The current pandemic has changed the way people do things, with online transactions on the rise. People now have to maintain social distancing even when doing simple things such as having coffee in a shop and paying for it. This situation is similar in the financial world, with banks now taking new customers directly through video KYC and notaries utilizing remote online notarization (RON) for facilitating transactions from one party to another.
RON is a special tool in money transactions used by parties not in a similar geographical location when completing a deal. Normally, for a person or customer to access some bank or any financial services, they will need to walk into the physical location of the service provider; this was the case years ago when the pandemic was not in existence. However, in the current circumstances and future needs, the financial companies will have to find ways to reach customers without having them physically in the branch.
Why is RON benefiting mortgage lenders?
Mobile applications easily accessible in application stores have made it easy to conduct some simple bank transactions, cutting the need for making bank visits. People can now complete some transactions with a simple press or swipe on their phone and have money sent to their recipients. However, for complex transactions such as mortgages, it is impossible to have the transactions complete on a smartphone. RON comes into play in such circumstances, where people needing to visit mortgage companies for complex financial services cannot do so due to the pandemic.
Customers have been accustomed to making physical visits for complex services, this they do to eliminate fraud. However, with RON, they can get the same services safely without stepping out of their homes, bringing a new form of convenience in the previous burdensome procedure. During times of disaster as currently being experienced due to Covid-19, customers can safely conduct complex online business at the comfort of their homes without worry.
Remote notarization has existed for a long time, with 40% of some bank transactions possible over the same network. The current health crisis has exacerbated the issue, with banks canceling some face-to-face transactions, with others shifting some services to their RON-possible bank transactions. State governments have pushed for the shifts seen currently, with policies to make more bank services possible using the fraud detection online network. RON services currently rival those of online transactions made possible by the development of mobile technology.
How can mortgage lenders take advantage of RON?
Mortgage lenders need to do any background checks before offering the services to customers, as different states have unique guidelines on the use of the services. While some states have permanent guidelines on the use of the service on book transactions, others only allow the practice after a temporary grant from the state has been issued. Therefore, any mortgage bank with the ambition to implement its services under RON must follow the state guidelines and select the technologies fit for the same, as existing laws can have a significant impact.
Online notaries have a significant dependence on video and audio technologies. The tools are helpful when making ID verifications and scanning the environment for possible coercion of one of the parties. The banks must see the person on the other side signing a document and holding up their identity to confirm they are dealing with the right person. A series of questions also complete the verification process, making it safe.
On the other hand, Bankers might ask questions by presenting a user with a series of four options for their address; a selection of the correct one will enable the process to move to the next step. Banks must also have a secure end-to-end connection that permits a video link to allow the parties to sign documents without the watchful eyes of hackers.
Currently, financial transactions are among the services most affected by security breaches by hackers. However, online tools have taken a significant share of services offered by the financial companies, with RON the most regarded services for complex financial services. RON benefits traditional and reverse mortgage lenders by providing efficiency and security