What do Monzo and ClearScore’s acquisitions of Habito and Acre really mean for the mortgage market and advice? – Hollingworth

But as technology matures and new Financial Conduct Authority (FCA) rules permit a greater number of non-advised transactions, there are questions about whether brokers can maintain that dominance.

Viewed through this lens, it is easy to see Monzo’s acquisition of digital broker Habito as a cause for concern. For those who believe lenders are intent on using technology to wrestle market share away from intermediaries, this move looks like a land grab.

However, I see this acquisition as less of a threat and more as a confirmation of the enduring power of advice.

Advice firms hold value

As one of the most digitally advanced banks in the world, Monzo has the capital and talent to build almost any software solution it wants. If a purely tech-led direct, non-advised journey was the definitive future of lending, Monzo would have built it. Instead, it bought a brokerage.

That tells us something important about where real value still sits.

Recent developments reinforce this direction of travel. ClearScore’s acquisition of Acre is another signal moment for the industry. We are seeing capital-rich, consumer-facing brands acquiring regulated capability and distribution infrastructure, rather than building it organically. This is not simply consolidation for scale; it is consolidation for control of the customer journey.

In ClearScore’s case, the acquisition brings the technology rails that sit underneath advisers and lenders in-house, including workflow, compliance capability and deep data insight. Habito brought Monzo advice, distribution and optionality.

In both instances, the prize is not just brand recognition, but the acceleration that comes from embedding regulated advice and infrastructure within a broader consumer ecosystem.

Advice still prevails

Some may interpret this as a power shift upstream. As platforms, data and customer relationships consolidate, the strategic question becomes who owns the client and who owns the economics of advice?

That is a fair debate. But in fact, both transactions are acknowledgements that advice remains essential. For all but the most straightforward scenarios, borrowers still value guidance, reassurance and expertise. Mortgages are not a simple ‘click and buy’ purchase. They are one of the most complex financial commitments most people will ever enter.

Technology will undoubtedly take on more of the administrative work in the mortgage process. Digital tools can streamline fact finding, sourcing and document management, making advisers more efficient and clients better informed. But it will be a long time, if it ever happens, before artificial intelligence (AI) models can replicate the soft skills that are so vital to high-quality advice.

Navigating the emotional stress of a home purchase requires empathy and judgment.

A good broker ensures that a recommendation aligns with a client’s broader, long-term financial goals. These are qualities that are difficult to automate. Perhaps most importantly, borrowers want a human professional to take responsibility for their recommendation.

Consolidation can be positive if it enhances choice, efficiency and outcomes. The opportunity is not to replace brokers, but to enable them better. The risk would be if routes to market narrow, conflicts become embedded, or the adviser voice is marginalised.

We shouldn’t view Monzo’s acquisition, or ClearScore’s move, solely through the reductive lens of bank versus broker or robot versus human. I believe these deals point to a hybrid future where digital capability and human expertise work in tandem to produce better consumer outcomes.

If the most digitally sophisticated brands in financial services are choosing to acquire advice and infrastructure rather than bypass it, that is perhaps the clearest validation yet of the power and value of advice.