Buyer demand was suppressed following three very strong years during the pandemic, with recent data from Houseful revealing a 23 per cent drop in housing sales year-on-year. With some of these challenges likely to continue in 2024, lenders and brokers should take advantage of the quieter period and invest in strengthening their offering. The rapid development of artificial intelligence (AI) technologies offers unique opportunities for the mortgage industry to free up time for advisers and improve their engagement with key markets.
The power of AI
AI technologies can be used to automate repetitive tasks and streamline operations, creating more time for advisers to focus on providing quality service. The mortgage application process, for instance, can be accelerated using automated credit commitment checks and AI-driven suggestions for applications.
Using AI to improve efficiency can free up time for brokers and lenders to focus on offering valuable advice to their customers and for administrators to concentrate on directly supporting advisers. This can help firms to improve the quality of the service they provide, create more positive customer experiences, and ultimately drive revenues. The application of technological solutions like these can be critical when many customers are under financial strain, making it more important for advisers to focus on breaking down complexity and actively supporting their clients.
Helping the customer
AI tools can also help brokers and lenders to streamline and improve their approach to customer engagement. Brokers may use generative AI tools to quickly create marketing emails to re-engage existing customers, such as by creating an initial email template which can then be used as a foundation for producing a more tailored communication.
This can help brokers to engage with customers more efficiently and consistently, allowing them to maintain contact and ensure that customers receive the information that they need when they need it. Regular communications with customers can be invaluable in the current environment, with economic and market uncertainty as well as competition from other providers elevating the importance of staying close to customers.
Using AI technologies to support with generating customer communications can be particularly useful for helping brokers and lenders to improve their engagement with key markets such as first-time-buyers (FTBs). According to research from Houseful, 40% of people hoping to buy a home in the next two years are FTBs, making this group a key audience for brokers and lenders.
Generative AI tools can help firms to efficiently generate content for social media platforms that can be effective for connecting with the typically younger FTB market. When underpinned by creative presentation, a strong understanding of the audience, and a clear schedule for posting content, this can help firms to be front-of-mind when FTBs take their first steps onto the property ladder.
Laying tech foundations
Entering 2024, the mortgage industry will continue to operate in a challenging environment. While activity is likely to be more subdued than in recent years, interest in buying homes in the near future is unlikely to fade. Recent data from Houseful, for example, has revealed that 16 per cent of consumers in the UK want to buy or move home in the next two years. With this pent-up demand set to be realised as the market regains its strength, the coming months represent an opportune time for the industry to lay the technological foundations to ensure that it is ready to respond. While there are certainly problems to be overcome, it is important that businesses are not too sceptical of AI and make use of the technology where appropriate to drive efficiencies and improve their offering.
