"Out of competition comes innovation – whether it’s in products or criteria – which is only good news for brokers and for consumers. "
FR: You joined Target back in June. How are you settling in?
I’m settling in well and really enjoying working with a very talented team who are hugely capable and doing tremendous work in the mortgage originations space. It’s been great to meet with different lenders, banks and building societies to discuss digital transformation and how Target’s broad proposition and proven sector expertise can support them in this journey. Target celebrates 45 years in business this year, so it’s well tenured, and is backed by the might of Tech Mahindra. Using my experience, I see my role as a voice for the brand and its proposition, to share with the market and support firms in achieving this transformation.
FR: How open are lenders to digital adoption and digitalising the mortgage market?
While lenders haven’t always been open or ready for change, there’s certainly an appetite for digital transformation. This is as much driven by a need and desire to drive efficiencies and create a user centric experience, as it is meeting the demands of what is an intermediary driven market. We’re seeing fantastic initiatives to help speed up and digitalise the mortgage process and it’s great to see several big-name lenders helping to lead that charge.
As the old saying goes, necessity is the mother of invention. Ambitious lenders are busy identifying how to scale at speed – to quickly find those opportunities and that competitive advantage. While it’s often the case that it ultimately becomes a choice between scale or speed, lenders are beginning to understand the distinct role technology and digitisation can play in achieving both. The right partnerships are critical to this too, not just to drive change faster but to help lenders bridge those gaps in skills, knowledge or simply capacity.
FR: You mentioned Target turning 45 this year. How has it managed to achieve that longevity?
It’s a tremendous achievement in such a fast-paced industry and volatile market. Being so closely aligned with the mortgage market and financial services has certainly helped and means there’s an understanding of the needs, but also the pain points felt by all parts of the market. Even as a relative newcomer, it’s clear the team at Target is really knowledgeable and passionate, particularly when it comes to product development. Despite its 45 years in business, there’s no attempt to rest on its laurels which is hugely encouraging for someone like me just joining.
Given its longevity, one of the biggest challenges is breaking away from an association with legacy software or just being known for in-life servicing. Not only is our proposition far broader, but our originations platform Mortgage Hub is brand new and truly cutting edge. It’s encouraging those that think they know Target or know our systems to rethink their assumptions.
FR: What separates Mortgage Hub from other origination platforms?
To transform the mortgage process and the wider home buying experience, we have to address the frustrations faced by all parties. Starting from scratch, Mortgage Hub has been built from the ground up to be user centric and been specifically designed using behavioural science and in consultation with lenders, underwriters, case managers, brokers, conveyancers and customers.
Our solution enhances lender engagement by offering personalised digital experiences, omnichannel accessibility, and streamlined processes for customers, while providing colleagues with an intuitive interface, centralised information hub, and automated tasks. It boosts flexibility through API architecture, customisation options, and API-first approach, adapting to unique needs and regulatory changes. Scalability is ensured via cloud-native infrastructure and microservices architecture accommodating growth seamlessly. This comprehensive platform empowers lenders to deliver exceptional experiences, improve operational efficiency, and confidently support their evolution in a dynamic financial landscape, all while maintaining regulatory compliance and fostering innovation.
Looking forward, Mortgage Hub has the ability to open up new revenue streams for lenders too as we pivot from purely buying a house to creating a home - utilising a wider eco system of 'big data' from both traditional and non-traditional sources. We want to establish affiliations with utility companies, streaming providers, internet providers and financial coaching tools that can be sourced at the initial contact stage of the home buying journey.
FR: How do you see the rest of the year playing out for lenders and the wider mortgage market?
With market conditions continuing to improve and the next cut to the base rate widely predicted in November, it’s only right to expect lenders to remain in close competition as they continue to battle for market share. This will only help to fuel consumer confidence and encourage more to get moving plans back on track. Alongside this, we’ve been in contact with a number of new lenders looking to enter the market, showing the UK mortgage market is still incredibly attractive and presents real opportunities.
Out of competition comes innovation – whether it’s in products or criteria – which is only good news for brokers and for consumers. So long as the economy avoids any significant shocks and inflation continues to stabilise and improve, it’s likely to be a really promising end to the year and a strong start to 2025.
