"The panel agreed that brokers needed to use this opportunity to proactively contact clients and ensure they had the support they needed over the coming months."
In a recent panel debate of industry figures, everyone had relatable experiences of the seismic shifts in our working and personal lives. There was general agreement that the lockdown had both brought in transformations of technology which had previously been years off and exposed huge inefficiencies in our systems and processes which are still to be addressed.
The ‘virtual’ panel discussion – something which probably would not even have been considered at the start of the year as we’d have all agreed to travel across the country to be there in person – featured Jane Benjamin from Sesame Bankhall Group, Jeremy Duncombe from Accord Mortgages, Phil Bailey from Twenty7Tec, Craig Hall from L&G Mortgage Club and David Burrows from the Equity Release Council. Hosted by Power of 8 members Paul Lewis from the Mansfield Building Society and myself, the questions aimed to get a real understanding of how our current environment was faring and what the future was most likely to look like.
Better use of technology
Everyone was in agreement that technology had been the hero of the crisis. Not only used to bring everyone closer together through video calls and virtual events but also increasing efficiencies in our everyday tasks. The speed of which new systems such as Automated Valuation Models (AVMs) and desktop valuations were implemented, the prompt acceptance of digital documents and the ways in which customers were happy to move to ‘remote’ advance demonstrated that the industry was ready for these updates, but needed something monumental to push the transformation over the line.
A hybrid of communication
Jane Benjamin agreed that whilst technology was an enabler for efficiency, it should not replace the human aspect. David Burrows from the Equity Release Council added that the restrictions placed on physical interactions had presented multiple issues for them in terms of how advice was given and meeting regulatory requirements, but that they had managed to find a workaround.
Phil Bailey at Twenty7Tec reported that recent research they had carried out showed that whilst it was likely advice in the future would be a mixture of face to face, video and telephone interaction, a quarter of us said video conferencing would be their preferred means of communication going forward.
The group agreed that whilst nothing could replace the strength of a relationship which is built through face to face contact, given the convenience and efficiencies more virtual encounters presented, advisers were likely to land on a hybrid of communication channels as we emerge out of this pandemic. Craig Hall summarised that just because we can go back to the office doesn’t mean we should and the learnings from this experience should help the future transformation of the industry.
Greater need for advice and support
Whilst the method in which advice is likely to be given will vary, the need for it has only increased. All the panellists felt the industry was bouncing back, but had reservations about how long this would last and that as initiatives such as mortgage payment holidays and furlough schemes came to an end, brokers would be presented with much more complex financial situations and lenders would have to adapt to these circumstances.
Craig Hall called for greater clarity from lenders on what the longer term impact of taking a mortgage payment deferral would be and Jane Benjamin added that there would need to be a greater level of “understanding” from brokers when looking at income assessment.
Jeremy Duncombe, speaking on behalf of Accord, said he felt adding too many guidelines to the approval process would be damaging. He commented: “Our underwriters make common sense decisions. Our technology allows us to quickly process the simple applications, leaving our teams more time to understand the complex cases, speak to the broker and make the right decision for that customer.”
Above all, the panel agreed that brokers needed to use this opportunity to proactively contact clients and ensure they had the support they needed over the coming months.
Supporting a healthier work life balance
With most of us now working from home, the challenges of keeping our personal and professional live apart is proving difficult. Craig Hall cited that for those with young children managing to get the right work life balance has been trickier, but many found they were more productive as a result and overall less time spent commuting made for a much healthier approach.
Jane Benjamin commented that Sesame Bankhall Group had put in place a number of measures to support the health and wellbeing of not only its own team, but their families and the wider industry, by allowing all to access their resources. She also said she felt the lockdown would have much longer term implications on how people wanted to live and work in the future and felt there would be a shift to more rural living as people valued outdoor space more than being closer to their office, which they may only visit a few times a week.
Whilst none of us can say for certain what our lives will look like in a year, or even six months’ time, it’s safe to say that we would be foolish to go straight back to the way things were.
We cannot ignore the improvements made to our working lives and we should not forget that for the vast majority of clients, the impact of the pandemic on their employment, their families and their finances is likely to last an extremely long time. As an industry we need to be there to support them, adapting our services to reflect the changing needs and come out of this crisis stronger than ever.
To find out more and register for the next Power of 8 event please contact NEdwards@ybs.co.uk.
