At the event at the Gherkin yesterday, introduced by Stephen Smith, Twenty7Tec CEO James Tucker told the audience it had either signed contracts or confirmed its intent to sign a contract for Mortgage Apply at varying levels of integration with 15 of the top 30 UK lenders.
HSBC and Nationwide are the two top six lenders not listed at this stage. (see below)
The event was simultaneously a ‘call to arms’ for the mortgage industry to collaborate and innovate now before out-of-sector technology providers or aggregators move in, said participants.
Connells will roll out Mortgage Source and application programming interface (API) enabled software Mortgage Apply, to its advisers by the end of 2019 after integration into its client relationship management tool.
Three other distributors, including Sesame Bankhall Group will also roll the two Twenty7Tec systems out to its advisers. PMS, however, stated that Mortgage Brain remains its ‘preferred system’ but will offer the alternative software to users for £10 a month.
Meanwhile, St. James Place has agreed a five-year deal on both Twenty7Tec systems to over 4,000 advisers with integration into its core system. LSL has agreed a similar deal for its 2,000 advisers, with rollout due to complete by 2019-end.
Twenty7Tec also fleshed out its plans to roll out software partnerships with a series of mortgage lenders this year, with some unable to commit to a timeline.
The lenders have agreed different levels of service packages, with some opting for software that offers decision in principle, full mortgage application and case tracking and others will offer the full package, including document transfer, status updates, third party integrations and a secure chat functionality between broker and lender.
Twenty7Tec said ideally every lender will eventually move to this model once all their APIs become available.
Timelines for system adoption supplied by Twenty7Tec:
1. Lloyds Banking Group – Q3 Target – decision in principle (DiP), full mortgage application (FMA)
2. Barclays – Q4 target – All functionality
3. Santander – Q4 target – DiP
4. Natwest – Q2/3 target – DiP, FMA, case tracking
5. TSB – Q4 target – All functionality
6. Yorkshire Building Society – Q4 target – All functionality
7. Skipton – Q4 target – All functionality
8. Precise – Q2/3 target – All functionality
9. Kensington – Q2/3 Target – All functionality
10. Foundation Home Loans – Q3/4 – All functionality
Platform, Aldermore, West Brom Building Society, Together and The Mortgage Lender have yet to announce timelines but intend to aim for all functionality.
A panel of mortgage firms and networks, including Mortgage Advice Bureau, LSL, Sesame Bankhall and Connells, laid out their views on the strategic importance of technology and innovation in the market.
Ben Thompson, CEO at MAB raised the spectre of the travel industry and said while he understood why some may not want to make technology moves first, sitting it out entirely is not an option. He added that the relationships mortgage brokers and lenders have now must be strengthened, adding it’s so important ‘we get that right.’
Adrian Scott, group mortgage services director at Connells Group, said there were three reasons his firm had chosen Twenty7Tec’s software.
“The relationships and the people at Twenty7Tec have been a breath of fresh air for us with their ‘can do’ attitude across their business,” said Scott. He continued that the quality of the technology and ‘seamless integration’ were also key alongside the concept of the Mortgage Apply software.
Sesame Bankhall COO Martin Schultheiss observed that time is the single biggest asset a company has, so cutting out re-keying will allow advisers more advice time and also allow multiple sources in one hit.
“As lenders face down pricing pressures and risk, ultimately, we as advisers need to also stay relevant as we face the aggregators,” he added.
LSL group financial services director Jon Round said: “It might be worth just taking a little bit of a step back here, as we sit at the top of the Gherkin admiring the view and discussing what a brilliant step forward for the industry this is. Ultimately, this is really just about establishing some of the basics that should be in place.”
Round added that the automated flow of data between brokers and lenders is instead supported by an army of administrators re-keying information. “It’s really quite a crazy place to start from,” he said.