A new joint study by HFS Research and Cognizant shows how important technology has become for mortgage lenders and predicts that Agentic AI will become “the next big play,” as it merges “GenAI’s cognitive reasoning with automation’s precision — ushering in task-fulfilling ‘agents’ that scale beyond efficiency into execution.”
“In the rapidly evolving landscape of non-bank mortgage lending, there is a critical need for innovation and agility,” says Ajay Pandita, senior vice president and financial services, fintech and insurance business unit leader, for Cognizant. “As we navigate through operational fatigue, regulatory pressures, and technological disruptions, it is imperative that we embrace purposeful innovation and redefine our strategies. The emergence of Agentic AI and IDP are just the beginning. By prioritizing technology with measurable outcomes and leveraging full-service partnerships, we can transform the mortgage lending journey and lead the industry into a new era of efficiency and value creation.”
The study highlights how 2025 will be a turning point for lenders, as technology redefines experience, operations and value across the mortgage lifecycle.
According to the report, 74% of non-bank lenders are betting on innovation to drive differentiation, while only 21% believe they are leading the pack — revealing a significant gap and opportunity to innovate.
The report also reveals that only 51% of lenders feel fully prepared for compliance risk, with some receiving up to 1,700 regulatory alerts in 2024 — 25% with direct business impact.
The report also shows that intelligent document processing (IDP) is winning over lenders for its fast returns—especially where paper still rules.
The report, which draws on insights from 257 non-bank lenders and ecosystem partners, also explores how outsourcing is being redefined. Full-service partnerships are expected to rise from 30% to 42% by 2026, measured by growth outcomes instead of simply on cost.
“The fundamentals of lending haven’t changed — the loan is still a loan,” says Saurabh Gupta, president, research and advisory services, HFS Research. “What’s changed is the speed, intelligence, and precision with which it’s delivered. This is no longer just about access to capital — it’s about how seamlessly, securely, and smartly capital flows through digital channels.”
“The ones who go all-in — building digital-first, modular, and intelligent operations — will define the next era of mortgage lending,” Gupta says. “The rest? They risk being left behind.”
Photo: Alexander Sinn
