"Lenders are able to give brokers much more control of the mortgage application process, which means they will have greater influence over the service they give their clients."
Brokers can’t deliver on this promise alone, however; lenders have a role to play here too, as it’s the lender’s responsibility to provide brokers with the technology they need to deliver a streamlined application process. IMLA research shows that over 70% of mortgage lending now goes through an intermediary, so it’s crucial that that lenders invest in their systems to make the administrative aspect of mortgage applications easier and less time consuming.
As a result, financial technology – or ‘FinTech’ – is front of mind for many key players in the industry at the moment. According to research by IRESS, 53% of brokers rate lender systems between ‘average’ to ‘very poor’ for ease of use. Smart lenders that embrace this new wave of technology solutions to give brokers a faster service and more control have a clear opportunity to gain a competitive advantage.
Above all else, lenders that are embracing FinTech are ultimately investing in helping brokers. Mortgage applications can be a bottleneck in the buying process and lenders who modernise their offering with technology are likely to avoid this. This is, of course, good news for brokers who are working hard to find ever faster mortgage solutions for their clients, who are doing battle in a highly competitive housing market.
Good lenders usually consider how technology can help brokers even before the application. Clever ways to communicate packaging and lending criteria and service levels help brokers assess the application’s chance of success. Real-time case management updates – offered via a secure online portal, including underwriters’ notes – enable brokers to see the status of their cases from their computer or smart device instantly. This increased transparency helps to make lending outcomes more predictable and is likely to give brokers greater control over their client outcomes.
Lenders can also use FinTech to automate their administrative processes. Around 75% of lenders offer scan and attach document upload facilities, reducing delivery times. Data feeds can reduce the amount of information brokers need to key in. Additional innovations such as online valuation submission and one-click document certification can also make application processes faster and more efficient.
Smart lenders are now allowing brokers to take control of the lending process by giving them the option to instruct the valuation, should speed be an issue, or wait for more certainty around the application by waiting.
By using FinTech to empower brokers in this way, lenders are able to give brokers much more control of the mortgage application process, which means they will have greater influence over the service they give their clients. As a result, FinTech will continue to drive positive change for the industry by streamlining the lending process and paving the way for fast, technology-driven mortgage lending that enables brokers to secure the most appropriate deal for their clients.
