View more on these topics

Lenders shift focus to retaining clients

NEIL WARMAN, CHIEF COMMERCIAL AND FINANCE OFFICER, HML
NEIL WARMAN, CHIEF COMMERCIAL AND FINANCE OFFICER, HML

The past two years have seen a dramatic change in the focus of technological development in the mortgage market.

Before the credit crunch there was an emphasis on new lending and the speed of underwriting decisions. Eager to win the favour of advisers, lenders ploughed money into technology to enable quick processing.

Today it’s more about managing borrowers. New lending is no longer the battleground and lenders are looking to manage customers, competing on service.

Of course, aspiring to give customers the best possible experience is not a new concept but the challenge today lies in finding a balance between human interaction and harnessing the benefits of technology.

Some transactions can be automated such as the provision of basic account information like mortgage balances. Automation here can give staff more time to liaise with clients.

The selected elimination of manual intervention also helps ensure customers are treated in accordance with lenders’ strategies.

We can draw a parallel between this and the vogue for instant decisioning tools which were aimed at providing consistent decisions in line with underwriting policies.

In modern life, much can be achieved through a combination of automation and the personal touch, and right now the focus in the mortgage market is to care for existing customers, not attract new ones. That’s why enhancing the customer experience is the order of the day.

Recommended

Brokers face delays in AR application process

The Financial Services Authority is taking a tough line on brokers applying to become appointed representatives, resulting in delays to the application process. It is thought that the regulator is gathering more information on prospective ARs ahead of extending its approved persons regime to mortgage advisers. This proposal formed part of the Mortgage Market Review […]

MARGARET COLE:  WE ACT AGAINST TOP DIRECTORS

Covering up arrears was common among lenders

The misreporting of arrears at Northern Rock exposed by the Financial Services Authority was part of a widespread practice among lenders to disguise arrears figures, Mortgage Strategy understands. The FSA has fined two former directors at Northern Rock a total of £644,000 after the lender omitted nearly 2,000 loans from its arrears figures. But one […]

JASON BERRY, HEAD OF DISTRIBUTION AND STRATEGY, SAFE&SECURE INSURANCE SERVICES

60 Seconds with…Jason Berry

What does Safe&Secure do? Safe&Secure is a master broker for general insurance. Our unique selling point is that we use our Derby call centre to sell and process buildings and contents cases on behalf of brokers. Importantly, as we only have Financial Services Authority permissions for GI we do not cross-sell to brokers’ clients. How […]

ALAN CLEARY, MANAGING DIRECTOR, EXACT

New lenders won’t solve our problems

A lot of column inches are being dedicated to new banks at the moment, which I understand to an extent. But from the perspective of the mortgage market new banks are not fantastic news. The fact that they will initially fight for retail deposits means no new money will be injected into the system. If […]

Newsletter

News and expert analysis straight to your inbox

Sign up