Expert details what technological improvements they would like to see introduced
The importance of speed and efficiency in the mortgage market has continued to rise in importance, which has seen many distributors put an increased emphasis on technology.
Karen Appleton (pictured), head of mortgage lending at Skipton Building Society, said the lender’s strategy for customer and property assessment, from DIP through to completion, is to minimise touch points and data re-entry as much as possible, and provide frictionless, speedy experiences.
However, she added that this is not to take away from the need to have someone to talk to on those more complex cases.
Wish list
Appleton said her wish list for technological improvements is a long one. Principally, she would like to make it easier for customers and brokers to interact with the distributor.
“I would love to see a one stop shop for verifying the identify of customers, so that there are not multiple points in the home buying journey where they need to complete ID&V,” Appleton said.
She added that the building society is working on this becoming a more automated process for its customers.
“We are part way there and over 90% of customers are verified automatically, so it is about providing a digital identification route for those customers who currently do not meet the incumbent solution, and extending it to the whole value chain; solicitors, brokers, estate agents and valuers,” Appleton said.
Another tool, Appleton said she would like to see further integrated into the home buying process, and something the society is looking to expanded upon, is that of document verification.
“As an industry, I do believe we are a way off fully utilising open banking options for income validation, so whilst at Skipton we can and do verify income behind the scenes for 57% of customers, it would be fantastic if we could leverage the strength of open banking to further reduce the requirement for customers to obtain paper income proof, and provide the extra level of security to keep fraudsters at bay,” she said.
Enhancing the market
Appleton said the Home Buying and Selling Group’s aspirations for a Property Pack are ambitious and extremely practical.
“It would smooth the journey significantly if customer, lender and valuer had the correct information on the property at the earliest opportunity,” Appleton said.
She believes this would give a realistic view of the property value and reduce the number of down-valuations, or ‘over-estimations’ of the value of property.
“We all need a better understanding of what a lender’s valuation assessment covers, and we need to ensure customers seek options for surveys to protect themselves on what will likely be their biggest ever investment,” Appleton said.
Human touch
In terms of a human touch, Appleton said given the cost-of-living, increasing gig economy and non-standard make-up of households and income, she believes this will become more, not less important.
“Technology can help us to provide speedy decisions for cases that are low risk, but we need to be there to help customers, particularly those embarking on the first rung of the property ladder,” she said.
Appleton said it is about utilising experienced underwriters for what they do best, applying sound risk assessments and a pragmatic approach to complex income or family scenarios, within the risk appetite of the business.
If this knowledge is not required, Appleton said it is best to use technology to provide the ‘yes’, freeing up underwriters time to support brokers and customers.
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