The Intermediary – May 2025 - Flipbook - Page 78
T E C H N O L O GY
Opinion
Brokers understand
the value of lender
technology
T
hey might not say it
openly all that oen,
but brokers rely on
good technology
all the time, and
very oen that
technology belongs to lenders. From
the moment a decision in principle
(DIP) is submied, to the moment an
application completes and goes onto
a core banking system, the role of
the lender in supporting a broker’s
business is significant, to say the least.
Brokers have a lot to contend
with, aside from the evolving shape
of the mortgage market. The US’
unpredictable foreign policy and
sweeping trade tariffs, for example,
have brought worldwide disruption
to supply chains, volatility to global
markets and thrown another layer of
economic uncertainty into the mix
for central banks deciding domestic
monetary policy.
Escalating tensions
The ripple effect of all this change for
consumer price inflation (CPI) is likely
to be material. In mid-April, around
240 container ships were waiting for
berths across China, more than double
the number waiting off the US West
Coast. The backlog and subsequent
delays in the delivery of goods
worldwide affects global supply chains
and pushes up shipping costs.
This is not a temporary stressor,
either. Industry experts suggest the
situation may persist for the next few
months. A trade war is escalating,
further straining relations.
UK CPI figures for March showed
a drop in the rate of annual inflation
with prices rising 2.6%, down from
2.8% in the 12 months to February. On
a monthly basis, CPI rose by 0.3% in
March 2025, compared with a rise of
0.6% in March 2024.
76
The Intermediary | May 2025
This has given the Bank of England
breathing space, and indeed it held the
base rate in April at 4.5%.
There is speculation that further
cuts could come this year given the
fall in inflation back almost to its
2% target. Yet the global trade standoff has prompted analysts to warn
that tariffs could push prices higher,
quite quickly, in the UK. The Bank of
England is mulling over its stance on
interest rates as a result.
Brokers and lenders know that
mortgage rates are not immune to
all this. However, it goes far beyond
pricing and the ability to turn around
products quickly. Operational
efficiency is regularly impacted when
market and rate changes are swi,
and older technology simply cannot
deliver. This becomes magnified, too,
when consumers apply pressure aer
seeing other parts of the industry
appear to effortlessly cope.
For brokers, ensuring that they
are serving their clients to the best of
their abilities takes all their efforts.
Sourcing the most appropriate product
at a moment in time is just the very tip
of the tip of the iceberg for most cases.
Clients need constant
communication and depending
on the length of the transaction,
ongoing product options are a factor
for consideration. It is not the client’s
responsibility to ensure that the
advice they received on day one is
still the right advice on day 60 –
especially when the world economic
situation has changed radically in that
timeframe – it is the adviser’s.
In this world and that operating
context, lenders must consider how
best to support brokers who are
juggling this for multiple clients
across many different caseloads.
What really maers for them is to
make the process of providing the best
JERRY MULLE
is UK managing
director at Ohpen
possible advice as simple and efficient
as possible.
Controlling the amount of
inefficient administration they are
forced to contend with on top of this
might sound straightforward, but
more oen than not it’s the haybale
that breaks the camel’s back.
Common sense changes
Lender systems have always been a
factor in the choices brokers make
when advising their clients on the
most appropriate product – and
crucially, the most suitable option for
their needs.
Particularly where timing is key,
processing efficiency is as important as
rate – arguably more so. For brokers,
this means minimising the amount
of rekeying and number of manual
product searches they’re forced to do.
Networks are acutely aware that
they need to support their members
in this. It’s pushing change among
lenders that offer more niche
mortgage criteria, cater to customers
with more complex income streams
and where property risk assessments
require a modicum of common sense.
The market is seeing an increasing
appetite to take-up more flexible
cloud-based technology platforms –
but that leaves lenders who are still
relying on legacy systems at a growing
disadvantage.
In those businesses, IT departments
must make the business case to invest.
Brokers are already making these
decisions on behalf of their clients.
Lenders that want to stay in an
increasingly unpredictable game need
to consider whether they have the
tools to keep playing and if not – get
in touch! ●
