Brokers are only using 20 to 30 per cent of the technology available to them, stated Mortgage Brain’s chief executive, who challenged the industry to embrace digital advancements to better understand customer behaviour and further client engagement.
Speaking at yesterday’s (16 September) Financial Service Expo in London, Mark Lofthouse said that despite many technological improvements already being used within the mortgage market, from point of sale through to back office support, more integration should be considered.
“Technology offers the biggest source of efficiency, and I don’t know exactly what types of technology individual brokers are using, but I can hazard a guess that many brokers are only using 20 to 30 per cent of what’s in front of them.
“So I urge brokers to find out more about what’s already out there and best utilise it where possible.”
During the same session, Ernst and Young’s director of creative and experience Oliver Kenton stated that online property portals, such as Rightmove and Zoopla, are not a “direct threat” to the broker industry, when questioned on this.
He added that the advantage they do have is being the first port of call for potential buyers on the home-buying journey.
“In addition to helping people find houses they can also provide valuable insight and education but as a complex transaction which happens only a handful of times over a lifetime people still require a strong level of help and expertise that only brokers can provide.”
Meanwhile, the Financial Conduct Authority’s technical mortgage specialist Keith Hale re-stated how big an event the Mortgage Credit Directive’s introduction will be for the second charge market.
The MCD will be implemented from 21 March next year, but firms are able to start adopting the rules from next week.
Mr Hale acknowledged this meant firms would have to be clued up about when lenders, for instance, were likely to be changing and how this would affect key issues such as product disclosure.
“Lenders need to be communicating if they are going early,” he said.
One of a number of changes affecting both first and second charge activities is the introduction of the‘European Standardised Information Sheet’ document replacing the ‘key facts illustration’. However, while second charge practitioners will have to use the ESIS from implementation, those undertaking first charge activity can use a KFI with top-up information until 21 March 2019.
Mr Hale explained that this means products could be displayed differently in different documents to consumers for up to three years.
“Advisers will need to be comfortable with both forms of documentation and how they take customers through them.”
After broadcasting a similar message at a conference last week, he again urged second charge advisers who have not begun the authorisation process to start immediately.
“Please start thinking about authorisation, for those who haven’t – shame on you – the clock is ticking.”
peter.walker@ft.com
