In two years’ time there will befewermortgage advisers buttheywill see customers in a more efficientand streamlined way, Phil Bailey, director of intermediaries at Twenty7Tec has predicted.
In two years’ time there will befewermortgage advisers buttheywill see customers in a more efficientand streamlined way, Phil Bailey, director of intermediaries at Twenty7Tec has predicted.
Speaking at the Dock9 Event, Mortgages AI: The Current Reality, he said that there will be a shifttowardsfaster digital advice without having to rekey data.
Bailey said: “If you’re seeing four clients a week, you’ll be able to see 10, 15 clients a week and process more applications because it’ll be easier and more efficient, meeting the needs of their customers.
“We will start to see customers come to brokers and move from one brokerage to another. The numbers in the adviser world will drift off but the market will get bigger and bigger. People will always need houses and need to borrow more money.”
The fact finding session will involve an upfront helping the customer do the research before coming to the broker.
He said in the next two years open banking will revolutionise the industry with all the information, such as history of the property and the borrower, such as bank statements, being lined up and ready for the broker.
Bailey added: “Customers want to research products and want to be empowered even if it’s not the end product they pick.
“The broker will be given a portfolio of the client and using their professional view of the market can have a chat about where the client wants to go in the future and from that what products they can recommend.
“You won’t need application forms in the future. This already exists. A few people are working on this. We are, Iris and The Mortgage Brain are too.
“There’s a lot of people pushing for the better of the industry and no one wants to actually repeat data, you want someone else to fill in that fact find data for you, pass it onto the product launch then onto the lender and you want that done in real time.”
He said that there will be less time wasted bymortgage advisersand lenders will get more value because the data and applications being sent to them will be more accurate.
Bailey said: “This journey is not there yet but will be in the next couple of years. With a lot of lenders and collaboration in the marketplace we will achieve this very quickly.
“Once there are enough lenders in the marketplace doing the right thing for the industry, especially for the intermediaries, this will snowball and lots of people will start doing this and it’ll be a seamless journey and you’ll look back and think why did I ever have to fax that information or email that data.
“It’s about education to get customers and lenders and intermediaries all on the same page to know it makes for a better industry and if its more efficient industry, rates come down, margins are squeezed, everything is better and hopefully lenders pay more proc fees.”
Bailey also predicted that in a decade’s time lenders, with the help of technology, lenders will ensure they give the best rate for customers.
He thought this is the biggest threat to intermediaries, citing the fact more recentlythatthe FCA, for example, in its Interim Mortgage Market Review, talked less about advice and started highlighting adaptive tools to help the customer upfront.
Bailey added: “The world is changing and the biggest piece of advice is to embrace tech. if you don’t have a website get one and if you do but it’s not updated regularly, change that, update it and put something on there to guide customers to you as an adviser.”
