The Intermediary – June 2025 - Flipbook - Page 30
Looking ahead, Shand
sees an opportunity for
firms to rethink customer
engagement. He says: “This
review also provides an
opportunity for firms to
rethink how they engage
with customers across the
mortgage lifecycle. With
simpler switching comes
greater responsibility around
communication.
“Firms must ensure
customers understand their
options, protections and
rights, know when and how
to act, and are supported with
clear, timely information.
The goal should be to deliver
smoother journeys without
sacrificing clarity or care.”
Innovation,
competition,
inclusion
The closing of the CP25/11 consultation
marks the start of a new phase. The FCA is
"If we can't even agree on the choice
of lunch sandwiches..."
expected to publish its policy statement later
this year, with further reviews and discussion
papers to follow.
accommodate these changes would be both
to prioritise simplicity, efficiency, and consumer
expensive and complex, making widespread
empowerment, while questions of protection and
implementation challenging.
fairness remain central.
Digital transformation is set to play a central
For those embracing innovation, Shand
believes that a more flexible regulatory
role in the next chapter for lenders, brokers, and
environment could drive progress, enabling
consumers alike. Lenders are investing in new
firms to refine processes and develop more
platforms that promise smoother onboarding,
user-friendly digital tools, but stresses the need
automated affordability checks, and easier
for robust accountability. Under Consumer
product switches. Artificial intelligence (AI)
Duty, firms must ensure positive outcomes for
and automation are now being explored for
all customer groups, which requires ongoing
everything from credit assessment to fraud
monitoring and tailored support, especially for
detection. However, even as technology raises the
those less able to engage with new systems.
bar for speed and convenience, it introduces new
There is optimism about the role of AI in
risks – digital exclusion, data security, and the
supporting customers through their mortgage
loss of the personal service that many customers
journeys, especially as digital engagement
still value.
becomes more common.
Singh warns that, over time, consumer
Hutchins says: “With the interaction trigger, for
experience could regress to “faceless processes,
example, if we can make it easier for customers to
low-bar suitability, and higher lifetime costs.”
ask questions about their mortgages, then we can
Davies points out that while technology
may streamline processes, widespread
implementation will be challenging, especially
for larger lenders with legacy systems.
She observes: “There may well be scope
30
She adds that adapting systems to
The direction is clear: regulation will continue
see a big benefit in tech or AI helping support
customers through those journeys.”
Beardmore notes that the consultation
outcomes could fundamentally alter the industry,
particularly if the removal of interactive dialogue
for lenders to streamline and speed up the
prompts a shift towards more execution-
assessments which they deem necessary – but
only sales. She believes this could accelerate
this would not require a regulatory change.”
technology-driven customer journeys, increasing
The Intermediary | June 2025
