While an increasing focus on the development and usage of technology has helped parts of the mortgage market, the process of researching for a mortgage remains too manual and offline writes Pradeep Raman, Director of Digital Solutions.
This article was published in Mortgage Finance Gazette magazine, December 2019 edition.
Designed to improve processes and service levels within the mortgage industry, Burrow (part of the DPR Group) has designed an enhanced platform providing pre-application qualification functionality to mortgage lenders.
This new platform will deliver one of the most innovative customer onboarding, eligibility and affordability verification tools in the UK. Software will allow users in the ‘research phase’ to fully understand specific mortgage options with a chosen lender, before starting an application, providing all requisite documentation and managing the process through to completion online.
Born of a view that clients had inadequate tools available to them to accurately establish the likelihood of being able to obtain a mortgage, this technology-led digital approach will enhance the information gathering area of the advice process, improving timeframes and speeding up applications. Currently, disparate affordability calculators, basic DIPs and unqualified rate tables do not give consumers a joined-up view of whether they qualify for a mortgage, let alone the maximum loan amount and most competitive rate. Falling short of user expectation on several levels, this creates numerous missed opportunities for lenders and increases unqualified enquiry numbers.
By filtering out unsuitable borrowers earlier in the advice process it improves conversion rates and creates better educated and engaged customers. It will equip mortgage lenders with a toolkit to serve customers better and more quickly by taking away automatable tasks leaving them to do what professional advisers do best, reducing lender’s costs at the same time.
The introduction of this technology will also increase conversion rates, therefore improving the quality and reducing the cost of customer acquisition. An ongoing application process which combines the human interaction with a lender alongside customer relationship management tools, automated product recommendation, form filling capabilities and eligibility and affordability calculators, will likely become the industry-wide system of choice. Quick and easy to adopt, this customised service will benefit from ongoing optimisation producing a low cost and regulatory compliant solution.
By blending digital and traditional methods, we believe that this is the type of technology that lenders should embrace. Saving time and effort for both the lender and borrower, implementation of this digitalisation will improve customer onboarding, reduce acquisition costs and increase adviser capacity and productivity. By choosing the right technology partner, lenders can complete a process of digital transformation that will see them well set for the future.