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The lasting impact of artificial intelligence will be clear in 2018 – Calder

by: Craig Calder, director of intermediaries at Barclays Mortgages
  • 09/07/2018
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The lasting impact of artificial intelligence will be clear in 2018 – Calder
The influence and advances in technology are everywhere in the mortgage market including system integrations, back office support tools and much more.


Lenders, existing tech companies and digital disruptor entrants are all working hard to update systems and introduce solutions with the aim of making processes simpler and more connected across a range of platforms and devices.

The move to mobile continues, with mobile-centric business models now at the core of many sectors within financial services.

And with the Payments Service Directive 2 (PSD2) in its implementation phase this is something which will impact banks and corporates alike.

Blockchain, bitcoin and shared systems have captured many column inches over the past six to 12 months in particular, and these are trends which seem likely to continue.

So let’s take a very brief look at the top three trends to watch out for in H2 2018 and how they could affect your business.


Banking regulations

This year has long been marked as a turning point for financial regulation.

Alongside General Data Protection Regulation (GDPR) and Markets in Financial Instruments Directive (MiFID II), the requirements for central clearing and PSD2 will force significant changes to the banking environment, with the innovators and disrupters emerging as the winners.

At the moment it’s difficult to say exactly how regulatory change will impact the intermediary market, but these are certainly areas worth keeping a close eye on over the coming months.


Artificial Intelligence (AI)

The immediate-term potential for AI may have been overhyped in 2017, but the real and lasting impact will only be fully understood throughout the course of 2018.

This is especially apparent with banks and FinTech companies expected to work alongside regulators to make AI-focused regulation more transparent, removing grey areas and thus speeding up adoption and innovation.

Robotic Process Automation (RPA), which uses software bots to mimic human activity, has the potential to free-up employees’ time, allowing them to focus on value-added work – ultimately transforming the way the financial services sector operates.

The recent Financial Conduct Authority (FCA) review around robo-advice shows how closely the regulator is monitoring this area.

Its salient advice around firms needing to ensure their automated offerings are as comprehensive as their offline ones should be heeded across all forms of the advice process.



The use of blockchain technologies and digital identity management is widely expected to become integrated across many business models to leverage the cost savings and transparency that a distributed ledger can provide.

But what does this actually mean?

Blockchain is not a simple concept to describe within one article never mind one sentence, but it does have the potential to turn the mortgage process into a slick, secure and fast end-to-end solution connecting all elements of the home loan chain.

However, it is worth noting that with the technicalities involved it may take at least a decade before it becomes mainstream, so watch this space.


Good, bad or great service

The importance of tech solutions for intermediary firms will naturally differ due to the scale and scope of each operation.

Although successful integration on any level can make the difference between good, bad and great service, as well as improving efficiency throughout back office systems.

And with new advances coming out all the time it makes sense to keep track of the tech trends which could impact your business now, or in the future.


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