I’m a big believer in technology. It’s almost impossible to be a forward thinking, innovative and leading company without employing good technology systems. That’s why what I’m about to say may seem shocking – some technology is more of a hindrance than a help, particularly, it seems, when it comes to sourcing systems.
Now, before you chastise me or start reeling off the merits of sourcing systems for the modern broker, let me stop you there. I fully appreciate the value sourcing systems – particularly from industry leaders like Trigold and Mortgage Brain – offer our industry. My point is simply that if brokers become too reliant on these systems mistakes can be made – regardless of how good or advanced the systems are.
The second charge sector – which is, of course, now fully in line with the first charge market – is a case in point. There are some fantastic sourcing systems available within the seconds market – robust systems which, by and large, are much more detailed than those in the firsts market. However, despite the fact that these systems are able to factor in much more information, it is still the case the product variables for seconds are so great that these systems struggle to deliver an accurate outcome every time. Manual assessment of the cases is still needed in order to ensure the right product isn’t missed.
While the mainstream, first-charge market may be a little more straightforward and therefore, one would think, more suited to what most sourcing systems offer, we should still be aware of other elements. For example, the way products are added to the systems are key to the broker’s view when sourcing.
Intermediaries might struggle to find a product via a particular club or network (as payment route), if that club or network doesn’t also put the products on the sourcing system, as well as the lender, in some cases.
If brokers are not regularly updating their system and keeping up to speed with any new features or facilities, they may also risk missing products that could be the right solution for the borrower. Likewise, the broker needs to have a solid understanding of the system being used. Sometimes there are ‘white label’ versions of the systems available, for example, which may not show whole of market or exclusives of other clubs and networks.
As with most technology, sourcing systems are a useful addition to your business but they are just that – an addition. Remember the real knowledge and expertise lies with you. Don’t fall into the trap of relying too heavily on technology. There are a wide range of products and solutions on offer for today’s borrowers, so being overly reliant on technology could result in the broker market becoming a ‘computer says no’ industry or, worse still, an inaccurate one.
