Ifthikar Mohamed (pictured), co-founder and director of Mortgagx, said the app-based client relationship management (CRM) programme was unlike any other in the sector. 

Mortgagx is a subsidiary of Mohamed’s firm WIS Mortgages, which he set up eight years ago after realising how much mortgage business he was referring out of his accountancy firm. 

WIS Mortgages was originally part of a mortgage network but, due to restrictions on what the firm was able to do, transitioned to a directly authorised model.

Mohamed was an accountant for 15 years and noticed more paperwork was needed to advise on mortgages than he was used to in accounting. The app was originally developed for WIS Mortgages to use in house and address this workload. 

“We developed our own system, which was mostly for us. Over the last few years, AI has been picking up, so we included a lot of AI into the app and today, it’s – in my words – something nobody else has,” he said. 

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Mohamed said the increased use of artificial intelligence (AI) was the direction the mortgage sector was already heading in, even though the industry was still “slow” and “people are still questioning if this is the right time [for AI]”. 

 

Resolving common mortgage broker issues 

Mortgagx aims to address the day-to-day problems of a broker, such as the time it takes to complete a fact-find, fraud detection, identify financial vulnerability and product sourcing. 

This includes the availability of mortgage criteria, which can be viewed via the app. 

“Quite often, brokers spend a lot of time [and] they go and speak to business development managers of banks. The problem you have is if there is anything complicated, you have to wait for a business development manager. If they are field-based, they might be in one meeting and running to another meeting, so they will only call you when they have free time. 

“That’s the frustration brokers have; they can’t find the right people to give them the answers they want,” Mohamed said. 

The criteria information included in Mortgagx is fed through from WIS Mortgages’ own criteria sourcing platform and this is regularly checked against other sources to ensure it is accurate. 

Mohamed said this would also resolve instances where a broker might take days to find a suitable product for a client because they are busy with other tasks, and end up losing them to another adviser who was able to work faster. 

Additionally, Mortgagx has an ‘intelligent fact-find’ function that enables clients to input their own information and the kind of mortgage they want. Mohamed said this cut down a process that sometimes took hours to around 10 minutes. 

A client then verifies their identity with a selfie video uploaded to the app and scanning their ID. 

The device being used by a client and their IP address is also run through a check, to make sure neither is associated with fraudulent activity. 

Further, Open Banking and information from credit rating agencies are used to populate a client’s statements and expenses, as well as check for any suspicious activity. 

Mohamed said: “With the fact-finds, the broker has to check and cross check this information, but all of this is taken away because the technology will do it.” 

Using this information, Mortgagx can “pre-emptively underwrite” applicants to show how much they might be able to borrow. 

This is currently done based on the information a client gives, but Mortgagx has also partnered with a lender to feed information into the app. The firm is hoping to bring more lenders on board in the future. 

 

Saving time for brokers and clients

In the app, there is an AI virtual assistant called AMI that can answer questions clients might have about the mortgage process without taking up the time of an adviser.

The virtual assistant has dialogue flow capabilities, meaning it can talk with clients, like Apple’s Alexa or Google Assistant.

Because the feature can be used at any time, clients can receive answers to queries out of hours. A transcript of the interaction is then produced, so the broker is aware and can follow up during working hours if needed.

The AMI virtual assistant has been programmed to always direct clients to an adviser when necessary, in accordance with Financial Conduct Authority (FCA) regulations.

Mortgagx also has video guides that explain certain parts of the mortgage process.

“The advantage is brokers don’t have to answer all the questions for the clients, because this is one thing that takes up time,” Mohamed added.

“This will save a whole heap of time for the customer and the mortgage broker. With that, we believe that the case quality should increase, and the rejection rate should start dropping.”

 

‘Pioneers’ in the mortgage sector 

The Mortgagx app has taken three years to develop, with input from the advisers at WIS Mortgages. The firm also worked with PMS Mortgage Club to ensure it complied with regulation. 

“We don’t think there’s anything close to this in the industry. The industry is slow-moving, but people will slowly start adapting to these technologies. 

“I think we will probably be the pioneers in trying to introduce these changes,” Mohamed said. 

A “large broker firm” and conveyancing company have already signed up to use the app, he added. 

He said Mortgagx could potentially be used by other stakeholders in the property sector such as estate agents, who could utilise it as a screening tool for clients. This could minimise clients having to duplicate the information they send to different companies during a transaction. 

Four test cases have been conducted with conveyancing firms to see how this can be used across the sector. 

When asked why Mohamed decided to create this in app form, he said people use their phones for many tasks nowadays. 

“We thought an app would be the better solution. Because otherwise, people have to log onto a computer, but also if you’re using an app, the journey can be much faster.”

He also said a mobile phone would be easier to use when a QR code is needed to verify a client. 

Brokers and advice firms can pay to use Mortgagx and white label it to be branded according to their company identity. It has already been integrated into the Salesforce CRM, which WIS Mortgages uses, but can be plugged into other platforms if needed and at a cost.

The cost will vary depending on how many features a broker wants to use and can be lowered if it is used by multiple advisers within a larger firm.