U.S. banks are paying a sizable price for failing to modernize their mortgage application processes in the internet age, according to a study from researchers at some of the nation’s top business schools.

The recently published paper found that deposit-taking banks have fallen behind certain nonbank competitors that let their customers apply for home loans online. This technology gap is hurting banks in two ways, according to the study, which was co-written by business school professors at the University of Chicago, Stanford and Columbia.

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