" Technology continues to be central to lenders’ efforts to speed up execution and improve service for intermediaries and consumers"
By enabling third party services, such as online income verification and electronic valuations which link directly into lenders’ mortgage platforms, IRESS says open APIs will reduce re-keying of information and reliance on paper documentation.
Its research shows that 55% of lenders are looking at APIs to increase efficiency and cut costs from the mortgage sales process.
62% of lenders are investing in mortgage hub technology and half are implementing or actively reviewing open banking functionality within the mortgage sales process including assessing affordability and verifying income electronically.
The growth in smartphone usage has resulted in lenders reviewing mobile services to mortgage applicants and instant messaging for both consumers and intermediaries. Lenders are also looking at introducing voice activated services following the rise in popularity of devices such as Amazon Echo and Google Home.
Henry Woodcock, principal mortgage consultant at IRESS, commented: “Our 2018 Mortgage Efficiency Survey finds that technology continues to be central to lenders’ efforts to speed up execution and improve service for intermediaries and consumers. Emerging technologies like mortgage hub connectivity, open banking and APIs are driving the market away from stand-alone systems to a more connected mortgage ecosystem, plugging in different systems to create a paper-free straight through process. Greater integration with intermediary software, sourcing services and other third-parties will increase efficiency, reduce risk, remove friction and provide better outcomes for consumers.
“With the FCA calling for more innovation and competition, we look forward to seeing what impact new specialist entrants and challengers have on the market in 2019 and beyond.”