LONDON; July 18 2017 — According to Accenture (NYSE: ACN) research conducted for the Council of Mortgage Lenders (CML), a leading association of banks, building societies and other residential mortgage lenders, digital change is radically altering consumer expectations in the UK mortgage market and raising the bar for what borrowers expect from their home-buying and home-owning experience.
The report, titled “Digital Change and Mortgage Borrowers” is based on analysis from Accenture Research and outlines the potential for technology to differentiate what individual lenders have to offer to customers and enhance the competitiveness of the UK mortgage market.
The research included interviews with firms and customers across the mortgage sector. Accenture also looked at developments in mortgage markets around the world and how technology is affecting other industries. Among the key findings:
84 percent of mortgage companies believe that technology can improve customer experiences and relationships;
76 percent believe that technology can improve their own operational capabilities;
68 percent believe that technology can put customers in greater control; and
From apps on which customers can arrange and manage their mortgages to digital property searches and the potential of technology to deliver automated decision-making, the mortgage market is evolving rapidly. But the research also highlights the challenges for lenders in a market in which two-thirds of customers prefer to speak to an adviser about complex products and value being able to ask questions and receive a personalized service.
“The research provides a real sense of lenders and the mortgage community wanting to re-think how the mortgage process works and give the customer greater control,” said Stirling Bookallil, a managing director in Accenture’s Financial Services Banking practice. “The feedback received shows a real opportunity for the industry to do things differently, from thinking about new business models, new digital capabilities and greater use of data.”
The research also highlights the challenges that technology presents for lenders, including the limitations imposed by legacy thinking and systems, the need for greater external collaboration and to keep pace with change, and the way in which compliance with necessary regulation can inhibit the pace of digital development.
“This report highlights the enormous potential of technology in the mortgage market—a huge, process-driven industry with more than 11 million customers,” said Paul Smee, CML’s director general. “Technology is already enhancing what lenders are able to offer their customers, as well as improving the efficiency of work behind the scenes. The pace of change will not slow, and firms will need to ensure that their plans for developing technology are underpinned by the clearest possible understanding of all the implications of digital change.”
The report is based on research into the UK and global mortgage markets. Interviews were held with 28 companies from across the mortgage ecosystem including lenders, intermediaries, valuation and surveying and technology partners. Interviews were conducted with a selection of mortgage customers and prospective customers, along with data and insights from Accenture’s 2016 Mortgages Consumer survey and 2017 Global Consumer Banking Survey.
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About the CML
The Council of Mortgage Lenders' members are banks, building societies and other lenders who together undertake around 97% of all residential mortgage lending in the UK. There are 11.1 million mortgages in the UK, with loans worth over £1.3 trillion. www.cml.org.uk
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