From live access to account data through banking apps, faster payments, and faster processing, it’s clear these developments have the power to transform our industry and the customer service we can offer clients.
For example, banks are now able to use more advanced data analytics to understand customer needs, to better meet their expectations.
In the mortgage market, we have moved on from the one minute mortgage to the potential for automation and AI to provide advice to customers while generating useful data.
Buying a home is the largest purchase of a customer’s life and they should have the time to make sure they have made the right decision, with technology working with them to ensure it is as stress free as possible.
There are a variety of tools we can use to mitigate potential technology risks, not least sharing best practice around security threats and the latest developments along with deploying penetration testing.
The FCA has developed a sandbox which allows businesses to deploy new technologies and test them in a safe environment, working with the regulator before they are deployed.
We should focus on areas which add real value to customers, making the process less stressful while at the same time putting additional checks to identify vulnerable customers.
Protecting the vulnerable
Automation and AI systems have a built-in safeguard themselves – for example, if a system has a concern around a customer it will hand the case off to a human adviser.
Clearly there are many advantages to automation: technology doesn’t get tired and – systems permitting – provides 24/7 access to the market, as well as consistent decision making.
The ability to scan and attach documents, auto verify their authenticity, confirm a customer’s identity and cross-check with external data sources, are all examples of how technology has helped make customer lives easier, reduce risk to the customer and help lower costs for lenders.
However, while technological advances can make life easier there are always risks which need to be mitigated and managed.
With more data available online, and processes becoming faster and increasingly streamlined, the industry needs to ensure its cyber security and data checks keep pace.
The next great advance in the realms of automation and AI may not have even been thought up yet.
It is essential that lenders invest in new advancements in technology, and commit to developing solutions which can adapt to take advantage of next generation technologies quickly and flexibly.
This will be discussed in depth at Capita’s roundtable next week where industry leaders will debate and discuss how the industry can best achieve simple, innovative and responsible lender and broker technology – a full summary will be available in July.