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Jessica Darnbrough
Brokers that continue to ignore online opportunities could find themselves losing relevance as more consumers look to buy their mortgages over the internet, an industry analyst has warned.
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RFi director Alan Shields said as technology improves, younger generations will look to purchase their mortgage online and reduce the amount of face to face interaction they have with brokers.
Mr Shields said this online revolution could be seen as a threat or an opportunity to brokers, depending on how they play their cards.
“In 10 or 15 years time, generation X and generation Y home buyers will expect to apply for their mortgage online. They will expect to have less face-to-face interaction,” he said.
“Brokers could potentially see this as a threat, or the aggregation groups could harness this and see it as an opportunity to create some sort of direct channel experience.”
But while more consumers will inevitably look to purchase their mortgage online, FAST’s chief executive officer Steve Kane said face-to-face interaction will always have a place in the mortgage market.
“So many banks already have a very strong online presence. ING Direct for example, doesn’t have any bank branches, but it still uses brokers and will continue to use brokers in the future,” Mr Kane told The Adviser.
“Regulation has made brokers even more professional and because of this, their proposition will always be relevant and have a place in the market. Customers are seeking information on the internet, they are not necessarily seeking fulfilment.”
