The customer base of traditional mortgage brokers could “shrink” if they don’t compete with digital players.
Jonathon Stinton, head of mediation at the Coventry Building Society, said FTAdviser brokers attract viewers if the digital game is played correctly.
“Traditional brokers, referral brokers without websites or social media – if they don’t grow, their client base could diminish over time,” Stington said.
If they don’t get it right, Stinton said, digital brokers “can keep clients away from traditional brokers.”
Then last week in London Charles Cameron and partners Developed a fully remote consulting service during the pandemic – acquired by Socium Group.
“Brokers need to take multiple approaches to attracting and retaining customers,” says Stington.
“How do you want me to contact you?” There must be a question the broker is asking. Traditional companies do not rely on “it always works like this”, but on everything. Must be holistic. Large companies will begin to penetrate this sector. “
Stinton was aware of the “technical threat,” but others in the industry were less interested in competing.
“There is money there” Martin Stewart said, Director of The Money Group Franchise Consulting Network.
“Investors agree with the dream of digitalizing mortgages, but most of that money has been burned. Spend millions of dollars on kids wearing a Converse pool in the kitchen. Nothing like this. […] You can manage technical threats. “
Jeremy Duncombe, director of mortgages at the Yorkshire Building Society, called technology a “tool” for getting good advice.
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“Technology gives good advice,” says Duncombe. “He brought the market where it needed to be.
“Brokers need to implement technology. Companies are still hiring consultants because it provides an opportunity to start a conversation about advice.
“In the end, everyone advises. Therefore, the word “robo-advisor” is incorrect. This is either start-up only or recommended. You can’t have a half-baked home. “
“It’s not as fast as people thought,” Stington said.
“There is a place here,” he added. “But do you really think this will interfere with traditional mortgage brokers? I’m a little unsure, but you can learn from them about certain processes and efficiencies. “
In a recent Yorkshire BS survey, 78% of 2,000 buyers surveyed said for the first time that they would like to use a broker to get their first mortgage.