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Unlocking the potential of mortgage market technology

Customer expectations are rising rapidly throughout financial services markets as the technology behind automation and artificial intelligence (AI) develops.

From live access to account data through banking apps, faster payments, and faster processing, it’s clear these developments have the power to transform our industry and the customer service we can offer clients.

For example, banks are now able to use more advanced data analytics to understand customer needs, to better meet their expectations.

Moved on

In the mortgage market, we have moved on from the one minute mortgage to the potential for automation and AI to provide advice to customers while generating useful data.

Buying a home is the largest purchase of a customer’s life and they should have the time to make sure they have made the right decision, with technology working with them to ensure it is as stress free as possible.

There are a variety of tools we can use to mitigate potential technology risks, not least sharing best practice around security threats and the latest developments along with deploying penetration testing.

The FCA has developed a sandbox which allows businesses to deploy new technologies and test them in a safe environment, working with the regulator before they are deployed.

We should focus on areas which add real value to customers, making the process less stressful while at the same time putting additional checks to identify vulnerable customers.

Protecting the vulnerable

Automation and AI systems have a built-in safeguard themselves – for example, if a system has a concern around a customer it will hand the case off to a human adviser.

Clearly there are many advantages to automation: technology doesn’t get tired and – systems permitting – provides 24/7 access to the market, as well as consistent decision making.

The ability to scan and attach documents, auto verify their authenticity, confirm a customer’s identity and cross-check with external data sources, are all examples of how technology has helped make customer lives easier, reduce risk to the customer and help lower costs for lenders.

However, while technological advances can make life easier there are always risks which need to be mitigated and managed.

With more data available online, and processes becoming faster and increasingly streamlined, the industry needs to ensure its cyber security and data checks keep pace.

The next great advance in the realms of automation and AI may not have even been thought up yet.

It is essential that lenders invest in new advancements in technology, and commit to developing solutions which can adapt to take advantage of next generation technologies quickly and flexibly.

As published by Mortgage Solutions.

Photo of Keith Green

Keith Green

Strategic product director, Capita Mortgage Software

Keith specialises in mortgages and strategy, having spent over 12 years working in retail banking, with Halifax Bank of Scotland and the building society sector before moving into consultancy. Keith has worked in a variety of advisory roles for leading consultancy firms such as Accenture, Grant Thornton, Navigant and Berkeley Research Group where he was a leading advisor on mortgages and strategy in the United Kingdom and Internationally.

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