Post MMR, and now running towards the MCD, we see more reliance on intermediary solutions as lenders still get to grips on handling regulatory requirements for their direct channels. Accordingly, lenders have been investing in improving intermediary systems as they are more happy to rely on their experience in making a compliant sale, than relying on internal call centre or branch staff.
It can still be difficult to originate a mortgage without face to face contact. This comes from a lender and borrower perspective; some lenders ideally want the additional security of an interview and borrowers still want to talk through what is the biggest financial transaction they will probably undertake.
From a technological perspective, another challenge is providing a true “omni channel” approach, effectively meaning that whether the borrower wants to make contact at a branch, via a call centre, from a desktop or mobile device, the same information is available at all times but displayed in the way the channel requires. The challenge here for large lenders is that to achieve this will require the integration of many different internal systems, many of which will be very inflexible. This may be where new lenders and the Challenger Banks have an advantage in technology terms, as green field operations mean that the technology can be created from an omni perspective from day one.
Face to face doesn’t automatically mean “in person”, and this is where technology can play a part, and probably where some exciting innovation will happen in years to come. Today, video chat is available and there is no reason why this shouldn’t be utilised more in the direct sales process. We are also seeing this technology being used in some more remote branches now where an applicant can sit at a desk and effectively have a “skype” style video call with an adviser at another branch or in a call centre.
In terms of pitfalls, it is probably a lack of vision that will cause some institutions to falter. For example we have a generation of web savvy, gaming customers reaching the age of wanting financial services, and they will be attracted not only by product, but also by the online interaction experience. Investing in a look and feel layer that is familiar to their domestic online experience will be very important and as above, this is an opportunity for new entrants to embrace this fact and attract significant market share.
But this doesn’t just relate to customers. We will also have a generation of staff and intermediaries that will expect the same sort of user experience from the systems they use.
