Sluggish market conditions continue as the number of mortgages approved for new house purchases dropped by 4.3 percent on the year last month. With less customers applying for mortgages coupled with fierce competition in the market, the FCA has called for innovation to help consumers find the best mortgage deal.
Digitizing the home-buying process is needed for traditional players to compete with non-traditional players disrupting the mortgages market. The UK mortgage application system remains largely phone and paper-based which slows down the application cycle. Updating underperforming and costly core-banking systems are a strategic priority for traditional mortgage providers as they compete against fintech and challenger banks.
In an effort to help traditional mortgage providers improve customer experience, Intelenet Global Services have launched a new Lending Suite with their banking clients. Using this AI & Automation based initiative, banks can generate mortgage offers in 30 minutes. The Lending Suite is interoperable with banks existing legacy systems which prove inflexible, reducing processing time by 40 percent and costs by 50 percent.
Crucially, this solution integrates with existing core systems to deliver significant speed and accuracy improvements without the need to replace current infrastructure. This is important given that less than 30 per cent of first-generation Core Banking Systems (CBS) replacements succeed, according to McKinsey.
Nitin Sahni, Director of Corporate Services at Intelenet Global Service comments: “Consumers are constantly searching for the best deals to enable them to invest in their dream home as quickly as possible. The last thing a customer wants is for this landmark time in their life to be tainted by long waits and arduous processes to get things moving.
“Revamping the core banking system seem daunting for banks who recognise there is a need to change their system but are deterred from the exorbitant implementation costs. Totally replacing the core business systems which largely underpin all banking operations is not feasible. Firms are looking for solutions to cut costs and processing times which fit alongside these systems.”
Nitin continues: “Speeding up processes will help traditional mortgage providers retain and expand market share while delivering the best possible customer experience.”