Worried a robot might be waiting on the sidelines to replace you? It’s not an unfounded fear as while automation and artificial intelligence (AI) become the norm, machines are beginning to replace humans in several industries, from self-service food orders at restaurants to baggage check-in at airports. In fact, in the UK it’s predicted that 250,000 public sector workers could lose their jobs to robots in the next 15 years, according to The Guardian.
This trend is now spreading to the property and legal markets; last year saw start-up, Habito launch the world’s first AI Digital Mortgage Advisor in place of a human broker. The AI technology, which is presented like a chat-bot, works by using information about the customer such as employment, salary and life plans, and matches this with real-time mortgage market data from hundreds of providers using Habito’s algorithm to create a variety of personalised mortgage plans.
Trussle has also joined forces with Zoopla to offer a similar service, dubbing itself “The UK’s first online mortgage broker” as they search offers from 90 lenders to find customers “the best” mortgage deal.
It’s no secret that the mortgage and conveyancing industry is slow moving and in need of innovation and an upgrade. We’ve already seen the first stages of the property process shifting to online as property browsing has moved from newspapers to websites and property portals, and to great success: more than 98% of buyers now start their search online.
Now developments in FinTech are enabling the first stages of the mortgage process to take place online, but rather than worrying about an AI bot stealing your job, instead consider how it could enhance your work, and your business.
With the help of AI bots, the mortgage application process can (to a certain extent) be automated and digitised. Mortgage brokers are mortgage experts, so they should be using their knowledge where it counts: talking to the client. A bot and digitised process can reduce admin, enable a wider selection of mortgage products and lenders, and result in a faster, more personalised service.
This shows there is still a role for mortgage brokers. There’s only so much that can be automated and done by a bot, and ultimately, a combination of people and technology will result in a better customer experience. Trussle is reassuring customers by providing a ten minute consultation with a broker before the final purchase from the lender, giving the opportunity for reassurance and for the consumer to ask any questions they may have. The broker role is not redundant, just evolving.
But do consumers really trust one of the most important financial decisions of their life to a computer programme? As a mortgage broker, you offer an invaluable service with impartial and expert advice. Research from HSBC has found that AI is struggling to win support as only 8% would trust a machine to offer mortgage advice, compared to 41% who trust a mortgage broker.
This shows that there’s a long way to go to build the foundations of trust. However, 76% of people say they feel comfortable using new technology and 80% say they believe technology makes their life easier, which shows that while consumers may not trust this technology (yet) they are willing to try it.
Mortgage brokers will need to evolve how they work and use technology to embrace this new age where mortgage bots sit at the front of the mortgage application process, but for now, human trust will win over technology. So while an AI bot might steal part of your job, working with an AI bot, not against it, is a powerful combination.