Today, technology is one of the major forces in our lives. Whether we swipe our credit card at the supermarket, pay our gas bill by direct debit or pause live television, it makes our lives faster, better and more efficient.
The mortgage industry is no different.
Since Mortgage Brain started almost 25 years ago, the influence of technology on how people research, buy and sell mortgages has increased beyond anyone’s expectation. Today, for example, more than 80% of mortgage transactions go straight through to lenders’ back office systems without any human intervention.
Equally, technology has increased brokers’ ability to keep up-to-date with ever-increasing legal requirements, handle greater numbers of products faster and keep in touch with existing and prospective clients.
And technology’s influence is only going to increase.
Recent surveys suggest that among other things: the number of people who said they had applied for their current mortgage online has doubled in the last two years to almost 20%; 45% of people expect to apply for and buy their next mortgage online; 84% of those looking for a mortgage in the next 12 months intend to use the internet to find information; and the number of online consumers who expect to use broker or IFA sites was up from 18% in 2007 to 43% in 2009.
All the above tends to invite three types of responses from brokers.
Some will embrace change, build websites and install the latest technology to make themselves more customer and regulatory responsive. Others will steadfastly ignore any developments and do business as they have always done. A third group may see technology as an active threat to their company and do everything they can to thwart it.
However, the very best, most successful brokers are the ones who meld the latest technology with traditional broker strengths of customer care, experience, excellent service and extensive industry knowledge.
The ones who know exactly what their customers’ needs are and use technology to find the most suitable product in minutes. The ones who never get into trouble with the FSA and can supply any requested information at the touch of a button. And the ones who still remember to ask Mrs. Jones how her hip operation went.
These successful brokers all have one thing in common. They have seen the potential of technology, moulded it to fit their business and haven’t lost sight of the fact that brokers score because they provide a human face and help in the mortgage buying process.
There is a slight danger, of course, that brokers who rely solely on technology become automatons themselves. Similarly, brokers that don’t use it enough fail to offer the best service possible to their clients.
The perfect marriage between broker and technology is one where the interpersonal, sales and service skills of the broker are matched and complemented by leading edge technology. Together, they can be a pretty irresistible proposition.
Technology neither can nor should replace the intuition and understanding of the broker for the needs of their client. Equally, a broker with the world’s best bedside manner who spends hours painstakingly looking through reams of paperwork to find a suitable mortgage will soon find themselves without any clients to charm.
For those of you who still see technology as foe rather than friend, here are just some of the ways in which electronic wizardry has improved and can continue to improve the lives of brokers:
The latest technology can be integrated within a broker’s website and allows customers and prospective clients to quickly and easily source, compare and enquire about mortgages that best suit their needs. Not only does this lead to more business, but it helps to generate leads and is a very useful promotional tool.
The best systems cover the whole of this ever changing market, are easy to use and incredibly accurate. They offer consumers certainty and confidence. They also have the ability to produce customer specific best buy tables and give consumers the option to request help from a mortgage professional at any time.
All this happens in minutes, allowing more transactions to be completed and more profit to be generated.
Electronic systems also act within the parameters of the increasingly tight FSA regulations, reducing the possibility of human error. Whether it’s advice given by a financial adviser, answers to questions raised by customers, or a complete sale, technology can help to keep all the information safe and sound for when the FSA pops round for coffee.
The fact is that more people are using more technology more often to research and buy mortgage products. Brokers need to have access to all the latest tools to enable them to compete in an ever more competitive market and continue to meet clients’ needs now and in the future.
Equally, the technology is designed to aid and assist brokers in their work. It isn’t designed to usurp them. A broker’s knowledge, understanding and personal touch, quite simply, is invaluable.
As mortgages become ever more complex, consumers will increasingly need and value the services of a broker. Brokers are the experts in their field and clients will always want the professionalism and reassurance they can offer.
Technology should be embraced. It can never replace a broker and it’s certainly not designed to take customers away from them. Rather it supports them, makes things easier and aids customer service.
It is, and always will be, a broker’s friend.
Mark Lofthouse is chief executive of Mortgage Brain
