A number of people reading this article will now have satellite navigation systems in their cars. Others will have camera phones, ipods or perhaps broadband technology. All of these things will have enhanced the lives of people, in one way or another, either through time saving, making things easier, enhanced enjoyment or even getting satisfaction of showing off a new gadget to your neighbours. Within our own industry we have seen technological advances, such as the onset of binding decisions, whereby intermediaries have seen their working lives enhanced through reduced paperwork and time saving that has led to increased business and/or increased leisure time.
Technology will continue to evolve and will provide opportunities to create greater efficiencies and enhance the working lives of intermediaries. These advances will come from within the industry – from lenders particularly – but also from outside such as developments in database and website technology that can enhance an intermediary’s marketing and service. So keeping up-to-date with technology has never been so important.
No doubt there will be many people reading this who are sceptical about new technology. I can understand that and technology has to be used appropriately. The important thing is to keep abreast of developments; implementing them is another. Plus, we all caught onto CDs eventually.
Home-grown talent
Starting at home, the growth of technology within the mortgage industry over the last couple of years has been a speedy affair, as the market has moved away from old fashioned fax machines and decisions-in-principle (DIPs) to automated decisions that are binding. Along with the likes of cascade, these systems have led to better business practice among intermediaries, saving them both time and money and providing greater speed and certainty at the point of sale. But what of future technology?
Well, technology is moving ahead at a fast pace so anything is possible, at least for those in the market with vision and an appetite for innovation. There has been much talk of late about providing instant offers at the point-of-sale, with much speculation that there will be three or four lenders providing such a facility by the year end. GMAC-RFC has been mentioned here within the speculation and edeus is also making a lot of noise.
This is why automated valuation models (AVMs) have suddenly appeared quite prominently in the press of late. The use of AVMs is another example of how quickly technology is moving forward. However, AVMs are, at present, already being used by some of the large lenders in the UK, for remortgages and validation purposes. It is expected that the use of AVMs will grow and the way in which they are used by lenders will evolve too. Those lenders lagging behind in the technology stakes will grow even greener because technology is so important these days and new developments fast become the norm rather than the exception; so those without a technology offering will suffer unless they find a small niche to serve.
As long as lenders use technology appropriately – and not use technology for technology’s sake – it will generate even more opportunities and benefits to intermediaries. Today’s consumer is cash-rich and time-poor so time is an important factor. Quick decisions and fast offers not only save a considerable amount of time for the client and the intermediary, but it also offer greater control and certainty. For the intermediary, this enhances their own service and reputation, as well as freeing up time to create more sales.
Understandably, some intermediaries are often wary of anything new, as has been seen with some intermediaries’ reluctance to move away from DIPs. However, technology will only continue to play a more important part in the industry and things such as online systems will eventually evolve from being a purely functional tool to something that is more engaging. This means that intermediaries and lenders alike will have to learn to accept that advancements to technology will become quickly become commonplace. We all need to keep an open mind and be imaginative about what the future could bring. Science fiction can become science fact.
Looking over the garden fence
Technology being employed by certain lenders today can improve an intermediary’s efficiencies, by drastically reducing paperwork and speeding up the whole process. This in turn enhances the service provided to the client. Yet the power of technology does not stop there as technology provides many other opportunities to enhance marketing and service.
In today’s world where we have more demanding consumers, more technology and the increasing use of online search engines and choice, keeping hold of clients is becoming harder and harder. It is important therefore that intermediaries use technology to the best of their ability to attract new business and retain existing clients.
This need not be a complex strategy, indeed the best strategies are the ones focusing on doing the simple things well. Things like having a good website. Your website is increasingly the face of your business and the first port of call for clients, particularly prospective ones. The internet will never replace the need for face-to-face advice, but it can enhance your service and image and ultimately increase business.
The internet is commonly used as a means of getting a feel of a company before contact is made and therefore the first point of call for prospective clients. That is why it is so important that intermediaries’ websites clearly reflect their business according to the type of client they wish to attract. Like an advert, a prospective client can develop a subconscious and instant impression of your company. As they say, first impressions count.
Now these prospective clients could be from recommendations, which are the best form of advertising, but even these will probably want to make up their own minds before making contact. There is also a lot of talk about buying mailing lists and search engine optimisation. To make this work, intermediaries need to understand and measure where new leads come from and what key words are being typed into the search engines. This is necessary to avoid jumping onto a bandwagon that is going nowhere.
Once into your website, being able to find relevant information quickly will be crucial. It sounds obvious, but it will also be very important to have your contact numbers very clear and allow people to contact you by e-mail too. Those who enquire by e-mail should be contacted promptly. And remember keep any e-mail form simple. Video streaming is also becoming more accessible, so this could be another area whereby intermediaries promote themselves on their website – but keep it short
Your website is also important for keeping your existing clients up-to-date. There is now technology available that can make this easier and more targeted. These are called RSS feeds.
So what is RSS? Well there seems to be some confusion as to what this stands for, but the common thought is that it means ‘Really Simple Syndication’. Basically it can take the hassle out of keeping clients up-to-date on subjects that are relevant to them. For example, a buy-to-let client can then receive buy-to-let news feeds you provide on this subject, automatically, once added to the RSS reader.
Basically RSS feeds are just a special kind of news feed that can be selected to recieve, which can optimise the relevancy and increase sales. A better way to get a feel of these is to go the BBC website and select a feed that is relevant to you and see what happens.
Currently few websites will have RSS feeds, but it is growing in popularity. Also the number of people with news readers (the software required to check RSS feeds) is growing too. You could also use RSS feeds to display the latest headlines from other websites on your site.
Moving on, I also believe databases are another area of technology that can be of great value to intermediaries. There is a wide range of software available and it need not be expensive. A database should record every interaction with a client and help build a profile for future communication. The trick is to keep this up-to-date because clients’ needs change as their careers change or they get married, divorced and so on. Brokers can use databases to enable themselves to send e-mail or even text updates to clients, so reducing the chase-up calls.
Finally in this section I will end on wireless technology. This is a new area which will begin to become more popular. Wi-Fi is wireless networking, making it possible to connect to a computer or network without cumbersome cables. Wi-Fi will fundamentally alter the way people use the internet – allowing people to go online in places that previously weren’t possible, in greater comfort and with a more relaxed mindset. This means that it will enable intermediaries to access online applications at their clients’ homes (if they have Wi-Fi and allow it, of course) and at any of the Wi-Fi hot spots that are now appearing around the UK. This means an intermediary could arrange a meeting at a number of neutral locations, such as hotels, fast food restaurants or even an airport. They can then dial into the internet and obtain an on-line binding decision for a client – right there and then.
Back to the future
Going forward, who is to say the technology we see in films such as Minority Report, with one-to-one advertising tailored for each client’s needs, will not become a reality? Technology is increasingly shaping the industry and this is only likely to increase over the next few years. What we consider key technological advances today, may soon end up outdated and defunct when new technology and developments arrive; we have certainly begun to see DIPs become a thing of the past due to new technology and we will see a continued evolution in this area. And who knows, in the more distant future we may even see the use of artificial intelligence.
Back to the modern day, technology is moving forward and provides real opportunities for intermediaries therefore it should be embraced and not feared.
