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gory for the vast majority of people. Accurate, leads with the added extra that low value activi- Looking ahead to 2009 it is evident that bro-
real-time online sourcing is the key to unlock- ties such as data gathering, learning rates and kers will see sourcing systems include much
ing this market and delivering a compelling criteria and re-keying across multiple systems more integration with lenders to ensure that
online proposition. A strong online solution have already been taken care of. processing times are quicker, whilst developing
will enable the user to view best buys, complete Focusing on broker facing sourcing systems the ability to update products with minimal
and submit an enquiry, review the results and the principal issue historically has been the lack time delays. Tranche management has, and will
apply online. It will also encourage the user to of accuracy. Many systems do not accurately continue to, become increasingly vital to
request intermediary help throughout the represent all of the lenders criteria and the lenders lending and risk capacity. Closer align-
process. information is often wrong and/or out of date. ment to systems enabling lenders greater con-
At this point it is important to emphasise This means that the systems are only ever use- trol and management over these capacities and
that the intermediary remains king. In terms of ful for generating a short-list. The broker criteria will help avoid the major bugbear of
the advice process no amount of online pres- would then have to contact the lender to con- swift product withdrawals without sufficient
ence will ever be able to replace the importance firm that the product still exists as advertised notice periods and the extended timelines
of personal contact, knowledge and experience and that the client is still able to access it – taken to re-launch the re-priced ranges. These
where necessary. Mortgage advice remains given that anything about the case is non-stan- were all major issues that have dominated the
complex and the sheer weight of decision will dard. industry over the past year.
always result in only a tiny minority of brave Whilst, at best, this is frustrating and ineffi- This integration will result in lenders not
people choosing to transact online without cient for straightforward cases, it is potentially only helping themselves but also ensuring that
engaging a professional for at least some part of dangerous for more specialist cases where the brokers are less exposed to the difficulties suf-
the process. product search list is likely to be meaningless fered as a result of liquidity and credit issues.
It is vital for companies such as Evaluate through incorrect product criteria and with- It is becoming clear that offline systems are
Technologies to be in a position to give con- drawals. In some cases this could also leave the being viewed as a thing of the past as more
sumers what they actually want. Demand sug- broker exposed to any potential miss-selling brokers are becoming aware of the benefits of
gests that systems should be in a position to claims. Given that the FSA has embarked on a online solutions and genuinely looking towards
offer web-savvy users the experience they are flurry of recent enforcement action and the them as the way forward. Putting it in the sim-
seeking, which is the ability to control as much issuing of large fines for firms without suffi- plest of terms, brokers want to be able to rely
of the mortgage process as they feel comfort- cient documentation, brokers are still placing on the decisions that they get from sourcing
able doing, whilst providing easy access to bro- themselves in the firing line unnecessarily by systems. They also want seamless integration
ker help throughout. not utilising systems that help with this docu- across all of the systems they use to transact
mentation process. This is also dangerous to and process their business. Fortunately there is
Continually evaluate the brokers reputation which is what sets them a new generation of sourcing systems emerging
Brokers should also continually evaluate how apart in this over populated and highly com- that are aimed at delivering the most accurate
they are doing business in order to best serve petitive market. results available regardless of how complicated
existing and potential clients. As previously the enquiry is. This is something that incum-
stated, in terms of technology, the mortgage Time and efficiency issues bent systems have previously been unable to
market is years behind most areas of financial There are also time and efficiency issues. Fast, provide.
services and brokers must get up to speed in accurate online sourcing systems will undoubt-
order to survive this current financial climate. edly save brokers time so that they can concen- End-to-end solutions
By incorporating an online sourcing tool into trate on their primary job of advising and Brokers should expect end-to-end solutions
their business model, intermediaries can attract selling products to clients in order to generate that offer a seamless mortgage process from
incremental business that they would not income. Diversification and maximising all IDD to sourcing to KFI to submission of appli-
receive through their existing channels of lead potential sales opportunities are of paramount cation - without the need to re-key any piece of
generation or appointment making, and look importance in the current financial climate and information. Systems will also encompass the
forward to receiving referrals from clients that we believe the future of sourcing systems facility for brokers to access a range of ancillary
want to be contacted by them. should incorporate the speed and accuracy products to open up valuable revenue steams
Online consumer-facing systems should be needed to fully capitalise on these opportuni- that have gone untapped for far too long.
seen as incremental to drive up income and ties. It has dawned on the majority of brokers
certainly not replacing the advice process. The The industry has come a long way from hob- that they can no longer rely on just providing
key is to give consumers choice in the way that byists sitting in their bedrooms building sourc- mortgage advice alone. Brokers must embark
they interact with brokers. By embracing online ing solutions and platforms but the fact on a far more holistic approach to the advice
solutions brokers can find themselves in a posi- remains that whilst intelligent delivery of tech- process and it doesn't take a studied look at
tion to offer more choice through increasing nology has long been heralded as the future of CML lending figures to see just how much the
the options available to enquiries. The conver- the mortgage industry, little has actually been current mortgage market has shrunk by.
sion of these enquiries should be higher there- done to embrace this. The longer the mortgage market lags behind
fore leading into written business of not just Efficiency needs be a top priority for brokers, other financial sectors the more difficult it will
mortgages, but other ancillary products and distributors and lenders of all sizes in order to be to generate and place business. Ultimately
increased referral opportunities, due to the maintain decent income opportunities and sur- 2009 will see offline sourcing solutions contin-
high level of satisfaction. vive. Quick, efficient and effective technology is uing to lose ground as their limitations contin-
becoming a must for brokers as it both reduces ue to be exposed. The year ahead will be all
Lead generation overheads and drives diversification into mar- about making technology work for savvy bro-
Lead generation is a constant battle for brokers kets where there is still capital market investor kers and distribution channels without battling
with an increasing number of tepid leads flood- appetite. The industry as a whole is slowly against antiquated systems, tepid leads and
ing the market. But by adding an online propo- beginning to truly understanding the impor- lender's technological inadequacies. Here's
sition under your own branded website, tance of technological evolution but there is hoping anyway.
brokers can generate their own genuine 'hot' still some way to go.
www.mortgageintroducer.com February 2009 Mortgage Introducer
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