FR: You recently partnered with Atom bank, which is the first fully-digital bank. What was it about this partnership that appealed to IRESS?
The retail banking sector is undergoing a period of huge change, with new regulation leading to an increased need to deliver an improved digital customer experience. Atom has tackled this head on and its ethos mirrors the approach we take with our technology: enabling the consumer to use it when and where they want. Our highly integrated, multi-channel offering lends itself to innovative businesses like Atom who want to create that digital experience. In addition our MSO system has been re-engineered to support this next generation of digital banks, alongside the more traditional high street lenders.
FR: Your XPLAN software aims to make it easier for intermediaries to research and secure products from providers; why do you think intermediaries are turning to increasingly multi-functional software?
Over the last few years we have seen an increasingly powerful need among intermediaries to have a technology solution that can cope with regulatory change and deliver real cost-income benefits. Yet the latest research by Investment Trends shows there is still not a strong alignment of technology. As many as 87% of advisers use more than one platform, and 49% say they are prepared to pay for better integration between platforms and software. They want technology to deliver value creation and efficiency. What we offer through XPLAN is a single, unified software solution to this.
Specifically in the sourcing space, the affordability and suitability regulations are very strong, advisers have to show they have made the appropriate recommendation. This ultimately means you need a strong link into sourcing software, which we can deliver through the XPLAN integrations into our in-house sourcing capabilities. This is why multi-functional technology is becoming ever more important, and we believe the demand for XPLAN will continue to grow as regulation impacts the industry.
FR: Do you think the mortgage market will face more disruption as a result of the Mortgage Credit Directive, or do you think lenders have had enough time for a smooth implementation period?
The Mortgage Market Review was a big change, particularly for lenders. The need to demonstrate appropriate checks around affordability and suitability has created a need for technology. Without technology’s support, interviews with customers and the time it takes to get an appropriate mortgage would become incredibly long and costly, and the potential of consumers not seeing the process through to the end would grow. The MCD and how that will flow into other regulatory changes is not just an additional layer on top of the MMR changes. There are new regulations lenders will have to look into, such as second charge mortgages coming under MCOB for the first time, and the key features document will have to change. All lenders will have to move to the Key Facts Illustration Plus or the European Standardised Information Sheet (ESIS) in less than 12 months. Adapting to these changes will take lenders’ efforts away from innovation and ongoing investment in systems, when in actual fact investment in technology can help them adapt to regulatory change.
FR: You are exhibiting at the Financial Services Expo in London; in an industry that is increasingly adopting technology, is it still important for intermediaries to meet providers face-to-face?
Our ambition is to be the technology partner of choice for all of our customers, and for me, the way you develop a partnership is by having a strong alignment from the outset, so there’s a real sense you’re working towards a common goal. Relationships like that are stronger when you have face-to-face contact, it builds the trust and understanding that the partnership needs to be based on. For software it is especially important for the customer to be able to see first-hand what it can do and the benefits it can bring. We recognise the value of this in building relationships with our clients and our feedback on this has been really positive.
But once a customer has taken on our product we believe that face-to-face contact time is equally as important. We normally immerse our new clients in the technology, starting with a series of demos to give them a flavour and that would then turn into a more detailed, in-depth run through and how we can apply it to their business. This process gives us an understanding of their business which enables us to apply the software solutions to their specific business model.
FR: If you weren’t in financial services, what would you be doing?
I think I’d like to be a teacher. I’d like to teach university students organisational and leadership psychology - I’m fascinated by it and I think teaching is a really positive thing to be able to do. I’d love to do this at some point in the future as I’m really keen to take some of my experiences and pass them on to other people and help them develop.
