Brokers urged to address the “threat” of digital mortgages

The customer base of traditional mortgage brokers can “decrease” if not evolved to compete with digital entrants.

Jonathon Stinton, head of mediation for the Coventry Building Society, said FTAdviser’s brokers are catching viewers if digital play is done correctly.

“Traditional brokers, brokers working on referrals without websites or social media-unless they evolve, their customer base can decline over time,” Stington said.

If they don’t understand this correctly, Stinton said digital brokers “may keep customers away from traditional brokers.”

UK digital brokerage firms have recently made significant investments. Habito raised £ 35m in August 2020. In July Mojo Mortgage When Trussle Purchased by a US-backed company for their technology.

Then last week based in London Charles Cameron & Associates Developed a completely remote advice service during a pandemic-was acquired by Socium Group.

“Brokers need to take multiple approaches to acquiring and retaining clients,” says Stington.

“‘How do you want me to get involved with you?’ Must be the question the broker is asking. Traditional companies don’t rely on’always working this way’, but the whole thing. Must be holistic. Large companies will begin to penetrate this sector. “

Stinton was aware of the “technical threat”, but others in the industry were less interested in competition.

“There is money there” Martin Stewart said, Director of the franchise advice network The Money Group.

“Investors agree with the dream of digitizing mortgages, but much of this money has been burned. Spending millions of dollars on children wearing a Converse pool in the kitchen There is none. […] You can manage technical threats. “

Jeremy Duncombe, director of mortgages at the Yorkshire Building Society, called technology an “enabler” of good advice.

All UK digital mortgage brokers employ their own advisors that use technology to digitize part of the application process.This leads to some A player who admits a mistake in the advice given to the borrower..

“Technology enables good advice,” says Duncombe. “It has brought the market where it needs to be reached.

“Brokers need to adopt technology. Companies are still hiring advisors because it is an enabler to start a conversation of advice.

“Ultimately everything is advised. Therefore, the word” robo-advisor “is a misnomer. It is either run-only or advised. You can’t have a half-baked house. “

“It’s not as accelerating as people thought,” Stington said.

“It has that place,” he added. “But do you think it would keep traditional mortgage brokers out of the way? I’m a little uncertain, but you can learn from them about certain processes and efficiencies.”

In a recent survey by Yorkshire BS, 78% of the 2,000 first-time buyers surveyed said they would like to use a broker to help arrange their first mortgage.

Brokers urged to address the “threat” of digital mortgages

Source link Brokers urged to address the “threat” of digital mortgages

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