Santander for Intermediaries managing director Miguel Sard (pictured) said: “I’m a little worried when we identify innovation with risk appetite. We need to avoid the mistakes of the past.
“I believe innovation is important but a big part of it is how we treat customers and technology is key. We need to be able to adapt to a new world.”
Stephen Smith, director mortgage club and housing at Legal & General, agreed innovation shouldn’t be confused with a move up the risk curve.
“There must be many ways in which lenders and intermediaries can serve their customers better simply in the way business is done and in the design, and particularly the flexibility of mortgage products. So innovation, and indeed specialism does not need to mean more risk, just better understanding, better products and better service.”
Financial services director of Countrywide Nigel Stockton, agreed new technology will resculpt the mortgage market landscape.
He said: “Technological change is coming. Mortgages are sold 90% face-to-face and 10% via the web right now. That’s going to change and you’re foolish if you don’t think about that. I ask, what are Google going to do in this space as they’ve got more mortgage leads than any other provider?”
Stockton continued that this remains the greatest challenge, but said the industry would adapt.
Lenders are striving to make it as easy as possible for consumers to change product from end-to-end online.
“Lenders are our friends for now,” said Stockton, but he cautioned that technology was likely to reframe the lender-broker relationship over time.
