The Intermediary – July 2025 - Flipbook - Page 75
T E C H N O L O GY
Opinion
mobile apps and online portals are
equally critical. These platforms play
a vital role in maintaining ongoing
engagement, especially in the savings
market where customers interact
more frequently.
Savings customers may log in to
check maturity dates, transfer funds,
or manage savings goals – all of
which help build a consistent digital
relationship. When lenders offer
tools like in-app goal seing, crossaccount payments, live chat support,
or personalised product nudges,
they not only increase retention but
also elevate their position as trusted
financial partners.
Mortgage and savings products oen
go hand-in-hand – and institutions
that treat them as part of a coherent,
digital-first customer journey will be
beer placed to deepen loyalty and
drive lifetime value.
Balance sheet size matters
A number of factors are driving
lenders’ decision to invest in
technology now, with broader
regulatory and systemic shis
creating an even stronger argument to
encourage borrower retention.
The Prudential Regulation
Authority (PRA) has powers under
the Building Societies Act to direct
societies to merge if it considers
it necessary to protect members’
interests. The Global Financial Crisis
of 2007-8 offers a stark reminder of
what happens when balance sheets
weaken – numerous societies were
forced into mergers. More recently,
the wave of consolidation has
continued, with Coventry Building
Society acquiring the Co-operative
Bank and Nationwide acquiring
Virgin Money.
Customer value
Retention also plays a crucial role in
delivering fair value to customers –
something now firmly embedded in
regulatory expectations under the
Consumer Duty.
Supporting customers at the end
of their deal and offering them
competitive retention products is part
of delivering on this duty.
Systems that provide customers
with a slick interface to choose a
refinance route that suits them are a
big draw for borrowers – especially
those with the confidence to selfselect, having gone through the
remortgage process in the past.
Broker benefits
Following the Financial Conduct
Authority’s (FCA) Mortgage Rule
Review (MRR) consultation proposals,
there has been a lot of back and forth
on what the future holds for advisers
in a world where execution-only
transactions are made easier.
However, through conversations
with various building societies – both
large and smaller – it’s very clear that
intermediaries will remain a crucial
partnership for lenders post MRR.
Indeed, what maers to lenders at the
point of refinance is that customers
have a choice. The Intermediary
Mortgage Lenders Association (IMLA)
predicts that broker market share will
rise from 87% in 2024 to 91% by 2026.
Many lenders are responding
by ensuring that their retention
processes work just as well for brokers
as for borrowers.
Appetite for change
Our research found that midtier lenders overwhelmingly see
upgrading by adopting cloud-based
platforms as essential to supporting
retention. Ultimately, this is about
more than technology or cost-saving.
It is a cornerstone for how lenders can
deliver long-term value, maintain
their independence, and continue to
serve their members and customers
effectively.
As competition intensifies and
regulatory expectations rise, those
lenders that can combine smart
technology investment with a genuine
focus on customer value will be best
placed to thrive. Retention isn’t just
good business sense, it’s vital to the
future of the sector. ●
July 2025 | The Intermediary
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