Nearly half of brokers see robo-advice and technology as the biggest threat to their business in the next three years, according to research from Legal & General Mortgage Club.
L&G surveyed brokers at last week's Mortgage Club Live Conference about their views on the future of the mortgage market.
Jeremy Duncombe, director of the Legal & General Mortgage Club, said: “Instead of viewing technology as a threat, advisers should see it as an opportunity and an enabler to help them meet the changing needs of the market.
“For many borrowers, the advice of a human broker remains central to their process of securing a mortgage, but advisers cannot ignore the implication of a rising generation of future homeowners who expect the incorporation of technology in all their financial transactions and communications, and in many cases a holistic offering.”
A smaller number of brokers – 22 per cent – believed customer behaviour was the biggest challenge to their business and a similar number said non-industry disruptors deciding to enter the mortgage market.
L&G’s research also found 83 per cent of brokers expected to diversify their business in the next 12 months by adding new products, services or technology to remain competitive.
Just 17 per cent of intermediaries did not expect to diversify over the next year.
Mr Duncombe said: “Whilst it is positive to see that more than three-quarters of brokers do plan to diversify and adapt their businesses, including with technology, as an industry we must encourage the rest to not shy away from technology, but instead use it to futureproof their businesses and make their propositions even more appropriate to the next wave of younger borrowers.”