The Intermediary – June 2025 - Flipbook - Page 82
T E C H N O L O GY
Opinion
Is AI a threat to
the mortgage
broker’s job?
A
rtificial Intelligence
(AI) has been adopted
by a huge spectrum
of industries, with
the financial sector
reaping some
incredible benefits. Many mortgage
brokers and lenders are harnessing AI
to automate processes, boost efficiency
and offer advanced insights. However,
there are growing concerns that AI
isn’t simply a tool, but a potential
competitor.
How AI interacts
AI involves advanced computer
algorithms designed to perform tasks
that usually need human intelligence.
It is currently used in ways such
as: automated property valuations;
creditworthiness assessments; risk
analysis; chatbots; and personalised
mortgage recommendations.
AI can perform many of these tasks
beer and without human error. This
can make a broker’s input ineffective,
but there is more to the role of a broker
than these processes.
Mortgage brokers typically manage
client relationships, document
evaluation, and communication
between lenders and clients. These
client-facing duties are oen timeconsuming and labour-intensive for
brokers. AI is rapidly automating
several routine aspects of these tasks.
AI significantly reduces the time
required for document verification,
application processing, and
compliance checks. Meanwhile,
chatbots and virtual assistants provide
round-the-clock responses to customer
inquiries. These systems are useful
for homebuyers, as AI can efficiently
handle general communications,
gather basic information, and
recommend suitable products. It’s also
beneficial for reducing workloads.
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The Intermediary | June 2025
AI algorithms can evaluate
applications and financial histories
with enhanced accuracy and
consistency. By minimising human
error, they improve decision-making
quality and regulatory compliance.
Limitations
AI can’t do it all, which is why the
expertise of brokers will still be
relied upon. This is especially true
in areas such as personalised advice
and empathy, complex financial
situations, building relationships,
ethical considerations and oversight,
accountability and communication.
AI lacks the empathy and
understanding needed to manage
complex, individual financial
scenarios effectively. For clients with
unique circumstances, such as selfemployed individuals or those with
unconventional incomes, AI cannot
replicate nuanced human judgement.
Brokers regularly deal with
complex financial backgrounds that
defy straightforward algorithmic
assessments. Mortgage brokers oen
also develop lasting relationships,
supporting clients across multiple life
stages and financial events.
The Financial Conduct Authority
(FCA) is already taking a close look at
the integration of AI in the mortgage
industry, keeping duty of care and
borrower safety in mind throughout.
AI’s reliance on historical
data introduces risks of bias or
inaccuracies, complicating ethical
decision-making.
Explaining complex AI-driven
decisions clearly to clients can also
be challenging. Brokers maintain an
essential role as intermediaries.
Opportunities for brokers
By cuing out much of the monotony
and labour-intensive processes, AI
IFTHIKAR MOHAMED
is a mortgage consultant and
director at WIS Mortgages and
Insurance Services
tools make a broker’s job easier and
more effective. This can manifest in a
few different ways, from enhancing
client relationships to offering greater
industry insights. With routine tasks
automated, brokers gain time to
provide deeper, personalised support.
AI also allows brokers to improve
client experience through faster
application processes and more
precise product matches. AI-driven
analytics can equip brokers with
insights into market trends and
consumer behaviour, enabling
expanded financial planning and risk
management services.
The complete replacement of
brokers is not going to happen anytime
soon. The core of mortgage broking –
personalised guidance, empathy, and
intricate problem-solving – is beyond
AI’s current capabilities.
By adopting AI tools early,
brokers can position themselves as
industry leaders and enjoy all of the
benefits. Industry bodies recommend
professional development focused
on emerging technologies. Building
partnerships with fintech firms will
also help brokers stay ahead, ensuring
they remain competitive in a digitalfirst mortgage landscape.
Brokers should actively engage
with regulators and industry bodies
to influence how AI is integrated into
the sector. By participating, brokers
can ensure fair practices and clarity
regarding AI’s role.
By viewing AI as an intelligent
partner rather than a threat, UK
mortgage brokers can expand their
capabilities and continue thriving in a
changing industry. ●
