Expert examines why brokers have been slow in adopting sourcing systems
We have seen a number of lenders pursue integrations with all major sourcing systems in the last few years, but broker adoption has remained modest, that is the view of Jonathan Evans (pictured), national account lead at Skipton.
Evans added that he has seen first-hand the significant investments Skipton have made in technology to streamline the mortgage application process for brokers.
“However, when it comes to APIs (application programme interface) despite these investments, many brokers are still reluctant to fully adopt these new technologies; in my opinion there are a number of factors slowing wide-spread adoption,” he said.
Fear of Change
Evans said many brokers have been in the industry for a long time and have become comfortable with the processes and tools they are currently using.
“Introducing new technologies can disrupt their workflow and require them to learn new skills, which can be daunting,” Evans said.
He believes this is especially the case in a volatile market like we are experiencing now, where brokers’ workloads may be increased due to customer demand for remortgage advice, and having to duplicate work with lenders due to sudden rate changes.
Brokers may also not have the resources they need to fully understand how to use the new API application systems, which Evans said can make them hesitant to adopt them.
Without proper training and support, he said that brokers may not understand the full benefits of utilising the technology.
“It is not one size fits all; for example, Skipton have fully integrated our systems with Twenty7tec’s Mortgage Apply system, so brokers can submit the DIP and full mortgage application with us via this system,” Evans said.
However, he said for lenders that use ‘off the shelf’ packages, in some instances, the broker can only take the application so far before having to log into the lender’s online application.
“In addition, the types of customers or schemes and criteria they can place via API may vary from lender to lender, leaving the broker in limbo and second guessing whether their case is out of scope and if they need to log into the lender system or not,” Evans said.
As with any new technology or process, Evans said teething issues can arise in the bedding in process following launch.
Once a first impression is made, if it is less than great, Evans said unfortunately it takes a long time to change it.
Encouraging change
Evans said overcoming the adoption barriers will require a concerted effort from technology developers to ensure the systems are accessible and easy to use.
“There needs to be a focus from lenders, sourcing system providers and networks and mortgage clubs, to educate brokers on their benefits,” he said.
Identifying broker advocates, Evans said, who have invested their time in the new process and are now reaping the rewards, could prove beneficial if they are willing to share their success with peers.
Greatest opportunities to leverage technology
Evans believes blockchain technology has the potential to bring significant benefits to the housing and mortgage industry.
“One application of blockchain in the mortgage journey is the creation of a share digital platform for all parties involved in the process, from brokers and lenders to solicitors and surveyors,” he said.
Such platforms, Evans said, could be used to provide a secure and transparent way for different parties in the mortgage process to share information and collaborate.
“This could in turn increase efficiencies by reducing the time and costs associated with manual processes, such as document management and verification,” Evans said.
Evans added that this would also improve transparency and accountability by creating immutable records of all transactions and interactions between parties, reducing the risk of fraud and errors.
“A further benefit would be enhanced security by ensuring sensitive data is encrypted preventing data breaches and cyber-attacks,” Evans said.
As well as all these benefits, Evans said it could mean a much better customer experience with less delays and duplication in the process.
Do you believe brokers have been reluctant to adopt lender’s sourcing systems? Let us know in the comment section below.
