Today’s customer expects to be able to access the products and services they want with the push of a button. This includes a wide range of financial products available on digital platforms.
Research shows that millennials in particular are increasingly trusting when it comes to technology. Even when it comes to mortgages they are driving digitalisation with just under half willing to use an app to purchase their mortgage.
Mortgage lenders are adapting alongside the latest developments in technology to provide secure platforms for customers to share and verify documents online, making it easier than ever to switch to digital-based accounts.
With more people switching to digital-based accounts, we need to ask how customers can be expected to provide paper proofs if they no longer have them. The application process will only be elongated, adding yet another week or so to the procedure.
Research shows that three out of four young adults have switched to digital bank accounts and four in ten customers believe that chatbots and robo-advice systems will provide a more efficient and convenient way of talking to an advisor, saving both time
and money. There is a distinct appetite for digital mortgages as more than half of customers access their accounts online. This shows that the right technology could offer vast potential to lenders, and used appropriately will complement the needs of the customer
Lenders need to have a clear understanding of what their customers actually want from the mortgage process and recognise that there will be differences between each individual. Streamlining processes, altering efficiency and lowering the cost of service
will be instrumental to this.
This will also need to be digitally inclusive whilst remaining compliant with customer demands. They will be able to have their electronic identity and scrap the need for paper proofs. By improving processes, customers will also be able to validate affordability
through categorisation and will further be able to deliver personalised options. Prequalification will allow providers to predetermine the right products for the right people, simplifying the process and personalising the needs of the customers.
Providers also need to consider how they want to use technology. They need to think about what the customer wants and how using technology can help them achieve these for each individual. Keep in mind that with more than 11 million customers, there will
be a lot of demands.
The rise in mortgage application times is due to the MMR (Mortgage Market Review) and guidelines have been interpreted by lenders, resulting in more detailed, robust and specific applications. Although this hasn’t stifled innovation, regulation has encouraged
Developments in new tech-enabled models and enhancements to transformation projects can update legacy systems, replacing them with modern, agile and adaptable platforms. Transforming the back-end of the platform and moving towards a more flexible and innovative
model will be tricky. It’s important to consider how providers will transfer all of the background information stored in previous platforms.
Evidently, with advancements in technology already shaping 2018, the mortgage market is subsequently due to change as well. Both customers and regulations will adjust to keep up with such developments but how much they change will be dependent on their appetites.
The most principal factor remains – the customer needs to stay at the heart of any change.