The mortgage industry has long been known for its labour-intensive, manual processes. However, in recent years new innovations have started to change this, as trends like Virtual Reality, Artificial Intelligence and cryptocurrency become mainstream and industry leaders adopt technologies to create more seamless, personal experiences for their customers.
In this blog, we’ll give you an idea of what mortgage brokers will look like in 2020, so you can stay ahead of the curve and make sense of these tech trends.
Making processes easier with Artificial Intelligence
Artificial Intelligence has become a cultural phenomenon over the last decade, inspiring TV shows and films that leave audiences with a distrust for the technology. However, in the real world, there are many benefits to incorporating AI into broker systems; such as streamlining automated processes, reducing administrative tasks and creating a more personalised customer service.
Robo-Advisors
Robo-advisors are being used to improve customer services and personalise product matching. Across the globe, brands are integrating AI chatbots into their websites and experts predict that by 2020, over 80% of businesses will have some sort of chatbot automation implemented. With speed and transparency becoming increasingly important to customers, using AI to create a streamlined experience for your clients is key.
However, there are some who have concerns that AI’s adaptive technology won’t be able to benefit mortgage brokers as effectively as other property professionals, because it can’t necessarily interpret complex cases or create effective solutions in drawn-out cases.
This has led experts to predict that by 2020, the developments in AI will result in firms redesigning their services, where brokers personally deal with complex cases and become specialists in high-value mortgages, and AI is used to process simpler cases. This demonstrates how there will always be a balance between expert advice provided by brokers, and technology used for automation.
The enormity of your client’s investment and the complexities of individual cases, mean that human brokers will always need to be a part of the property process. After all, your industry experience and ability to offer reassurance to your clients is something that AI can’t replicate.
Mobile first
Did you know that 98% of people start their search for a new home online? And 89% of those people used their mobile to research throughout the process?
With the vast majority of customers using their phones to research, apply and track mortgage applications, it’s imperative for brokers to adopt this mobile-first mentality. Whether it’s ensuring that your website is designed for a smaller screen or partnering with the right technology companies to offer more digital services, there’s no way around this trend, especially as more Millennials and Gen Zs join the property ladder.
Not only does this approach benefit your customer’s experience, it can also improve your team’s processes. With an app based infrastructure, it opens up an opportunity for your brokers to work remotely and easily access information.
Blockchain
Firstly, what is Blockchain? In essence, Blockchain is a type of data structure that records and tracks digital transactions in a secure platform. For mortgage brokers, Blockchain is an exciting opportunity for firms to create a more streamlined and secure process for storing and accessing property information.
For example, imagine being able to access a database (the Blockchain) that contains historic survey valuation data on a single property, so that you’re able to check a home’s value in seconds. This ‘valuation-checking’ process is currently being developed by government-backed ASTRI (the Applied Science and Technology Research Institute), and is thought to be the “first production-grade [Blockchain] mortgage system to integrate with a bank.”
On 19th March 2018, the first ever UK property was sold in Manchester using Blockchain technology. We expect this to become a more regular process by 2020, so it’s worth keeping your eye on Blockchain updates.
Open Banking
How does open banking work? In essence, Open Banking is an initiative set up by the UK’s CMA to encourage more competition within the financial services industry, and to improve innovation in customer banking services. It works by letting online service providers gain access to your bank account so that they can create bespoke services tailored to your personal needs.
Open banking is a great opportunity for brokers to streamline the traditional mortgage application process by storing data in a central location. For example, instead of having to request 3 months of payslips and banking statements from your customers, API technology powered by Open Banking will automatically collect your client’s financial information. This can significantly cut the time it takes to underwrite a policy and creates a more streamlined process for everyone involved.
For brokers, open banking allows you ‘to unlock new insights, and effectively compare your current (and future) financial products’ for a more competitive edge. This open data model is a great platform for product innovation, and ultimately provides customers with more choice for services.
Crytpocurrency
As it currently stands, cryptocurrency is viewed by some in the mortgage industry with scepticism. But with around 13.5 million Bitcoin users and 28.5 million Bitcoin wallets, there’s no denying its rise in popularity over recent years. So what does that mean for brokers?
Due to cryptocurrency’s instability and lack of central regulation, most mortgage brokers aren’t currently accepting any deposits that derive from cryptocurrency. However, this is beginning to change. UK banks like Coventry Building Society, Skipton and the Yorkshire Building Society have recently announced that they will start accepting deposits derived by Bitcoin, showing how some firms are trying to stay ahead of the curve. Bitcoinist, a cryptocurrency news site, have also reported that properties in the US and Dubai have been sold using Bitcoin.
We predict that by 2020, more regulations will come into place making cryptocurrency a more viable capital option for your clients. That means you’ll need a thorough understanding of how it works, how it’s bought and how your financial infrastructure can process it.
So what does all this mean for mortgage brokers?
It’s no secret that the property industry can benefit from implementing more technology into its products and services; for both consumers and professionals. Modern consumers want more options, transparency and quicker services; whilst brokers and agents want better internal systems and access to information. The trick is working out which technology suits your business and product offerings.
In 2020, we predict mortgage brokers will be using technology like Blockchain and Artificial Intelligence to speed up automated processes and to create better customer experiences. We expect to see a higher demand for specialist mortgage services and significant adoption of mobile-first platforms.
We’re excited to see how these new technologies will impact the property landscape during 2018 and 2019; and as proptech specialists, we’re keen to see how the When You Move community of mortgage brokers, conveyancers and estate agents adopt these trends.
In the meantime, you can schedule a free demonstration of our platform for first-hand insight into how technology can streamline broker processes and create better customer experiences.