"Technology, innovation,and a willingness to adapt are essential to accommodate the industry, improve the customer and broker experience, and ensure continued success."
A willingness to adapt is essential in the mortgage industry, particularly in light of the challenges we’ve continued to face in the last couple of years. Embracing innovation and change has enabled our industry to thrive, and we continue to push the boundaries in this space to ensure the very best service for our customers.
We recognise that innovation isn’t just about leveraging technology, it’s also a process of behavioural and business change. By adopting an innovative mindset across all facets of our business, we’ll improve the education of our customers, enhance the quality of our processes, and align more closely with Consumer Duty. Innovative thinking translates to generating more leads, retaining customers, and enhancing productivity. All of this greatly contributes to ensuring the best possible outcomes for customers and brokers alike.
Optimising the customer experience
It’s no surprise that today's customers are accustomed to a more streamlined, digitally-driven advice process - from managing their applications virtually, receiving instant updates, to accessing easily digestible information that engages and educates.
Our industry has kept up with the move towards a more technologically-focused customer experience, going above and beyond to ensure that the journey to getting mortgage ready is straightforward, accessible, and efficient. For example, a new mortgage retention portal has recently been developed by Finova to help customers switch mortgage deals more efficiently and easily. Moreover, ‘one-click’ decisions in principle have been introduced by Acre and Nationwide, which could save brokers up to 45 minutes per case.
We know there is no one-size-fits-all solution when it comes to mortgage advice. Instead, we succeed in breaking down barriers and making homeownership accessible to a wider demographic of customers. New, innovative mortgage products and initiatives are being developed on a consistent basis, helping those who may not necessarily meet traditional lending criteria, or who may face affordability challenges when retrofitting their properties.
Effective employment of AI
While artificial intelligence (AI) should by no means act as a replacement for human interaction and firms should continue to be aware of its potential risks, it has certainly gone some way in contributing to our industry’s success being at the forefront of change and innovation.
With a forecasted global market value of £164bn by 2026, AI has the potential to further enhance the broker/customer experience and proposition, and here at Mortgage Advice Bureau, we’re actively looking ahead to how we can implement AI in our own processes and customer/broker journeys. For one, it could empower brokers to support and retain a wider range of customers, helping to identify demographics that sit outside the mainstream.
It also has the potential to review and analyse alternative data sources (such as rental payments), providing a more holistic view of a borrower’s financial history that could help open up more avenues to homeownership. AI-powered tools will also help to reduce reliance on manual document verification and uploading, making for a much more streamlined advice journey for brokers and customers.
Working to keep consumers well-informed
Innovation gives our industry scope to further embrace Consumer Duty requirements, enhancing customer education in relation to the mortgage application process and encouraging them to speak to a broker with the information gleaned.
Interactive online tools are becoming increasingly popular, as well as the use of document AI to automatically read, understand, and analyse regulatory documentation. This will empower customers to understand their mortgage eligibility and feel more confident throughout the homebuying process.
Calculators are one such way that customers can be supported through the homebuying journey. By inputting top level information on their finances, they are educated on areas such as their affordability, mortgage repayments, and associated costs with the homebuying process, such as stamp duty. This empowers them to participate in meaningful discussions with their broker on getting mortgage ready, helping them make more informed financial decisions in the process.
Innovative tools help to bridge the knowledge gap for customers, fostering confident decision-making throughout their mortgage journey. Adoption of these tools has enabled brokers to not only fulfil their duty to educate their customer base, but also build trust and encourage more meaningful, productive conversations.
Capturing ‘out of reach’ customers
In the past, intermediary success often hinged on a reactive approach, waiting for potential borrowers to make contact. However, innovation has opened up a powerful new avenue for customer nurture. This allows brokers to cultivate relationships with a wider demographic, reaching those who might not have been traditionally targeted or who may have slipped through the cracks.
A prime example of this is the recent development of our Financial Risk Assessment tool, which allows brokers to educate and advise those demographics they may not have been able to discuss protection with, helping them to understand the potential solutions available.
Furthermore, the rise in popularity of customer apps has allowed brokers to segment and target potential new customers based on information such as demographics, financial situation, and stage of life. This targeted approach allows for more relevant communications to be sent to them, increasing engagement and conversion rates as a result.
Capturing leads through nurture is a win-win situation. Borrowers benefit from increased knowledge, targeted communication, and a more convenient experience. At the same time, brokers gain access to a wider customer base, build stronger relationships with existing clients, and ultimately achieve greater success in an ever-evolving mortgage market.
Adaptability is key
Technology, innovation,and a willingness to adapt are essential to accommodate the industry, improve the customer and broker experience, and ensure continued success. By embracing innovation, mortgage brokers can not only retain and capture more customers, but also secure their position in a future that is increasingly digital and data-driven. The time for progress is now, and those firms who remain open to innovation will be the ones shaping the winning narrative for our sector.
