James Deitch - Disruptive Fintech: The Coming Wave of Innovation in Financial Services with Thought Leadership Provided by CEOs

James Deitch

Disruptive Fintech

James Deitch

The Coming Wave of Innovation in Financial Services with Thought Leadership Provided by CEOs

ISBN 9783110649413

e-ISBN (PDF) 9783110650471

e-ISBN (EPUB) 9783110651430

Bibliographic information published by the Deutsche Nationalbibliothek

The Deutsche Nationalbibliothek lists this publication in the Deutsche Nationalbibliografie; detailed bibliographic data are available on the Internet at http://dnb.dnb.de.

2020 James Deitch Published by Walter de Gruyter GmbH, Berlin/Boston

The MBA Opens Doors Foundation is a non-profit organization dedicated to aiding families with a critically ill or injured child by making their mortgage or rent payment. MBA Opens Doors currently works directly with nine childrens hospitals to identify families in need.

Opens Doors holds a special place in my heart. All royalties from this book will be donated to the Opens Doors Foundation.

Thank you to Judy, my wife, for encouragement, assistance, and practical advice, and most of all, for being a role model and mother to our kids.

To my children Michael and Christina, and grandchildren Marie, Belle, Colin, Caroline, and Austin for your constant inspiration.

To Alex Henderson, my friend, business partner, and consigliere for more than 30 years, who more or less kept me out of foolish adventures, to whom I have lost many one-dollar bets on a variety of topics and who helped greatly in the concept and structure of this book.

To Don Bishop, as well, for 45 years of friendship, business, and fun, and for being a fellow entrepreneur and inspiration for so many ideas.

To Rob Peterson and Maylin Casanueva for your strategic knowledge and perspective on mortgage banking and capital markets and for helping our business partners in so many ways.

To the mavericks: A.J. George, Barrett Burns, Bill Cosgrove, Bill Emerson, Brett Chandler, Chris George, Chrissi Rhea, Dave Motley, Dave Stevens, Deb Still, Eddy Perez, Grant Moon, Jerry Schiano, Jonathan Corr, John Hedlund, Lori Brewer, Marcia Davies, Marie Gayo, Martin Kerr, Mary Anne McGarry, Matt Hansen, Maylin Casanueva, Nima Ghamsari, Patrick Sinks, Phil DeFronzo, Rick Arvielo, Rick Bechtel, Ross Diedrich Roy George, Stan Middleman, Susan Stewart, Scott Gillen, Steve Butler and Tim Nguyen. Thank you so very much for your willingness to share your thought leadership. Without your thought leadership, this book would not be possible. And when you skim through the pages, realize that your direct quotes are but a small part of your contribution. The overall discussions with you synthesized much of my thoughts throughout this book.

To Mauricio Valverde for your assistance in interviewing the Mavericks, research, and your help in finalizing the book.

To Eleni Valasis for your outstanding writing, editing, and research work. Outstanding!

To Anthony Nguyen for technical research, analytics, and helping with the production of the manuscript. Thank you to Barb Wise for all your design and graphic work over the years.

To Teraverdes partners, customers, and friendsyou make this all possible!

James M. Deitch founded Teraverde eight years ago, after serving as president and CEO of five federally chartered banks for over 25 years. Teraverde now advises over 150 clients in mortgage banking, capital markets, and financial technology, ranging from some of the largest U.S. financial institutions to independent mortgage bankers to community banks. Jim founded two national banks, including a top 50 national mortgage lender.

Jim holds a Master of Business Administration, with concentrations in Finance and Marketing, and a Bachelor of Science degree in accounting from Lehigh University. He is a Certified Mortgage Banker and practiced as a CPA until he realized mortgage banking was a lot more interesting than public accounting. Jim has been a director of both publicly traded and privately owned banks and lenders through some very interesting times.

Jims experience in residential mortgage banking for the last three decades on a retail, wholesale, and correspondent basis led to an intense desire to learn about how technology could be applied to financial institutions. His experience includes multi-channel loan origination and sales management, mortgage product design, credit policy, hedging, securitization and loan servicing. His beginning-to-end experience and his love of high-performance aircraft has fueled his need for speed in applying technology to mortgage banking.

He has served on the Mortgage Bankers Association Residential Board of Governors and served as a CEO panelist and speaker for major financial institutions, financial industry associations, corporate clients, the Department of Defense, and universities. Jim is a thought leader and has published numerous articles in the industry publications, including the best-selling books Digitally Transforming the Mortgage Banking Industry, published in February 2018 and Strategically Transforming the Mortgage Banking Industry, published in October 2018. Jim lives in Naples, Florida.

Disruptive Fintech is Jim Deitchs third book about transformative disruption in the residential lending industry. From the ancient Oedipus Cycle plays of Sophocles to the futuristic Remembrance of Things Past novels of Chinese author Liu Cixin, trilogies have made their mark in the literary world. How fitting, then, that Jim Deitch completes his analysis of mortgage banking transformation and disruption (begun by Digitally Transforming the Mortgage Banking Industry in 2017 and continued in Strategically Transforming the Mortgage Banking Industry in 2018) in this third volume, with many illustrative examples ranging from the Greek agora to Chinas Alibaba. We might name these books the Residential Real Estate Lending trilogy.

The first volume in the trilogy, Digitally Transforming the Mortgage Banking Industry, was an instant best seller. The book focused on technological transformation. Technology is of course a key lever of industry transformation. In 2017, the mortgage banking industry needed to take advantage of current technology to reduce costs, increase customer satisfaction, and improve profitability. Many CEOs deployed the specific approach outlined in Digitally Transforming and found considerable success. But technology is only one of the levers of strategy.

Jims second volume, Strategically Transforming the Mortgage Banking Industry, expanded the transformation analysis to include strategic transformation, not just technological transformation. Strategically Transforming provided a strategic roadmap for mortgage bankers, particularly in the area of data-driven enterprises. His comparison of the strategic challenges of mortgage banking industry to those of Major League Baseball, and the use of data in both has become a classic. Once again, Jim was specific, outlining how to use the levers of strategy. And again, CEOs deploying his levers found increased success.

The current volume takes on fintech, a concept and word often used but rarely understood. Jim expands his topic to the residential real estate industry, since disruption in the real estate brokerage space is impacting mortgage lending, and vice-versa. The writing of