The last few months have seen a number of new lenders enter the UK mortgage market, and many of those that we have helped on their journey are driven by a desire to build a new type of bank, able to do more with less. These organisations are characterised by small footprint operations, high levels of process efficiency and an agile mindset that allows them to move rapidly as circumstances and opportunities evolve.
Unlike traditional lenders who can be constrained by existing legacy systems and processes, this generation of new entrants have the freedom to create something agile and innovative. Speed to market is the key driving force, and they need to optimise the critical path to achieve the shortest possible route to delivery.
One way in which this has been successfully achieved is by outsourcing responsibility for IT services to third parties. The cloud computing revolution allows SMEs to provision high performance, resilient infrastructure for all aspects of the business with minimal capital outlay and without needing to embark on long and costly internal IT projects. Not just line of business applications but email, file storage, telephony, even desktop PC environments can be made available quickly and reliably through a remote virtualised infrastructure. However, it is important to select a service provider who understands the compliance framework in which lenders operate, and has the information security and audit controls in place to meet PRA and other regulatory needs.
Another factor in being able to launch quickly is having a mortgage processing system that provides a high degree of ‘out of the box’ functionality, with usable templates for lending policies, affordability rules, document templates, collections strategies and other parameters. This provides a strong foundation on which to build and deploy an effective and efficient solution in the least possible time.