Good service has always been a slightly ethereal quality and its exact components can sometimes be difficult to put ones finger on. In some restaurants, for example, the meals arrive almost effortlessly, while wine and water glasses are replenished without the need to ask. Waiters have a good knowledge of the menu and discussing various dishes is a pleasure rather than a chore and everything just seems to fall into place. In other restaurants, there is more of a Fawlty Towers feel to things and while laughable, the experience is certainly not enjoyable. The same is true of the mortgage market and while dealing with some lenders is a pleasure, dealing with others is a frustrating and often laborious process.
In looking at lenders’ service standards it should be a given that they are improving. Those that remain static in such a fast-moving market will find themselves losing ground at an alarming rate and face real difficulties in catching up, let alone repairing the reputational damage they have done to themselves.
More importantly, lenders need to be asking themselves how close are they to what they could be offering. As technologies and processes change, so does a lender’s ability to service its client base and they must be continually investigating where and how they can improve.
In this need for continual improvement, mortgage lenders are no different from other operators in the mortgage market and indeed in the wider commercial community. While there is much to consider in relation to new technologies and procedures, lenders must also be aware that good service does not need to be complicated and that, often, simply doing the basics well is all it takes.
Talking the talk...
Where many lenders fall down is in the public statements they make. In today’s environment where brand, image and marketing are so important, the market is littered with promises about service levels and the passionate attitude firms have for their work and the drive and ambition they have to consistently deliver excellence. Unfortunately this, in the vast majority of cases, is hyperbolic marketing jargon, and the reality is far removed from the promise.
So what does make for excellent lender service? For packagers and brokers dealing with lenders, the top priority is probably the ability to deal with enquiries effectively and quickly. Whether information on price, product or criteria is being sought it should be well within every lenders’ capabilities to give an accurate and timely answer to questions about their own suite of financial products.
All help desks should have an up-to-date knowledge of the products on sale and be available to discuss them in detail. Too often, it is difficult to get hold of someone that has the information required, messages are not picked up and finding out the simplest pieces of information can take hours.
Many people rail against the use of automated phone systems and, in a perfect world, it would be great to speak to someone personally who could provide the information required. This is simply not viable in terms of the numbers and economics involved, but there is no reason why lenders should not have phone systems that are sophisticated enough to provide automated responses where appropriate, while being able to route calls through to operators when necessary. How many times are intermediaries cut off from lenders on a repeated basis simply because the phone system is not good enough? In situations where call volumes are high, the need for call back options are understood and accepted, but the return call should come within half an hour and not several hours later, if at all, as is often the reality. For those who get this right, the difference it makes can be immense.
Accurate communications
The mortgage market is all about the communication of information between interested parties and the faster and more accurately this happens, the better the service and experience will be for everyone involved. Lenders’ online systems have made vast improvements in the application process, and mandatory fields in the online documents have meant more forms are being processed first time round. Like so many areas of modern life, the internet has revolutionised the way the mortgage market works and has delivered huge improvements.
However while the application process has got better, lenders still need to work hard on communicating their products to the market and the changes that are made to them. It is not enough to simply change them on their websites or through the sourcing systems. They should be more proactive in letting their business partners know. It is not too much to expect a simple e-mail explaining any changes to the product range. Not only would this prevent many cases being submitted for products that are no longer available, but avoid intermediaries having to back-track on recommendations made to clients about products they believed still available.
Large business volumes
Handling large volumes still creates difficulties for some lenders and, given the numbers involved, this is understandable. Problems normally arise when lenders offer exceptional products to the market and are then hit by a wave of applications. Some lenders have famously had to shut their doors to new business in this situation, but in the main, a backlog that takes time to deal with simply builds up. In these circumstances, lenders could be more honest about the delays involved and ensure that those placing cases are aware of the issues surrounding turnaround times. Again, it is a matter of communicating effectively and accurately with business partners and facing up to the reality of a situation rather than hoping the problem will iron itself out and be forgotten about.
Not just a lender issue
It is easy to simply blame lenders for all of the service issues in the market, although this would not be a fair reflection of what is actually going on. Intermediaries face their own problems and whether it is self-employed advisers trying to deal with too many cases at once, or bigger firms unable to effectively deal with all of their enquiries, there is a need for honesty with the end client. The real discipline is being able to either pass business on, or explain that things might not happen as quickly as expected. However, the threat of losing the business means many shy away from such a move. The irony is that, in the long run, a firm that can demonstrate such honesty to its business partners and clients will create a reputation that delivers a pipeline of business into the future that will far outweigh any short-term losses it would register as a result.
Vagaries and interpretations
In looking at lenders’ requirements for things like proof of identification and residence, regulation has helped create consistency in what is and is not acceptable. This has unquestionably improved dealings between brokers, clients and lenders and is very welcome. However, for intermediaries dealing with lenders across the market there still remains the individual vagaries and interpretations that each have on the regulations in place and the documentation they will accept. This is perhaps reflective of the competitive market in which we deal and is certainly an example of the way firms look to differentiate themselves and their processes. However, where possible, it would be helpful to move to a situation where there was a definitive cross-market acceptance of a single list of required documentation which would further improve the interaction between the involved parties.
There is no doubt that service levels from lenders have improved. Product information is easier to access, applications are handled more efficiently and cases can be tracked better than ever before. However there are still improvements that could be made. The biggest improvements also revolve around the simplest of things and making sure they are done well. At the heart of it lies communication and as long as lenders are speaking effectively to their partners then problems can be resolved as and when required. Making sure these lines of communication can provide accurate and timely information is imperative. Ensuring that they are also two-way and enable lenders to push out information regarding product or criteria changes is equally important.
Service will never be perfect and problems will always arise when products are changed or volumes are high. However so long as good communication remains central, and lenders strive to provide service more akin to a fine dining experience than a muddled weekend break at Fawlty Towers, brokers and their clients will be happy.
Justine Tomlinson is marketing director at Mortgage Next
