We speak to Lee Trett, Mortgage Adviser & Director at Echo Finance and Teito about AI, regulations and the evolving role of the mortage broker.
What resources can mortgage brokers use to stay informed about the latest technological trends and access fair, practical advice?
Fortunately for us we have a dedicated industry press that reports on AI developments in the mortgage world. Publications like Mortgage Introducer and Mortgage Solutions have published articles about how it is being implemented as well as the pitfalls and possibilities, so keeping an eye on what specialist media are reporting is one way to stay informed.
Any brokerage worth its salt will also have connections in the digital world too. We all need developers and IT professionals to help reach the right customers, whether that’s contractors or in-house staff. Our colleagues in these roles have their ears closer to the ground than us on AI advancements, thus we’re always keen to hear what they have to say about them.
Finally, our regulatory body, the Financial Services Authority (FCA) has been proactive about exploring the potential of AIO in our industry. They have been keen to promote its safe and responsible use in UK financial markets. We always keep tabs on any guidelines and commentary they put out on this topic to stay up to date on best practice for AI use.
What strategies would you recommend for successfully introducing new technologies to ensure full stakeholder buy-in?
New technology has always been driving change in mortgage lending long before AI came along. You can go all the way back to online mortgage calculators and live rates services for examples of that, and figuring out how best to incorporate them is always a challenge.
The best way is to gradually introduce new tech and ensure it complements the way we do business and serve our clients. Once you have tangible results to show other stakeholders, you can begin deploying the tech on a bigger scale, assuming the results are positive.
Specifically in the case of AI, the best path would be to trial its use with a select few mortgage advisers or specific pages on our website. That way we could prove the concept and carry out AB testing to determine whether it should be more heavily invested in.
It’s also important to make sure you have the right infrastructure in place. It is pointless investing in a technology like AI with developers who specialise in maintaining it, and a workforce that is savvy when it comes to maximising its potential.
What types of AI-driven solutions would you be most interested in exploring or adopting?
We don’t feel like AI is at the stage where it can replace human mortgage advisers just yet. A machine cannot replace the empathy our brokers have for our customers or generate the same level of trust in clients that is essential for decisions as big as taking out a mortgage.
But there is certainly a place for this in assisting and empowering our brokers. AI systems could help in areas including checking a client’s eligibility for a mortgage, which would mean filtering out people we cannot help, so they can spend more time getting the best outcomes for the clients we can make a difference to.
Similarly, an AI system could potentially help brokers find the right mortgage lenders for their clients much faster. It could automate their search by filtering out lender the client would not qualify for, giving the adviser more time to focus on getting the best client outcome.
The potential for AI in lead generation is huge. Financial services companies spend a lot of money producing content to attract customers to their websites, and this is something AI is getting better and better at.
We do not see it completely replacing human-written content in this industry anytime soon, but there is no reason why it can’t supplement it by creating useful components for finance websites, such as rates tables, graphs and charts showing vital statistics and automatically keep them updated with the latest data.
What role do digital transformation and automation play in improving client experiences?
One of the things most of our clients want is to achieve their financial goals faster and with less stress marring the process. This is something digital technology and automation can help us deliver for them. There are steps in the mortgage process, particularly early on, that can potentially be more automated, depending on the customer’s level of need, and this would mean a better experience and a smoother journey for them due to reduced admin and consultation.
At the same time, these technologies can help brokerages serve more clients due to the time they will save, but it’s important to ensure that this tech is empowering the broker, not replacing them, as you will always need a human you can trust in your corner for something as big as a mortgage.
How can emerging technologies help Echo Finance maintain a strong competitive edge in the mortgage industry over the next few years?
Echo Finance has always harnessed new technologies to stay ahead of the curve and offer customers options that many of our competitors cannot. We have an online service called Teito under our umbrella, the aim of which is to empower our customers with tech and help them navigate the mortgage process quicker and smoother.
Technologies we offer so far include sophisticated mortgage calculators, including one for very specialist products such as self-build mortgages, and a DIY service that allows our clients to choose their own mortgage in real-time, with the help of our advisers.
We see a big opportunity to integrate AI into these systems over the coming years to automate more aspects of them and make the process even quicker and stress-free for the borrower, but the role of our brokers will remain central to the way we serve customers.
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