Isn't technology supposed to make things easier?

by MPA09 May 2016

In many respect, the adoption of technology is inevitable. As certain applications become more vital to any given industry, certain technologies must be adopted to meet those demands. In the mortgage industry, with the continual push toward regulatory standardization, this is all the more true. You simply can't play the game without embracing technology to some extent.

But, why would that be a problem for anyone? Why is the adoption of technology ever resisted? Technology is supposed to make our businesses more effective and efficient. It's supposed to solve problems and reduce bottlenecks. In short, it's supposed to make business easier. So, why is it that people are often hesitant to invest in new technologies as they arise.

The keyword here is, I think, "invest." Especially with the newer, more groundbreaking variety, technology is not cheap. Yes, it can revolutionize a business's productivity. It can contribute to reducing costs and increasing revenues. But, it often does come at a significant cost. There is the cost to purchase the technology itself, which is often proprietary and offered by a single vendor a select amount of vendors. Then, there is the training costs involved in learning how to use the technology. And, finally, as with any other investment, there is opportunity cost. You are losing out on investing that money in something else that could have been a better investment.

I say all of this not to scare you away from seeking out new technologies. I simply want to emphasize the importance of approaching them with caution. Don't try out everything just because it's new. Consider what will work for business, and what won't. Only invest in what makes sense for you.


Is TILA-RESPA a good or bad thing long term?