If I had a pound for every time I’ve heard the phrase, ‘I can’t believe it’s nearly Christmas already,’ I’d probably have enough to cover the cost of the entire festive period.
As 2024 draws to a close, the mortgage industry finds itself at the intersection of transformation and opportunity. Technology has been a driving force behind the sector’s resilience, enabling brokers and lenders to navigate a challenging market with innovation at its core.
Looking back on this year and ahead to 2025, it’s clear that digital advancements are not only improving operational efficiency but also redefining the homebuying experience.
Tech has been the force behind our sector’s resilience
One of the defining features of 2024 has been the growth of artificial intelligence (AI) as a core component of mortgage technology. No longer confined to experimental use, AI tools are now deeply embedded in the daily operations of brokers and lenders.
These tools have not only saved time but also improved placement and accuracy, reducing the frustration of rejected applications for both brokers and their clients.
Lenders too have embraced AI to augment underwriting processes, using it to assess risk and affordability with greater precision. They’ve also seen the benefit of enhanced efficiency around the detection of fraud.
Cyber-security will remain a top priority as the industry becomes increasingly reliant on digital systems
This year, customers demanded greater flexibility and convenience in their mortgage journey. Digital onboarding, automated decision making and enhanced client portals became standard expectations. These tools empower borrowers to track their applications, access documents and communicate with brokers in real time.
Lenders, in turn, are investing in platforms that integrate these capabilities while ensuring compliance with regulatory standards.
Open Property Data Association
One of the most exciting developments this year was the progress made by the Open Property Data Association (OPDA).
This coalition, led by Maria Harris and comprising industry leaders, aims to tackle inefficiencies in the property-buying process by standardising and streamlining access to property data. By enabling faster, more transparent data sharing among lenders, brokers and other stakeholders, the OPDA seeks to reduce delays in transactions, creating a smoother experience for all.
A pivotal milestone was the advocacy for new legislation, which could mandate standardised digital property records. This would eliminate much of the current duplication and fragmentation in data management. In turn, brokers and lenders can focus on delivering on speed of service and value to clients rather than grappling with outdated systems.
These tools have not only saved time but also improved placement and accuracy
The OPDA’s efforts mark a shift towards an open-data ecosystem, laying the groundwork for a truly connected mortgage process that will be welcome news for many.
Compliance remained a key focus in 2024, particularly as the Consumer Duty regulations continued to shape industry practices. Technology has a pivotal role in helping both brokers and lenders meet their regulatory obligations.
This will be an area with key developments next year, to enable brokers and lenders to better manage customer vulnerabilities with greater confidence that their needs are being met fairly and transparently.
As we reflect on 2024, it’s clear that technology has been instrumental in sustaining and evolving the mortgage industry. However, its success hinges on collaboration between brokers, lenders, the regulator and tech providers. By working together to embrace open standards and invest in cutting-edge tools, the industry can unlock the full potential of these innovations.
One of the most exciting developments this year was the progress made by the Open Property Data Association
But the future is not without challenges. Cyber-security will remain a top priority as the industry becomes increasingly reliant on digital systems. Protecting sensitive client data and ensuring the integrity of online platforms will require continuous investment in security measures.
Additionally, the rapid pace of technological change may create skill gaps, necessitating ongoing training and support for professionals to fully leverage new tools.
The mortgage industry finds itself at the intersection of transformation and opportunity
Next year promises new challenges, but with them come opportunities to further refine the mortgage process, making it faster, more transparent and, ultimately, more accessible for borrowers.
For those willing to embrace the change, the future looks bright.
Nicola Firth is chief executive and founder of Knowledge Bank
This article featured in the December 2024/January 2025 edition of Mortgage Strategy.
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