Brokers have been told that APIs could transform this market – yet the actual capabilities of some APIs already in use have often seemed underwhelming.
This mismatch between hype and reality has arguably been due to the fact that those were only one-way APIs. A two-way API does much more than move information from A to B: it is a tool that enables swift, seamless, two-way communication between separate IT systems.
Think of it like an invisible travel adapter, working behind the scenes to connect the computer systems of lenders to those of brokers.
This can help brokers deliver a better, faster service to customers. It enables them to spend less time on administration, focusing instead on building stronger relationships with their customers, or pursuing new leads.
One example is a platform which uses an API to connect brokers’ systems to those of multiple lenders. If you are a broker, this type of API provides a direct link into lenders’ decision-making systems, with data delivered to each lender in a format that suits them.
These two-way links allow lenders to make eligibility decisions quickly, then share the decision with you and your customer. In most cases, the customer will get a result – not just an estimate of what a lender could lend, but a confirmation of eligibility – within 60 seconds.
This saves customers, brokers and lenders a lot of time and effort.
Brokers can gather all the information needed for an application from the customer once, then send it to all the lenders using the API. This way, brokers no longer need to rekey information separately for each lender – a process that might otherwise take up to an hour for each and carry a much greater risk of manual error.
Giving clear information
Two-way APIs can also give customers more certainty about their eligibility for different mortgage products and a decision in principle (DiP), freeing them from what can often be an extra source of stress during the property buying process.
APIs enable automated tracking, providing brokers with live updates on a case direct into their own systems.
These API systems can also support brokers in providing remortgage customers with clear information about their eligibility for products, even if they have unusual requirements or a poor credit rating.
In the future, brokers will be able to use two-way APIs to streamline other points of the mortgage buying process, such as identity and anti-money laundering checks.
APIs help brokers to do more business and give customers clarity and peace of mind. It’s therefore a technology that does not really need any hype – it just does what it’s supposed to do and does it well.