaluating and updating existing systems, investing in key components of the tech stack, and leveraging "in between" technologies like RPA to fill gaps in workflows, default ser- vicers can upgrade their scalability and flexibility without engaging in massive technology debt spending. In doing so, they can position themselves not only to optimally manage spiking order volume, but also to thrive in a new default servic- ing world that will demand scalability and the capability to pivot with quickly changing conditions.