Transparency, certainty and access are much needed
As the property finance market grows and becomes more complex, sophisticated technology is needed in order to provide much needed transparency, certainty and access, according to Miranda Khadr (pictured), founder and CEO of Pitch 4 Finance.
In the year since its launch in April 2021, the digital funding marketplace has grown to encompass 200-plus lenders, 1,000 registered brokers, and 2,000 direct customers. By the end of the year, the business aims to grow its lender base to 400.
Read more: Pitch 4 Finance reports £66m of enquires since launch to brokers
Khadr, with her own history as a broker in the market, told Mortgage Introducer that this success reflects the growing need for certainty, choice and transparency in the mortgage market.
Pitch 4 Finance allows brokers and direct customers to source the right mortgage for their needs through a two-tier system, which analyses the offerings of those lenders on its books, while also conducting additional whole of market research in order to benchmark those results.
Khadr said the service aims to provide 20 to 30 solutions in the first instance, factoring in the best deals, not just the lowest prices, and giving brokers and borrowers a starting point from which to proceed with their research.
Read more: Pitch 4 Finance offers free cases for brokers ahead of launch
“We’re trying to get deals placed quickly, while also getting the best deals for the customer,” she added. “It’s proving really effective for complex deals. We’re seeing a lot of business loans and business finance, commercial mortgages, portfolios, development finance.”
This, Khadr said, proves that a digital, automated approach can be tailored to work for those complex parts of the market that previously would have relied only on a human, relationship-based approach.
While there is always room for those relationships, this arguably risks missing out on deals that do not fit within a broker’s existing cadre of lenders.
“My aim with brokers and with the direct borrowers is to provide certainty of getting the best deal, rather than just thinking you’ve found the best deal,” said Khadr.
“It’s also about access - there may be a new lender that’s just launched and doesn’t have the business development capabilities or money for marketing yet, and therefore people are oblivious.”
This not only opens up options for brokers, including those who might be newer to the market or looking to build up their business, but also levels the playing field for lenders in what is an increasingly lucrative and competitive space.
This, in theory, leaves a lender’s success up to whether it has the product and proposition to succeed, rather than its legacy relationships and historical market standing.
“Our research also helps give an idea of areas to develop for lenders,” Khadr added. “You’ve got an overarching snapshot of what cases are where.”
The challenge, however, is in keeping on top of the development and evolution of technology and data analysis in order to continue to provide a value-add service.
To this end, Pitch 4 Finance is looking to further its ability to quickly track product changes and be “on the front foot” as much as possible.
Progress can be particularly difficult in a market that has traditionally shied away from digitalisation, only begrudgingly adopting newer processes during the pandemic due to necessity, in many cases.
“You’ve got to bring science and research to what we do,” Khadr said. “It’s an easy excuse to rely on just ‘relationships’. I don’t see that one is there to take over from the other, but it’s got to be hand in hand.
“You can have a great relationship, but why shouldn’t it be transparent and automated? That doesn’t mean losing the human element, but what it does mean is your research is proven, presentable and professional.”
She added: “You want it to be easy, save as much time as possible, and creating the best client outcome. That can’t be left down to guesswork or the never-ending proclamation of ‘I’ve got great relationships’. It’s simply not good enough, and customers should expect more.”
This is particularly true in a growing, increasingly complex market which is over-crowded with lenders and products. Having a relationship with a select few providers is no longer enough for a broker to be successful.
This also plays into the key topic of diversity and inclusion within the property finance market. Relying purely on historical relationships tends to support the status quo, which in this market is not a particularly diverse one.
By opening up the market and allowing for transparent, research-based solutions, Pitch 4 Finance is also paving the way for brokers to enter the scene who do not necessarily fit the existing mould. This can only be a good thing for the market, and for the customers it serves, Khadr said.
It also allows borrowers to gain clarity on the advice they are being offered, she added, creating greater checks and balances and demystifying the market.
