This week’s Star Letter goes to Robert Gill for his comments on What the market would like to see in the FCA’s competition review – Marketwatch
Whole of market advised intermediation is the best outcome for consumers.
Current barriers to the optimal achievement of this across the market include;
- Unequal product distribution
- Lack of investment in existing sourcing technology and lack of responsibility from lenders for the accuracy of lending criteria in sourcing systems
- Lack of supply chain integration
- Lack of co-operation with intermediaries from certain lenders for existing customers
- Poor interpretation of MMR rules from lenders (mortgage prisoners) and brokers (compliance overkill)
- The emergence of robo-advisers who will look to build algorithms to improve the sourcing process, but will inevitably skew the market in favour of lenders that have the capability to participate. I have already spoken with a fintech start-up who plans to build a sourcing system that obtains decision in principles with only the lenders that offer a soft-footprint!