A panel of residential lenders agreed that technology, such as Open Banking, has the potential to transform the mortgage market at FSE Manchester.
Dave Rodgers, intermediary partnerships director at Barclays, said that only about 30% of individuals would agree to share to their data.
He said: “I think a mixture of digital and face-to-face is the way forward and I think open banking may be able to get rid of paper and help ID customers. I think it’s really positive.”
Richard Tugwell, group intermediary relationships director at Together, agreed that the opportunities are there but added it’s a bit early to tell.
Charles McDowell, commercial director of mortgages at Aldermore, said: “The benefits will be massive and really exciting.”
Rodgers added: “I think we’ve worked really hard over the last 10 years to iron out the fraud and will find a way to solve that problem as well.”
Ian Andrew, managing director, intermediary sales at Nationwide Building Society, added that it’s a challenge and doesn’t know what the uptake will be.
He said: “Open banking and APIs will make digital mortgages more available.
“I think the level of engagement has improved from clubs and networks over the years.”
Rodgers brought up the issue of fraud that customers worry about and mentioned that lenders are the first line of defence and have tackled fraud well over the last few years.
One question from the floor asked whether fraudsters could pretend to be lenders because there’s nothing in place for a broker to identify a lender.
In response Andrew said: “Identification and verification is something we’re wrestling with to make it simpler. We haven’t got a solution for it yet.”
Aldermore has started lending into later life, pushing up the maximum age of lending to 99 year olds.
McDowell said: “We are relentlessly driven at those areas underserved and later life lending is one of those areas.”
Andrew added that Together has started later life lending too.
He said: “It’s all about the customer and we have customers we believed will benefit from later life lending.”
When discussing lenders offering free legals, Andrew mentioned how it’s about choice which is nothing but beneficial for the market.
Rodgers reiterated this, adding that it’s about consumer choice.