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MAB eyes digital advice as market share, adviser numbers and profits rise

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  • 25/09/2018
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MAB eyes digital advice as market share, adviser numbers and profits rise
Mortgage Advice Bureau (MAB) has increased its share of gross mortgage lending to 4.7% during the first six months of the year and seen adviser numbers, revenue and profits grow.

 

The nationwide advice firm hinted that it may seek to develop a digital advice process.

“We remain advocates of the importance of customers receiving full advice and this will continue to be our primary and most important focus,” it said.

“However, we will explore how customers can perhaps get the mortgage they want through more expedient means, as they increasingly seek to research in a more remote and digital way.”

MAB also highlighted the opportunity that later-life lending will offer with the growing market segment being “highly intermediated”.

And it is exploring the potential of expanding its involvement beyond the mortgage transaction “with the ultimate aim of using technology to control the whole home moving process for a customer”.

At present MAB is involved in mortgages, protection, household insurance, surveys and conveyancing.

 

Gross lending up

Overall MAB arranged £6.5bn of gross new mortgage lending between January and June – a 25% increase on the £5.2bn arranged in the first half of 2017.

Of this, MAB completed £600m worth of product transfer lending in the period, up from £200m in H1 2017, indicating the potential the firm sees in product switching.

“MAB estimates that the intermediary market share of product transfers is already at c. 25-30%,” the firm said.

“This development presents incremental customer interaction and new opportunities for MAB advisers especially as MAB has traditionally been predominantly a house purchase focused model. “We expect activity in this area to remain strong, and MAB is well positioned to capitalise on this development and grow its market share,” it added.

 

Adviser numbers rising

Revenue was up 17% to £57.9m from £49.6m in the same period last year while profit before tax was up 11% to £7.0m.

MAB has also seen individual adviser numbers grow 6% over the last six months to reach 1,138 at June 30, and it has since added a further 19.

It expects this trend to continue through organic growth and new appointed representative joiners.

The firm noted that there had yet to be any real shift in technology solutions within the mortgage market but that it was expecting this to occur in the medium term.

It is, however, “progressing well” with its new technology platform.

 

Product transfer focus

Mortgage Advice Bureau CEO Peter Brodnicki said he was very pleased with the results despite market headwinds and that it was a sign of clear outperformance against the housing market.

“Importantly, we continue to grow MAB’s market share, with our primary focus being to support our business partners and ensure they deliver the best advice to as many customers as possible,” he said.

He added: “UK Finance recently provided its first estimate of the value of product transfers giving a figure of £53.7bn for the first quarter of 2018.

“Along with the reduction in house purchase transactions, the increase in product transfers has resulted in a changing sales mix in the first half and presents a considerable opportunity for MAB to increase its market share in product transfers alongside a greater focus on protection sales for non-purchase business.”

Brodnicki also noted that technology would be a key source of progress for the business “through improvements in efficiency, productivity, lead generation, product offering and customer experience”.

 

 

 

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