MI_26-27_IT tech.qxd 22/1/09 14:50 Page 2
26 | Technology
Julie Speed, national accounts director
at Evaluate Technologies, looks at why
the internet has had limited impact on
mortgage distribution
I
wonder just how many people reading UK shoppers spent 16 per cent more on inter-
this article have recently purchased net purchasers up to December 2008 than in
something online. My guess would be the previous year.
the majority. And why is this? Well I The IMRG Capgemini e-retail sales index,
believe it is simply because people have which tracks U.K. internet sales across 70 com-
become comfortable with buying panies from Marks & Spencer to
online. This is due to people of all ages Lastminute.com recorded positive monthly
having easy access to the internet which we and yearly growth across every sector
olais
have become increasingly reliant upon as part November 2008. It also reported that
Nik
©
of our buying, comparing and information online sales for November were up
gathering culture. Of course we still hear of a 26 per cent compared with
few scaremongering stories of tales of woe from October's figures as consumers con-
online purchases but if people follow a few tinued to avoid the high street in
standard precautions then the whole transac- favour of internet bargains.
tion remains highly secure. There is no getting away from the
A major incentive in the current financial influence of the internet and online technology
climate is the ability to compare prices across a on consumers but it does offer up the question tomer experience is to be duped into entering
multitude of sites from various retail outlets. To of what impact this technology has had on the their contact details so that they can effectively
complement this enhanced search facility a mortgage distribution market? The answer is be cold-called by a seemingly random mort-
number of retailers consistently highlight an surprisingly little and, like most people that has gage broker after they have been sold off to the
increasing amount of 'online only' deals in an interest in technological solutions, I for one highest bidder as a 'lead'. This is not compara-
order to drive traffic and transactions to their expected it to be far much more influential ble to the service offered in other industries
websites to help streamline in-store costs. This than it has been to-date. and this remains the main reason for the slow
means that in most cases it pays to shop online progression of the web across the mortgage
and savvy consumers have swiftly cottoned Inadequate proposition market.
onto this fact. Delving into the why's and wherefores, the sim- Experience in other financial service markets
A good indication of the rise in online sales ple answer is that the propositions offered by indicates that consumers want to use the inter-
was a recent study from Interactive Media in the industry to brokers and consumers have, so net to compare prices on any goods or services
Retail Group (IMRG) – the industry body for far, been vastly inadequate. In terms of con- costing a significant amount of money.
e-retailers - and Capgemini which stated that sumer comparison engines the standard cus- Without question, mortgages fall into this cate-
February 2009 Mortgage Introducer www.mortgageintroducer.com
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