From lenders to lead generators the mortgage industry is embracing technology, but does this mean it is losing its personal touch?
Technology is affecting every link of the mortgage chain, with customers registering their details on the web, intermediaries using technology to source the best deals and lenders responding to enquiries online and using computer-based fast-track underwriting processes.
All these advances in technology make applications quicker, provide a wider choice to the client and save on administration costs throughout the chain. It is therefore unsurprising that technology continues to dictate advances within the industry, constantly pushing speed of service one step further, while the loss of personable relations is barely lamented – to the profiteer anyhow.
However, the mortgage consumer continues to rely on the personal touch of mortgage intermediaries throughout the country. While technology may enhance good service, it is important to remember that a human touch carries equal clout when selling a mortgage product.
A new step for mortgages
Last week the industry saw GMAC- RFC became the first lender in the UK to offer an automated valuation models (AVM) through the launch of its Point-of-Sale Offers (POSO) system. POSO will provide instant valuations on residential properties.
The technology has been received as a significant advancement in the mortgage industry, but as with all great offerings, a personal, reliable source is needed to differentiate one company’s offerings from another. AVMs speed up a service but are not full proof – this is particularly important to know for any consumer who has decided not to get a survey.
Hugh Nichols, partner at Badbury Berkely Mortgage Services, says: “AVMs will work, but they will only work on lower loan-to-value (LTV) mortgages and will only apply to others that are comparable within that particular postcode.”
Striking a balance
Bob Scott, director at Open Door Solutions, believes the industry needs to respond technologically as the consumer becomes more communications-savvy. He says: “Over 50 per cent of our enquiries come through electronically and expect an answer back electronically. For the younger generation who do everything online, I think it is important to provide a service they are used to.”
Scott added that while he believes in responding to consumer trends, some lenders are trying to force intermediaries down the electronic route as it reduces their origination costs. Andy Pratt, chief operations officer at Alexander Hall, adds: “As a bigger firm, we embrace advances in technology. Paper can get lost; files can get lost, by doing mortgage applications online it means we can manage our criteria as you have to put the information in correctly. A lot of lenders have an underwriting service, so on difficult cases it’s important that lenders have someone you can call before you do an online application.”
Clare Mortimer, senior press officer at BM Solutions, says: “Utilising the latest technology means brokers get speedier and more effective service and systems. However to offer a truly exceptional service, lenders can’t afford to forget the continued importance of having ‘real people’ available. You cannot simply dictate to brokers how they must do business without a certain level of flexibility; at BM Solutions we work hard at producing all-round five star services and this includes features such as our business development manager (BDM) help desk and premier service desk.”
Working in harmony
There is always a need for a personal touch. However, this has to be balanced with the appropriate technology. Darren Pescod director at The Mortgage Broker Ltd, explains that blindly selecting technology for technology’s sake, will kill the element of personal touch but if the balance between people, technology and process is correct it will surely only enhance the proposition and at the same time give customers an experience that will keep them coming back.
Pescod says: “Customer Relationship Management (CRM) software is a prime example of technology which, when implemented correctly, enhances the personal touch for the customer. Imagine yourself as a client calling for information on your current mortgage application – the first person to answer the call has a screen which pops up the customer’s complete application history at the same time as the call is answered. The adviser greets you with, ‘Good morning Mr Jones, my name is John, how can I help you?’ Has that killed the personal touch or has it enhanced it?”
Martin Wade, director at Mortgage Options, says: “Technology assists us in delivering our service through automated sourcing, desk-top valuations and online tracking of mortgage applications through our back office systems. However, these systems are only as good as the raw data entered and this is where the personal touch and experience comes in.”
Technology aside, ultimately there is no substitute for common sense and experience, and while you can use technology to improve efficiency and cut costs, ultimately people will continue to buy from people.
