Expert & facilitator: Phil Rance, Consultant, Positive Momentum
Headlines:
- There is frustration with the complexity and perceived overreach of regulations, which often lead to excessive compliance burdens, especially for smaller firms and a need for clearer guidance and better support from regulators
- The fragmented nature of the industry, with multiple lenders, brokers, and networks operating independently, is seen as a significant barrier to progress and innovation
- The potential of digital transformation and technology to address industry challenges highlights the need for interoperability, data sharing, and the integration of various components of the home-buying process, such as conveyancing, to improve efficiency and speed
- Concerns about frequent rate changes by lenders, which can disrupt the mortgage application process and negatively impact customers
- The need to prioritize customer experience and address the industry's reputation for complexity and inefficiency. Suggestions include leveraging technology, streamlining processes, and improving transparency and communication with customer
- The need for collective action, collaboration, and a customer-centric approach to drive positive change in the mortgage industry
Discussion points:
Regulatory challenges and compliance burdens
Delegates expressed frustration with the complexity of regulations and the perceived overreach of the regulator (FCA), highlighting the excessive compliance burdens, particularly for smaller firms, which can consume a significant portion of their time and resources. The need for clearer guidance, better support, and more direct communication from the regulator was emphasized.
Delegates also questioned whether regulations keep pace with the realities of the market, such as affordability and house prices.
Industry fragmentation and lack of collaboration
The fragmented nature of the mortgage industry, with multiple lenders, brokers, and networks operating independently, is a significant barrier to progress and innovation.
The challenges of getting lenders and brokers to align and agree on standards, data sharing, and common platforms and the lack of a single industry hub or system is seen as a contributing factor to inefficiencies and delays in the mortgage process.
Digital transformation and technology adoption
The potential of digital transformation and technology adoption to address industry challenges and the need for interoperability, data sharing, and the integration of various components of the home-buying process, such as conveyancing. The adoption of common data standards, reusable data, and AI-powered compliance checking were highlighted as potential solutions. However, delegates also acknowledged the challenges posed by the digital maturity of different industry players and the need for collaboration to drive transformation.
Lender practices and broker relationships
Concerns were raised about frequent rate changes by lenders, which can disrupt the mortgage application process and negatively impact customers. The need for lenders to provide more stability and predictability in their pricing and product offerings and the role of business development managers (BDMs) as well as the importance of fostering strong relationships between lenders and brokers were discussed.
Suggestions included splitting the BDM role into business support and business development functions, and providing better training and support to brokers.
Customer experience and industry reputation
Delegates emphasized the need to prioritize customer experience and address the industry's reputation for complexity and inefficiency. They also discussed the importance of leveraging technology, streamlining processes, and improving transparency and communication with customers.
Suggestions included providing better access to information, such as credit reports, and exploring innovative approaches like integrating general insurance (GI) earlier in the mortgage process to improve lead generation and customer retention.
Key takeaways:
- Collaborate with industry stakeholders, including lenders, brokers, networks, and technology providers, to develop and adopt common data standards and interoperable systems
- Engage with regulators to seek clearer guidance, better support, and more direct communication channels, particularly for smaller firms
- Explore the implementation of AI-powered compliance checking and reusable data solutions to streamline processes and reduce compliance burdens
- Encourage lenders to provide more stability and predictability in their pricing and product offerings, minimizing frequent rate changes that disrupt the mortgage application process
- Evaluate the role and responsibilities of business development managers (BDMs) and consider splitting the role into business support and business development functions to better serve brokers
- Prioritize customer experience by improving transparency, communication, and access to information throughout the mortgage process
- Investigate innovative approaches, such as integrating general insurance (GI) earlier in the mortgage process, to improve lead generation and customer retention
- Foster collaboration between lenders, brokers, and technology providers to integrate various components of the home-buying process, including conveyancing, to improve efficiency and speed
