In fact, if anything, it is more likely associated with clumsy legacy systems, poor and impersonal customer service and crippling interest rates. But while global demand for mortgages is stalling, there’s also pressure on banks from regulators to better support homebuyers, creating a valuable opportunity for innovation. Read on to find out more about this exciting time in this snippet from our Partner Predictions Report.

More from your mortgage

In 2024, customers are informed, demanding and very specific about what they want from their partners, and this includes their banks.

Natasa Kyprianidou, Senior Director of Product Management at Publicis Sapient notes that, “the expiry of 1.8 million fixed deals in 2023 underscores the demand for product switches and re-mortgages.” Inflationary pressures and ever-growing innovation from new, tech-savvy providers contribute to the call for better integration of mortgages into customers’ financial lives.

Real-time decision making in credit applications for example, would save time and emotional energy while unique services and functionality along with intuitive user experiences would grow greater loyalty to the bank. Many of these kinds of requirements however aren’t compatible with existing legacy tech and banks need to evolve and adapt or face becoming irrelevant.

Game-changing tech

Specialist lenders pose a big threat to more traditional retail banks. The growth these lenders are experiencing from borrowers who need tailor-made solutions is considerable – and it’s largely down to the tech that’s helping them achieve it. Making the mortgage process easier with accelerated credit risk assessments and real-time application is one example of the efficiencies new technology can deliver. Cutting edge tools like AI-driven mortgage origination, virtual assistants and APIs for efficient scaling will create an exceptional, seamless experience and not just for customers – for brokers too.

There are so many exciting functionalities for this market that can lead to bespoke solutions – from personalised financial assistance and real-time advice to expediting offer generation and engaging customers with pre-qualified deals before their mortgages mature.

Retail banks are now looking to innovative tech partners to deliver these point solutions and streamline the journey. Mike Fisher, Interim CEO and Chief Product Officer at Mutual Vision, comments; “modern technology platforms are a must when looking to combine solutions in this way and therefore system modernisation activity will continue to increase as lenders look to move away from legacy systems.”

Serving the homebuyer

This is a hopeful time for both banks and customers and an opportunity to make the mortgage process more accessible and a better fit for the individual. Options like interest-only transitions and term extensions to ease monthly financial burdens and financial assistance like payment deferrals can be extended to those in need.

Enticing and helpful embedded offers like a 0% deposit rent-to-own, income- boosting joint borrower, sole proprietor mortgages, and a 5% deposit allow first time buyers or underrepresented buyers to enter the market. Ultimately, the end game is empowering homeowners and borrowers through technology for a more intuitive mortgage experience.