It has been designed to support lenders in making smarter product, pricing, criteria, and affordability decisions
Mortgage Broker Tools (MBT) has announced that it will be launching a new predictive mortgage modelling tool that will help lenders build, price, and deliver improved mortgage propositions.
Called MBT Sandbox, the new tool has been designed to support lenders in making smarter product, pricing, criteria, and affordability decisions using advanced analytics and real-time data.
MBT said the tool takes a structured analytic approach to predict outcomes, based on multiple factors that impact choice when it comes to selecting a mortgage. It is claimed that Sandbox can accurately predict application volumes, measure the impact of changes to rates, fees and incentives, and provide comparison to competitor products.
“Over the last 12 months, we have been incubating MBT Sandbox in conjunction with a handful of partners,” Tanya Toumadj (pictured), chief executive at Mortgage Broker Tools, said. “It’s a powerful data-driven tool that will enable lenders to reduce time to market for new product developments and launch products with greater confidence as to how they will perform in the market.
“Lenders have traditionally used price as a lever to control volume and margin. However, this is outdated and unsophisticated – as it doesn’t take into consideration how often they are eligible and affordable against their peers, and this can often result in a lender quickly having to pull products because it has overloaded its service capability.”
Toumadj added that lenders can use Sandbox to ensure they are optimising their margin through more accurately targeted products, control lending volumes and distribution, and to focus the efforts of their sales teams.
“Lenders must juggle conflicting objectives, retaining existing members, competitiveness, profitability with good return on capital while treating the customer fairly and meeting regulatory requirements,” she said. “MBT Sandbox will help lenders achieve these goals and provide better outcomes for consumers.”
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