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Almost a fifth of borrowers say lenders’ technology is falling short, says Finova
Some 19% of homeowners feel that the technological features offered by lenders are falling short of expectations, according to research by Finova.
Finova, a cloud-based mortgage and savings software provider, surveyed over 500 borrowers and 500 brokers for its report Transforming home ownership in the digital age.
The report aims to investigate how time-consuming the path to homeownership is in the UK, and the “critical gaps between borrower expectations and the current state of mortgage technology.” It identifies opportunities for mortgage lenders to reassess and enhance their digital solutions to keep pace with the evolving demands of consumers.
Some 19% of homeowners don’t find any technological features offered by lenders to be beneficial, and this is despite the recent influx of new and innovative digital tools.
According to the report, 42% of respondents still believe speaking on the phone is the most effective way of addressing mortgage queries.
Only 13% of borrower respondents enjoy using chatbots, and just 12% find virtual consultations with mortgage advisers productive.
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Of the technological features that were most popular, 30% of survey respondents find the online application process to be the most useful, and almost a quarter (23%) value digital document signing.
Finova’s research found that female homeowners and younger demographics are particularly drawn to these features, probably due to their efficiency and convenience.
‘Significant gaps in the market’
Chris Little, chief revenue officer at Finova, said: “Our research highlights some significant gaps in the market, confirming that lenders’ tech still has some way to go before it completely aligns with borrowers’ expectations. While the sector has upped the ante in recent years, and is increasingly adopting more digital solutions, there is still room for improvement.
“A considerable portion of borrowers still value personal interactions, and there’s no reason why they have to forgo the human element to reap the efficiency benefits that come with digital solutions. The popularity of tools like online applications and digital document signing demonstrates that there is a real appetite for technology when done right, but we need to take stock of how preferences vary across the board if we want to implement tech that is here to stay.”