Two-thirds of brokers say technology is crucial to customer experience but few feel their systems are sufficiently flexible
Uber is the world’s largest provider of taxis, yet it does not own any fleet. In travel and tourism, Airbnb is the world’s largest provider of accommodation, yet it does not own any properties. Might we soon be saying the largest mortgage distributor does not have any mortgage advisers?
Back in July 2014 a survey by the British Bankers’ Association found that 53 per cent of brokers thought online mortgages would grow. They have been proved right with new entrants such as AToM, Metro Bank and TSB keen to take market share.
Meanwhile, established lenders are enhancing their online mortgage processing. Applications to HSBC, for example, take just 25 minutes to complete, while in the US market Quicken Loans has launched an online mortgage that will give conditional approval within 10 minutes.
Should you be worrying about your robo replacement? Possibly. But there are some immediate, more achievable steps you can take. Let us consider a few simple and related facts:
1. Customer experience is king. Eighty-two per cent of customers prefer to buy from companies that make it easy to do business with them, and they are savvy at searching and switching.
2/3. Sixty-eight per cent of brokers believe technology is crucial in enhancing customer experience but only 29 per cent feel their systems are sufficiently flexible to support process innovations.
4. Certain lenders and brokers are embracing new technologies to take more market share. They could be you.
5. The main things you can control and change are yourself and your business.
Have you looked at your software recently? Review your sourcing system and ask yourself how friendly the customer journey is. Does it satisfy all their needs? For example, is it MCD compliant? Does it allow you to compare sourcing results from a standard mortgage product with those from a secured loan?
Small steps will lead you in the right direction.
John Penn is head of lender solutions at Twenty7tec