When it comes to making good use of technology and improving processes, the industry has come a long way. Lenders have made big strides, many embracing technology and are now demanding further development.
It could be said that the industry is moving towards a paperless era, and with the developments in technology over the past few years, this view is slowly becoming reality.
PriceWaterhouseCoopers and the Confederation of British Industry carried out a survey revealing that financial providers predicted only one-in-four of their intermediaries would send transaction data via the internet a year from now.
However, there has been a huge increase in recent years in the number of brokers transacting business online. This is coupled with the fact that there will undoubtedly be a number of enhancements from lenders to their online facilities this year.
There is plenty of sound material in the report, not least that it states many consumers prefer transacting through traditional channels such as on the phone and in person.
But technology in the finance sector should be there to facilitate fast processes and improve the customer experience. For example, this includes intermediaries making greater use of mobile technology so they can work on the go and provide instant quotes and documentation in their clients’ home and offices.
Tom Wood, managing partner, Foolproof said: “The industry push for online applications has been slow. Over the last four to five years it seems that the industry has lost its appetite for online application processes.
“The research that we have conducted revealed that 49 per cent of consumers expect to buy their mortgage online within the next 6 months. In 10 years from now, 64 per cent will expect to complete their mortgage application, from start to finish, online.”
Online…it’s the future!
Attractive designs with compelling and useful product and service information serve to populate any website and establish a web presence, whilst giving the potential customer all the information they could need about the financial products or advice being supplied.
It is true that direct marketing and advertising can result in new clients for your company, but surely a new client obtained on the back of an existing client recommending your firm’s services and saying how efficient and knowledgeable you are is much better?
Websites don’t have to be flashy or high-tech to get attention – all they need is the right information, and for that information to be presented as clearly as possible. A website should be treated like any other ‘brochure-ware’ for a company, with the added benefit of making applications easier and limiting the amount of paperwork involved.
According to Andy Moody, Managing Director of Loanoptions.co.uk, websites are now the most effective means of advertising, as well as offering instant connectivity to online applications and agreements in principle.
“Intermediaries are missing an important trick if they are not actively pursuing new customers by having their own website. It is the most efficient way of providing a shop window for an intermediary’s services and Loanoptions.co.uk has put its experience at the disposal of any intermediary who wants to develop an active sales presence in the secured loan and commercial finance market. Our websites are guaranteed to be compliant as well as not costing the intermediary a penny to create or maintain.”
He added “A prospective client can go onto the website, and with no input from the intermediary, fill in the online AIP form, which will automatically go to Loanoptions.co.uk. With our Rapid Referral Service, the intermediary is instantly notified of the new prospect and then has the opportunity to handle the client himself or let us deal with the whole transaction. This has got to be the ultimate win win scenario for intermediaries in 2007.”
Demand for online capabilities across the financial services industry is booming – driven by the expectations of today’s web-smart consumers who want faster service and easier access to information.
Tome Wood, explained: “The number of people purchasing financial products online has increased and we are seeing more and more people becoming more willing to complete the application process for these product.
“It will take a number of factors for the industry to invest in a slick and easy to use application process, but at the moment I don’t think the appetite is there. I think one or two brands will have success in developing an online system, but it will be 2 or 3 years before the industry has what consumers already think it should have.”
Online case-tracking is the latest trend for broker websites. This allows immediate access specific information regarding a certain case, making sure that intermediaries know exactly what is happening in the process.
According to the latest research, the majority of intermediaries are using the internet to benefit their business – with two-thirds of those questioned believing that the internet was ‘very important’ to their business.
The online tracking services are proving to be the most popular time-saving devices, with nearly 90 per cent of intermediaries regarding them as useful business tools.
Getting up to speed
IMLA’s latest survey of technology use by intermediaries revealed a number of clear pointers as to trends within the sector. While many applications were already widely used, there was scope to harness technology to help in a number of areas: case tracking; provision of a full online application system; and use of simplified registration techniques.
As expected, computers were an essential part of the intermediary’s office equipment, with 85 per cent using an office PC and 54 per cent a laptop computer, but take-up of other technology solutions among intermediaries was proving less rapid. For example, just 8 per cent of them used a pocket computer or other handheld device (Blackberry, Palm, etc).
Peter Williams, executive director of IMLA, explains: “Technology plays an increasingly important role in the industry and intermediaries are increasingly embracing technology to streamline the process, control costs and improve service.”
