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What makes things especially complex for brokers, said Shore Financial CEO Theo Chambers, is that each lender has its own way of doing things. This inconsistency can be a detriment to efficient processes.
“Lender processes can often be ambiguous and complicated. Each lender has its own set of criteria, documentation requirements, and approval processes, which can vary significantly. This lack of standardisation means brokers need to navigate a complex landscape to match clients with the right products,” said Chambers.
“Additionally, constant changes in policies and procedures can add to the complexity, making it challenging to stay updated and provide accurate advice to clients. This is where brokers add significant value by leveraging their expertise to guide clients through these complexities, ensuring they find the most suitable mortgage product.”
Rebecca Rositano, broker at Hello Funding, agreed that the constant evolution of processes puts brokers at a disadvantage as lines become blurred.
“In this current climate the processes from lenders are continuing to change regularly. Lenders are tailoring their policies to current financial trends although the standard processes are lengthy, time consuming and off-putting to clients especially if you are self-employed and/or hold a property portfolio,” she said.
“Lenders can scrutinise an application and request more information where required making clients feel somewhat nervous about the depth of information required.”
Outdated systems aren’t helping
Making life harder for brokers are systems. Manual processes combined with antiquated tech are a hindrance as these reduce the efficiency at which a broker can operate.
“Manual and outdated systems are extremely challenging to navigate especially when time restraints are already in place due to the type of transaction. Clients will also lean towards a bank that holds more streamlined process and have invested in systems that are more secure to ease their mind if they decide to proceed,” said Rositano.
This inefficiency has a flow-on effect, negatively impacting the client. Chambers believes lenders should strive for modern solutions to help boost client relationships.
“Outdated systems can significantly hinder the efficiency and effectiveness of a broker’s role. Many legacy systems are not user-friendly and lack integration capabilities, leading to manual data entry and increased risk of errors. This not only slows down the loan processing time but also impacts the overall client experience,” he said.
“Modern, automated systems, on the other hand, can streamline operations, enhance accuracy, and allow brokers to focus more on client relationships rather than administrative tasks, thereby maximising the value they provide to their clients. This is why investing in technology is so important for brokers. By adopting advanced systems, brokers can offer more efficient and accurate services, improving the overall client experience and ensuring timely and effective mortgage solutions.”
Non-bank lenders are getting it right
Where traditional banks lag behind in terms of legacy systems, non-banks are reportedly better equipped with updated systems.
“Non-bank lenders provide certain areas within an application that are traditionally easier to prepare. Traditionally non-bank lenders are focused on the type of scenario being presented whereas traditional banks are extremely process driven making it harder for customers to be considered if they do not fit within the criteria for consideration,” said Rositano.
Chambers said similar sentiments: “In many cases, non-banks can be easier to deal with than traditional banks. Non-banks tend to be more flexible and innovative in their approach, often providing more personalised service and quicker turnaround times. They are also typically more willing to consider unique or non-conforming loan applications that traditional banks might reject. For brokers, this flexibility means more options to offer their clients, ensuring they can find tailored solutions that meet specific needs, further highlighting the benefit of working with a broker.”
What can lenders do to make life easier for brokers?
Improving the broker experience allows for better service to clients. Transparency can help achieve this, minimising confusion and streamlining the broking process.
“To make our role as brokers easier, lenders can focus on improving transparency and standardising their processes. Providing clear, consistent guidelines and reducing unnecessary paperwork would greatly enhance efficiency,” said Chambers.
“Investing in modern technology and systems that facilitate better communication and data sharing between brokers and lenders is also crucial. Additionally, embracing open banking initiatives can significantly streamline the data collection process, allowing for more accurate and quicker assessments of clients’ financial situations.
“Standardised forms and documentation across lenders would also reduce the complexity and time involved in preparing applications. Furthermore, offering more comprehensive training and support for brokers on their products and processes can help ensure we are well-equipped to serve our clients effectively. By implementing these improvements, lenders can enable brokers to operate more efficiently, ultimately benefiting clients through faster service and more informed guidance.”
According to Rositano, collaboration between brokers and lenders is what will improve the experience for all involved.
“I believe brokers and lenders should be working closely together to allow more flexibility and easier processing for our clients. As brokers, we take the time to have a much deeper understanding into a client’s level of needs and requirements to align the lender and lending required,” she said.
“In doing this, we are able to establish longstanding and returned business as clients are generally happier with their decision.”
[Related: Brokers reveal what they most want from lenders]
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