The Intermediary – September 2025 - Flipbook - Page 35
Q&A
servicing options, lenders can maintain brand
integrity while delivering seamless support.
How does the tech improve risk
management and compliance?
Technology is no longer just a tool for efficiency
– it’s a strategic asset for managing risk and
ensuring regulatory compliance. From artificial
intelligence (AI)-powered automation to
predictive analytics, digital innovation is helping
firms stay ahead of regulatory shifts while
improving borrower outcomes.
AI and machine learning are now central to
identifying early signs of borrower distress,
enabling proactive interventions that reduce
defaults. Meanwhile, compliance platforms
automatically track and adapt to evolving
regulations.
Tech is enabling hyper-personalised messaging,
while maintaining strict adherence to advertising
and privacy laws. Large Language Models
(LLMs) are even being used to analyse borrower
conversations, flagging potential compliance
risks and sentiment shifts in real time.
The result? A smarter, more responsive
servicing model that balances customer care
with regulatory rigour – transforming risk
management from a reactive function into a
proactive advantage.
Where do you see the biggest
opportunities in the BTL sector?
The BTL sector is evolving through tech,
sustainability, and new investment models.
Key opportunities include smart property
fitting, and
management, green retrofi
ategies. Target
tailored tenant strategies.
is supporting this by enhancing its
mortgagee servicing capabilities – using
data-driven insights, digital tools, and
sustainability to help landlords and
lenders adapt and thrive.
s, banks
It’s important for lenders,
and building societies to think about
oduct
the future of changing product
lines and having a diverse
target operating model to
cater for complex lending
as specialist finance goes
oup
beyond BTL. At Target Group
we have the capability
to service many types
of lending, including
bridging, commercial,
MELANIE
SPENCER
structured finance, development finance and
asset finance.
Specialist finance is increasingly becoming a
permanent fixture in UK lending, especially in
BTL. As high street lenders tighten criteria and
retreat from complex cases, specialist lenders are
stepping in with flexible, tailored solutions.
While some growth is cyclical, the overall
trend suggests a structural transformation in the
market. Specialist finance is likely to remain a key
player in UK lending long-term.
Rising interest rates and tighter affordability
are driving more borrowers away from
mainstream lenders and into the specialist
market, which is seeing rapid growth in areas
like shared ownership, retiree lending, and selfbuild mortgages. These borrowers often require
flexible and tailored lending solutions.
In response, tech providers like Target
Group are helping lenders adapt, manage
risk, streamline operations, and deliver better
customer experiences in a more demanding and
regulated environment.
Scaling successfully requires embedding
compliance into every aspect of operations, using
tech to automate and manage risk, and offering
strategic outsourcing to accelerate growth
without compromising control. Our modular,
scalable servicing solutions support a wide range
of asset classes, while our emphasis on speed
and agility enables lenders to enter the market
quickly and confidently. By combining deep
regulatory expertise with flexible platforms, we
ensure lenders grow efficiently while maintaining
robust governance and risk management.
After more than a y
year in the role,
what is on the horizon?
Over the past year, I’ve been pr
proud to lead
initiatives that have ac
accelerated Target’s growth
trajectory and strengthened our market
position. Key achievements include deepening
strategic partnerships, eexpanding our
acr
presence, and driving innovation across
our
platf
digital servicing platforms.
We’ve also made
significant strides in aligning our commercial
strategy with evolving client needs.
m focus is on
Looking ahead, my
scaling our capabilities in datadriven decisioning, enhancing
our proposition for lenders,
c
and continuing
to foster a
cultur of collaboration and
culture
agility to meet the demands
of a rapidly changing financial
landscape. ●
September 2025 | The Intermediary
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