Morgan Stanley Builds Mortgage App To Try And Stay Relevant As Fintech Booms

It’s no secret that Wall Street lives in constant fear of Silicon Valley. Bank CEOs probably wake up in a cold sweat after imagining that their clients have handed their money to some new startup that’s found a way to disrupt a financial service like, say, wealth management.

To try and fend off the robo-advisers and other fintech companies trying to wrest every bit of market share away from the big banks, Morgan Stanley is launching its own suite of apps, meant to win over younger clients who prefer digital products. On Tuesday, the bank announced its latest offering: its very own digital mortgage application tool.

Here's Reuters:

Morgan Stanley is developing a new digital mortgage application tool in a bid to get more of its existing clients to turn to it for home loans, its wealth management technology head said on Tuesday.


Morgan Stanley has invested heavily into growing its residential mortgage and customized lending business in recent years. But only 2 percent of current clients have home loans with the bank, Naureen Hassan, chief digital officer for wealth management, said at the bank's U.S. Financial Services conference in New York.


Hassan said the new tool will allow clients to get rate estimates, upload documents and apply entirely online. She did not say when the bank planned to launch the platform.

The announcement follows a deal the bank made with 10 technology firms back in January to help improve its digital offerings by introducing a suite of new financial apps, including an investment-tracking software called Addepar and a payments app called Zelle that’s being launched in partnership with three other banks. The digital initiatives are apparently a priority for Morgan Stanley CEO James Gorman.

"We've got to be careful that we are not penny wise and pound foolish," Gorman told Reuters when the bank first announced the initiative back in January.

With revenues from traditional businesses like trading and wealth management set the shrink, and so-called roboadvisers like Betterment offering to provide essentially the same service as Morgan’s army of financial advisors but for much, much less, banks are eager to explore new businesses that could become long-term sources of revenue.

Morgan Stanley isn’t the only Wall Street firm looking to expand its digital offerings: Reuters revealed back in March that Goldman Sachs is hiring coders to build its very own roboadviser for the “mass affluent” market (a.k.a. poor people).

But apparently where Goldman sees opportunity, Morgan Stanley sees a line that shouldn’t be crossed: Gorman told Reuters that his bank is sticking with a business model that favors wealthier customers. Though he did leave the door open to someday serving those who want purely digital advice.


Yen Cross Thu, 06/15/2017 - 04:26 Permalink

   What is a Fintech?  Is that level-II market routing? Is that preferred execution?   /sarc I got some microwave ovens-towers for sale.  Ha

equity_momo Thu, 06/15/2017 - 05:25 Permalink

 "We've got to be careful that we are not penny wise and pound foolish" last i checked MS was a Primary Dealer. You get money for nothing. You can literally burn $10m every morning in the car park for shits and giggles and not worry.   These cunts have no fucking idea about "staying relevant" without the greatest crutch ever devised - the Federal reserve system.

buzzsaw99 Thu, 06/15/2017 - 05:48 Permalink

their ilk, the fed, and the front running algos have killed the golden goose.  buy and hold passive investing with ultra low management fees is the long term future bitchez. i don't need them for that, and i damn sure don't need a loan, and even if i did there's so much cash out there that i still don't need them. when we go to NIRPcon1 everybody, and I mean every broke dick hillbilly and his dog, will want to be a banker.  You think buzzsaw wouldn't like to sit on a few trillion dollars of OPM while THEY PAY ME 0.5% on THEIR MONEY??

equity_momo buzzsaw99 Thu, 06/15/2017 - 06:10 Permalink

The jig is never ending if youre a PD.  Also , try to set up a bank , any old bank.   Snowballs chance in hell of getting a license.    fwiw US will never go NIRP. That'd be system-ending suicide when youre the reserve ccy. You'll have more than tinpot dictators shifting from real goods for $ to another ccy standard if $NIRP ever happened. 

In reply to by buzzsaw99

buzzsaw99 equity_momo Thu, 06/15/2017 - 07:03 Permalink

there is a little bank on every corner.  it can't be that hard.  when the overnight rate is positive it is big-bank friendly.  when it goes negative that levels the playing field.  I believe this is why Yellen is raising the rate, to help her big boyz out at the expense of the poor little banks.  That and a little fed-induced artificial volatility is good for morgue and crew trading revenue.

In reply to by equity_momo