View more on these topics

Half of brokers worried about robo-advice: L&G Mortgage Club

 Technology-Binary-Data-Tech-Code-700.jpg

Nearly five out of 10 brokers say robo-advice and technology will be their biggest threat in the next three years, says Legal & General Mortgage Club.

The club found 49 per cent of brokers agreed with the sentiment at its recent Mortgage Club Live event, up 11 per cent from a year ago.

Legal & General Mortgage Club director Jeremy Duncombe says: “Brokers might be in their strongest position for nearly a decade, but, as these figures show, many continue have concerns about the impact of robo-advice and the threat it might pose to the future of their business.

“However, instead of viewing technology as a threat, advisers should see it as an opportunity and an enabler to help them meet the changing needs of the market.”

The mortgage club also discovered that 22 per cent of brokers felt customer behaviour was the biggest challenge to their business.

Meanwhile, 20 per cent said non-industry disruptors were their main concern.

Lenders were cited as the biggest challenge to brokers by 9 per cent of those surveyed.

Legal & General also found that 83 per cent of brokers expect to diversify their business in the next 12 months through new products, services or technology.

Just 17 per cent of intermediaries did not expect to diversify over the next year.

Duncombe adds: “Whilst it is positive to see that more than three-quarters of brokers do plan to diversify and adapt their businesses, including with technology, as an industry we must encourage the rest to not shy away from technology, but instead use it to futureproof their businesses and make their propositions even more appropriate to the next wave of younger borrowers.”

Recommended

Head 2 Head: Is there an advice gap with robo-advisers?

YES Mark Dyason, managing director, Thistle Finance Robo-advice is very much in that initial buzz phase. Homeowners are increasingly reading about it in the media, or are hearing about it through family and friends. In many cases, the impression they’ll get is that this is the next big thing, saving them money and making the […]

1

My Opinion: Robo advice needs human engineering

Instead of trying to replace brokers with robots, why not build tech to support the integral, human part of the process? What do technology and consumer demand have in common? Both tend to change very rapidly. Just as Netflix made the once popular Blockbuster disappear from our high streets, and Airbnb allows homeowners to invade […]

Technology-Tech-Currency-Money-700x450.jpg

A third of brokers say robo-advice their biggest threat

More than a third of brokers see the growth of robo-advice as a threat to their business, according to research by Legal & General Mortgage Club. Nearly four out of 10 brokers (38 per cent) see the rise of robo-advice as the biggest threat to their business in the next three years. Around 88 per […]

Your Views: FOS will determine the extent of robo advice – and it will never approve

FOS will determine the extent of robo advice – and it will never approve Regarding the recent Mortgage Strategy article on how far robo advice will penetrate the mortgage market, there is a distinct and important difference between using tech and trying to completely automate the entire mortgage advice process. As for brokers being behind […]

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • Simon Murray 15th October 2017 at 8:59 am

    Technology will never take over the benefits of face to face advice. Brokers are as guilty as the man in the the pub in not promoting the end to end service /support they can and should provide. If they don’t, well face the consequences. What we do need is for employers to provide systems that that offer over complicate the advice process and weigh down the broker with multiple systems/pieces of paperwork