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While borrowers’ expectations for digital loan applications have increased, brokers’ uncertainty persists.
According to new research from Connective, over a third of borrowers desire an all-digital experience, with those between 25–54 years of age having the highest expectation of an entirely digital loan process.
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The recent research paper, “Driving Success by Optimising Technology”, has revealed that despite this, brokers have a “mixed outlook” with only 15 per cent feeling capable of delivering this service for clients.
The report found 29 per cent of brokers surveyed felt lender requirement was a barrier, followed by software functionality (23 per cent) and general confidence with technology (19 per cent).
Connective’s chief customer officer, Gingkai Tan, said this reinforces the opportunity this brings for brokers.
“The digital world we’re progressively finding ourselves more entwined in has created an expectation of instant gratification.
“We’re now seeing consumers’ demand for the speed and convenience of e-commerce solutions permeating our industry.”
“As the rate of technological advancement continues to grow exponentially, mortgage brokers are afforded the ongoing opportunity to innovate, improve efficiencies and deliver an even better client experience,” Mr Tan said.
However, despite the digital era being well and truly upon us, Connective research found less than half of all brokers embrace social media (47 per cent) and developing websites (46 per cent) to generate leads.
Further, just over one-third are embracing automated marketing tools (37 per cent).
Mr Tan said having a successful brokerage is not solely about technology, but when brokers leverage technology to nurture client relationships, they are even more successful.
“Embracing a fully digital application process is only one element — we’re still very much an industry built on personal relationships. But it’s how these relationships are established and nurtured through technology that’s increasingly important,” Mr Tan said.
“Our research highlights that it’s not just about having the right technology stack — it’s about how you use it to deliver a competitive advantage. The clever selection, integration and application of technology underpins the success of our highest performing brokers. And for those that have invested the time and effort, the rewards have been significant.”
It also follows recent data by the Mortgage & Finance Association of Australia (MFAA), which showed mortgage brokers facilitated more than 70 per cent of all new residential home loans between July and September 2022, highlighting the importance of the third party channel.
Mr Tan added that the most successful brokers were those leveraging digital technology all the way through the client lifecycle.
“We’re seeing more and more potential borrowers sourcing product information online and investigating recommendations through social media and online reviews — so brokers need to have a solid and holistic online presence to attract new clients,” he explained.
However, given the several data breaches and hacks this year, such as with Optus and Medibank, as well as an alleged broker email hack, fears around digital security may be escalating.
The recent sentencing of a wannabe Sydney rapper over an alleged mortgage broker email hacking — which resulted in the transfer of a borrower’s deposit into “a stranger’s” bank account — has brought client-to-broker communication into the spotlight.
[Related: Broker-rapper hack underscores client contract need]
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