The industry would not have survived the pandemic without the help of technology. Some innovations are clearly here to stay, but can automation go even further to help improve the mortgage process?
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What does the future
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By Emma Simon
‘It may take time until we have a fully integrated, end-to-end process’
‘A lot of people prefer to do things remotely, so innovations like electronic paperwork have been far more useful than we expected’
It certainly hasn’t been ‘business as usual’ across the mortgage industry in recent months. But the increased use of digital technology and the adoption of new systems have helped the sector adapt and cope with the ongoing Covid crisis.
Brokers report that some lenders have been more successful than others in ensuring service standards are maintained during these challenging times. Much depends on the technology being used and how well it has integrated with brokers’ own systems.
SPF Private Clients chief executive Mark Harris thinks that, on the whole, lenders have responded well to the challenges.
“The technological solutions introduced have helped alleviate a number of problems,” he says.
The focus has been on improving the speed and efficiency of the front end of the mortgage journey, accord-ing to Harris, including advice, submission, valuation and offers. There has also been a lot of work around the release of funds.
But he adds: “There is a period in the middle of this process, involved with searches and conveyancing, which seems to take an inordinate amount of time. It would be good to see renewed attention on this to im-prove the overall customer journey.”
Harris thinks more work could also be done to reduce duplication during the process; for example, a client’s identity often has to be verified a number of times.
“With enhanced security standards, you wonder if there is a way for these tasks to simply be conducted once and then ‘passported’ through the process,” he says.
Demand for fintech
Cambridgeshire Money director Corey Whelan points out that demand for fintech solutions is being driven in part by the younger generation coming through the industry.
He says: “I am 26 years old and grew up in the tech boom era.”
He says he set up his company to utilise the various available technology solutions, which helped to limit the impact of the lockdown.
Whelan says: “Using cloud-based CRM and sourcing systems, and ensuring my emails and mobile are on an internet-based phone system, enables me to work anywhere provided I have an internet connection.”
He says that various online sourcing tools, such as Knowledge Bank and Criteria Hub, have helped make the broker’s job easier and enabled him to identify available deals quickly.
Whelan adds that customer demand is also accelerating the adoption of digital solutions.
“At the end of the day, the consumer wants things done quickly and conveniently. For a good few years, people have been using services like Skype, WhatsApp video and FaceTime, so most people have not had any problems using services like Zoom to replace face-to-face meetings.
“I imagine people will continue to use these services long after the pandemic. Why drive to an office, struggle to find a parking space and take time out of your day when you can have a conversation with your broker online from the comfort of your own home?”
Technology has clearly improved many parts of the mortgage market, but there are still steps that can be taken to further streamline processes and drive up service standards.
Brokers point out that the efficiencies achieved through technology come from the homogenisation of standards and processes. This means that, to date, the biggest beneficiaries have been ‘vanilla’ clients.
However, there is scope for a more automated and remote service to be extended to clients with non-standard requirements and to more niche sectors of the mortgage market.
All hands
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What does
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head of sales
HSBC UK Intermediary Mortgages
Richard Beardshaw
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Brokers who had invested in technology prior to this crisis have been in a better position to deliver high service standards to clients.
Mortgage adviser Tony Higham, who works for Manchester-based brokers Mortgage Success, says the company rolled out its new customer relationship management system in January.
He says: “One of the things we wanted was to be able to send out paperwork to customers electronically, for them to sign online.”
While this was primarily intended for customers who lived further afield, Higham says it has become an essential service during lockdown. Technology like this will persist beyond Covid, he thinks, and will help to streamline services.
“A lot of people prefer to do things remotely, so innovations like this have been far more useful than we expected.”
Higham says there have been “clear differences” in the way lenders have coped with the challenges facing the industry. In many cases, this isn’t just due to their adoption of new technology. Those that have man-aged to maintain good levels of service are often focused on getting the basics right, be it answering phones or having sufficient staff to ensure Live Chat functions are responsive.
He adds: “It was understandable that initially there were longer waiting times to speak to lenders, with some staff furloughed or moved to support direct helplines dealing with borrowers in financial difficulties.”
But he says months later there does not seem to have been a significant improvement among some lenders, which is far from satisfactory.
“Brokers need to speak to lenders about new enquiries or ongoing applications without spending an hour-plus on hold.”
Harris agrees that lenders should be aiming to improve service standards.
“We are seven months down the road from the initial lockdown. Lenders were rightly praised for how they reacted to the original crisis but, with a buoyant market, lender service propositions have suffered.”
Ahead of the game
‘Brokers need to speak to lenders about new enquiries or ongoing applications without spending an hour-plus on hold’
He says in many cases transaction time is a key consideration, and this will increasingly be the case for purchasers looking to complete before 31 March when the stamp duty holiday ends.
L&C Mortgages associate director David Hollingworth would like to see better integration between broker systems and lender applications to create a more streamlined and efficient service.
He agrees that the best way to do this is to encompass all parts of the mortgage chain, such as valuers and conveyancers. However, he acknowledges that this joined-up approach may still be some way off.
“There are a lot of moving parts here so, while there will certainly be a good deal of positive change to come, it may take time until we have a fully integrated, end-to-end process,” says Hollingworth.
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