Lenders warned to invest in IT

Lenders risk becoming industry dinosaurs unless they invest in technology, warns edeus.

Alan Cleary, managing director of edeus, says that for the next generation of borrowers, using online technology will be the norm and young consumers will increasingly demand online instant decisions and offers on mortgages.

He says: “These days, people want to book their holidays without going to a travel agent and get a girlfriend or boyfriend without meeting them. My kids can’t believe brokers fill in applications by hand.”

He add that edeus spent £10m on bringing its systems to market. While it’s natural for people to fear change and be anti-technology, he warns brokers to be wary of lenders that are against technology as a result of a lack of cash rather than on principle.

He says: “We operate in a sleepy village and most lenders are slow to innovate.”

Out of 100 or so lenders in the market he points out that just 20 have invested in comprehensive online systems.

He says: “If I was a broker I’d be asking which lenders have bothered to spend money. Speed will become more important than price. That’s what consumers want.”