First, technology is constantly evolving. It's an arms race of sorts, so you can never just settle on a particular platform. Once you do it will be replaced and, to remain competitive, you'll have to learn something new all over again.
Secondly, when you are constantly upgrading your technology, you'll also have to be constantly training your people. Gone are the days when you can onboard people within two weeks and just keep them up to speed with an annual seminar. With each new technological change, your people will have to retrained. So, with the adoption of technology, training becomes an ordinary part of everyday business.
One final thing to consider with technology is the cost of the technology itself. Different technology companies offer different business models for different products and services. What you choose to invest in is extremely important. The most expensive isn't always the best, and the least expensive isn't always the worst. Focus on what the technology does – and only then consider how much it costs.
So, how do you work around these issues? Well, you really can't. If you don't embrace technology, you'll be left behind in the marketplace. So you've just got to absorb these challenges. One way to do that is to find trusted vendors for your technology. If you work with the same select groups to develop your technology, you're training costs will be lower because you'll already be familiar with the platforms. There are no easy answers, but you can't go wrong by working with people you trust.
On the April 11 episode of my Lykken on Lending podcast, we discussed some of the challenges of technology in the mortgage industry. Typically, the topic of technology gets us excited and generally has a positive tone about it. However, there are some things to think about that may make us want to approach technology with a bit of caution.