Digital change is significantly impacting on the way consumers see the mortgage market and what they expect the process of buying and owning a home to be like, new research revealed.
Technology has the potential to change the country’s mortgage market through making lenders more flexible and enhancing competitiveness across the sector, a report by the Council for Mortgage Lenders (CML) stated.
Rate of successful UK mortgage application through intermediaries up
The study showed that 84% of respondents believe technology could improve customer experience and relationships whilst 76% believe it could improve their own operational capabilities and 68% hope it could put customers in better control.
The mortgage market is changing rapidly at the moment, due to apps in which customers can manage and arrange their mortgages to digital property searches and the potential of technology to deliver automated decision making.
However, the research also points out that this evolvement comes with issues as it sits in a market whose customers value advice for complex products and being able to ask questions directly.
Lenders have noticed the shift and are investing heavily in order to give customers the best technological experience possible. Whilst this is a step in the right direction, the CML research also points out that it’s crucial for lenders to react with agility to any queries coming up.
“This report highlights the enormous potential of technology in the mortgage market, a huge, process driven industry with more than 11 million customers. It is already enhancing what lenders are able to offer their customers, as well as improving the efficiency of work behind the scenes,” said Paul Smee, CML director general.
“The pace of change will not slow, and firms will need to ensure that their plans for developing technology are underpinned by the clearest possible understanding of all the implications of digital change.”
