"There are many more opportunities that still exist to put technology to use in ways that will take some of the burden away from staff and deliver an even smoother experience for borrowers. "
The role of technology in today’s mortgage market has evolved significantly over the last few decades, marking an end to the days when the application process was largely carried out offline.
Interactions between lenders, brokers, solicitors and distributors are now generally conducted electronically, which has helped to simplify and speed up the mortgage process substantially, making it easier for everyone involved.
Specialised CRM tools and the growth of sourcing systems have also helped to create greater efficiencies, while improved integration with credit bureaus, public databases, anti-money laundering providers and other third-party solutions have helped to enhance the process even further.
However, while all these developments mark significant change in the sector, there are still great areas of untapped potential in terms of how technology is incorporated into the mortgage market, particularly with regard to broker intermediation.
For example, technological developments such as Open Banking has proven critical in many other areas of the financial services industry, helping to make fantastic improvements in terms of the customer experience.
However, these developments have not yet translated to the mortgage industry and there are many more opportunities that still exist to put technology to use in ways that will take some of the burden away from staff and deliver an even smoother experience for borrowers.
The adoption of AI is an excellent example of this and used the right way, can help to deliver a better experience for customers and drastically reduce the time staff spend on admin tasks.
For example, Sikoia’s AI-powered tool has been designed to process a diverse range of customer application documents such as payslips, bank statements and tax returns and automatically generate checks to verify income, employer details, affordability and application completeness behind the scenes.
Customers can receive instant updates as soon as they submit their application documents without the need to review manually, helping them to save significant time filling out fact finds and budget planners.
In addition to saving time, the rate of accuracy associated with using AI means the risk of human error is dramatically reduced, enabling brokers and lenders to use that time more efficiently by supporting other customers. It can also help lenders gain a better understanding of their customers.
One of the many criticisms associated with the growth of technology in the mortgage industry is the so-called lack of “human touch”. However, I believe there needs to more focus on how technology can supplement human advice, rather than replace it.
The fact is, used correctly, AI can provide great consistency and support to lenders and brokers by taking the administrative burden away from the advice process, rather than rivalling it.
It can also help to prevent the double keying of information and task repetition that can lead to delays and inefficiencies as well as enhance the connectivity between brokers and lenders by sharing data between different systems.
The benefits of AI to all parties involved in the mortgage process are substantial and can help to provide instant improvements to the current, more lengthy and costly processes. In fact, one of the many advantages of AI is that it can be implemented in a way that requires minimal changes to current processes and can prove to be more cost-effective.
Borrowers of today are already seeing AI play a more central role in many other aspects of their lives, so it is only a matter of time before they come to expect it from mortgages too.
The industry is currently perched on the cusp of a great digital transformation where improved technological integration across the mortgage industry can help to deliver a faster, smoother experience for everyone involved. How quickly the mortgage industry recognises these potential AI improvements remains to be seen.
